ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new mechanism for the electronic scrutiny of sales tax returns and online notification of errors and discrepancies identified through its computerized system.
Through S.R.O. 1655 (I)/2026, the FBR has amended the Sales Tax Rules, 2006, by introducing a new Chapter XII-A titled “Procedure for Electronic Scrutiny and Intimation of Issues Detected by the Computerised System.”
Under the new mechanism, the FBR’s computerized system will be able to issue online advice or advance notifications to registered persons through the IRIS portal. The notifications will identify factual or legal errors and other discrepancies, giving taxpayers an opportunity to provide clarification, rectify mistakes or take corrective measures before any legal or penal proceedings are initiated.
An advance notification may also be issued by the Officer of Inland Revenue having jurisdiction over the registered person. Taxpayers will be provided at least seven days to respond, rectify discrepancies or take other corrective action.
If no response is received within the prescribed period, a reminder will be issued, providing another period of not less than seven days for a response.
According to the FBR, the new chapter will apply to the automated scrutiny, analysis and cross-matching of sales tax returns and other available information relating to registered persons through the computerized system.
Records of discrepancies identified, notifications issued and responses received will be shared with the concerned Inland Revenue officer and maintained on the system dashboard.
The FBR said the automated scrutiny and electronic communication process would be implemented through Change Request Forms (CRF).
The concerned Inland Revenue officer will review the taxpayer’s response and, where necessary, take further action under the relevant provisions of the Sales Tax Act, 1990, and the rules made thereunder.
