FBR issues time-bound, risk-based registration under STGO No. 20 of 2026

The Federal Board of Revenue (FBR) has directed its field formations to process sales tax registration applications on a strictly risk-based basis under Sales Tax General Order (STGO) No. 20 of 2026 (IR Operations), dated August 24, 2026. The order took effect immediately upon issuance, with the Board directing all Chief Commissioners Inland Revenue and Commissioners Inland Revenue to ensure compliance.

Three-day processing target for low-risk applicants

Applications submitted through the computerised IRIS portal will be screened using computerised risk parameters. Those classified as low-risk will receive priority. Where a low-risk application is complete and meets all prescribed requirements, the concerned Local Registration Office (LRO) must grant registration without unnecessary delay and, as far as practicable, within three working days.

The FBR has clarified that not every application will be automatically approved within three days. High-risk or suspicious cases remain subject to enhanced scrutiny, including pre-verification, post-verification or other measures permissible under law. A low-risk classification also does not prevent subsequent verification if new information later indicates fraud, misrepresentation or other irregularities.

Officers barred from demanding extra documents without risk indicators

The STGO restricts officers from seeking additional information from low-risk applicants. No additional document or information may be demanded unless it is specifically required under the Sales Tax Act, 1990, prescribed under the Sales Tax Rules, 2006, needed to verify information furnished by the applicant, or necessitated by a specific risk indicator generated through FBR's computerised risk-management system.

Where an application requires further scrutiny, it must be referred to the concerned officer with specific, electronically recorded reasons. General or vague objections are barred. Incomplete applications must be flagged to the applicant through the computerised system within seven days, clearly identifying the missing document or information, the deficiency detected, the manner of rectification and the time allowed. Once the deficiency is rectified, the application must proceed without requiring the applicant to restart the process.

Pre-registration certification by trade associations for manufacturers

For manufacturing applicants, sectoral associations under the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will provide pre-registration certification. The association may certify, to the extent verifiable from its records, that the applicant is engaged or intends to engage in the relevant manufacturing activity, the business premises are identifiable, the applicant is a member where applicable, the proposed activity corresponds with the sector, and the particulars furnished match the association's records.

The certificate is to be transmitted electronically to the relevant LRO along with other required documents. The FBR has clarified that this certification is only facilitative and does not replace statutory requirements or grant any exemption. Associations will be held responsible if incorrect information later surfaces during physical verification.

For manufacturing applicants, LROs must conduct pre-physical verification under Rule 5(5) of the Sales Tax Rules, 2006 within three working days, with the outcome recorded electronically before the application proceeds.

What applicants should do

  • Submit the sales tax registration application through the computerised IRIS system with all prescribed documents, including a bank account certificate, utility details and photographs of business premises.
  • Manufacturers should additionally provide photographs of machinery and industrial electricity or gas meters, and may obtain pre-registration certification from their relevant sectoral association under the FPCCI.
  • Monitor the IRIS portal for any deficiency notices, which must be issued within seven days and must specify the missing information and how to rectify it.
  • Respond to deficiency notices within the allowed time; once rectified, the application will proceed without being restarted.

What the order does not specify

The STGO itself has not been published on the FBR website as of August 28, 2026, and the precise computerised risk parameters that determine low-risk classification have not been disclosed. The order does not specify a separate deadline for non-manufacturing low-risk applicants beyond the three-working-day target, nor does it set out the consequences for LROs that fail to meet the processing target.