The Khyber Pakhtunkhwa Finance Act, 2025 (“KPFA”) introduces sweeping reforms across provincial taxes, from stamp duty and property tax to royalties and professional levies. Most notably, it modernizes the KP Sales Tax on Services Act, 2022, introducing a negative list taxation system while retaining the standard sales tax rate of 15%.
Redefining the Role of Collection Agents
Under the Khyber Pakhtunkhwa Sales Tax on Special Procedure (Tax on Specified Services) Regulations, 2024, every “collection agent” is responsible for charging and collecting sales tax from the recipient of specified services.
Before the KPFA, this term referred only to the State Bank of Pakistan (SBP), any scheduled bank, or other entities authorized by the SBP to transfer money abroad. The KPFA now expands the definition to include any person or class of persons declared as “collection agents” by the Policy Board, thereby broadening administrative reach and flexibility in collection mechanisms.
From ‘Positive List’ to ‘All-Inclusive Service Definition’
Previously, the definition of service was confined to those specifically listed in the First Schedule to the Act, a positive list approach. The KPFA has eliminated this constraint and redefined service expansively to include all activities performed in the course of an economic activity, whether contractual, professional, or otherwise, and regardless of the medium (physical, digital, or online).
The definition now expressly clarifies that a service remains taxable even when it involves the use or supply of goods, whether such goods are essential or incidental to the service provided.
This redefinition ensures greater clarity, modernizes the law to capture digital and hybrid service models, and minimizes interpretational disputes by covering a broader spectrum of economic activities.
Shift to a Negative List Regime – Everything Taxable Unless Exempt
A cornerstone reform introduced by the KPFA is the transition from a positive list to a negative list framework. Under the previous system, only services included in both the First and Second Schedules were taxable. Now, all services provided in KP are deemed taxable except those specifically exempted in the negative list (First Schedule).
The Government has been empowered to amend this list through notifications. The standard sales tax rate remains 15%, with specific services listed in the Second Schedule subject to higher or lower rates, as prescribed.
Additionally, the Management Committee has been authorized to specify or amend Central Product Classification (CPC) Codes, Harmonized System (HS) Codes, or any other classification framework through official notification, ensuring administrative flexibility and alignment with international standards. Nevertheless, the inclusion or omission of a service in these codes does not determine its taxability.
Schedules Reimagined – Clarity through Classification
First Schedule – The New Negative List
The First Schedule now functions as a negative list, identifying services that are not taxable, subject to conditions specified therein. All other services not appearing in this list are taxable.
| S. No. | Description | Conditions for Exemption |
|---|---|---|
|
1 |
Room or Unit Accommodation Services for Students in Student Residences.
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Hostels exclusively meant for student accommodation and allied facilities
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2
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Other Human Health Services.
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Services to the extent of cosmetic treatment of burns or burned body parts provided by health care centers, hospitals or similar institutions.
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3 |
Hairdressing and Barbers’ Services.
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Services as are provided by traditional barber shops operating in premises not exceeding 150 square feet in total floor area and without air-conditioning facilities or installations at business premises.
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4 |
Dry-Cleaning Services, including for Product Cleaning Services.
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Such Services as are provided by small-sized, traditional, stand-alone launderers and dry cleaners that operate independently and are not part of any broader retail, commercial, or multiservice establishments and utilizing vintage or non-computerized machinery to maintain their conventional mode of service.
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5 |
Tour Operator Services.
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Such Services as are provided by Federal or Provincial Government departments exclusively related to Hajj.
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6 |
Toll Manufacturing including Moulding, Pressing, Stamping, Extruding, and Similar Plastic Manufacturing Services, Iron and Steel Casting Services, Non-Ferrous Metal Casting Services, Metal Forging, Pressing, Stamping, Roll Forming, and Powder Metallurgy Services including Dyeing and Coloring Services.
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Such Services as are provided on a toll manufacturing basis which are part of commercial or industrial operations.
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7 |
Airport Operation Services.
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The fee, taxes or similar other charges received by Civil Aviation Authority as a regulatory body for or in respect of its official functions shall not be charged to tax even though such functions appear to be of the nature or character of services.
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8 |
Wholesale trade services in relation to agricultural products like grains, oil seeds, live animals, hides, and unmanufactured tobacco, food items such as fruits, vegetables, dairy, meat, seafood, beverages, and bakery products, textiles and clothing, including yarn. fabrics, household linens, apparel, footwear, and accessories; household goods like furniture, appliances, lighting, cutlery, and glassware; consumer products such as books, stationery, toys, jewelry, and sports goods; construction materials, including flat glass, ceramic fixtures, wallpaper, paints, and tools; industrial and chemical products like fertilizers, pharmaceuticals, cosmetics, and cleaning materials; plant and machinery including motor vehicles, motorcycles. computers, telecommunications equipment, and industry-specific machinery.
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For the purpose of clarity, “wholesale trade services” shall refer to the sale or resale of goods in bulk or large quantities to business, industrial, commercial, institutional, or professional buyers, or to other wholesalers or retailers, wherein the goods are purchased in the wholesaler’s own name and intended for onward sale at a profit; provided that any activity involving the trade, distribution, or redistribution of goods carried out on behalf of others in exchange for a commission, fee, or any other form of consideration shall be treated as a taxable services.
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9 |
Retail trade services in relation to agricultural products like grains, oil seeds, live animals, hides, and unmanufactured tobacco; food items such as fruits, vegetables, dairy, meat, seafood, beverages, and bakery products: textiles and clothing, including yarn, fabrics, household linens, apparel, footwear, and accessories; household goods like furniture, appliances, lighting, cutlery, and glassware; consumer products such as books, stationery, toys, jewelry, and sports goods; construction materials, including flat glass, ceramic fixtures, wallpaper, paints, and tools; industrial and chemical products like fertilizers, pharmaceuticals, cosmetics, and cleaning materials; plant and machinery including motor vehicles, motorcycles. computers, telecommunications equipment, and industry-specific machinery.
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Retail trade services shall refer to the sale of goods in small quantities or individual units to final consumers or household; provided that any activity involving the trade, distribution, or sale of goods conducted on behalf of another party in exchange for a commission, fee, or other consideration, including but not limited to agency, consignment, or brokerage services, or any service provided to a customer beyond the sale of goods, such as delivery services, whether conducted through online platforms or otherwise, shall be deemed a taxable services.
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10 |
Urban, suburban and interurban railway passenger transport services; intra-provincial, intra-city and inter-city travel or transportation of persons by road through non air-conditioned buses, coaches, wagons, jeeps, cars, taxies and other motor vehicles primarily meant for passengers transport, passenger transport by manor animal-drawn vehicles including passenger transport vehicles through roads, inland water passenger transport by ferries, cruises, or other means; sightseeing services conducted by rail, water, or air including coastal and transoceanic water transport services of passengers by ships, domestic and international scheduled air passenger transport services and space passenger transport services.
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Where such vehicles have an engine capacity below 660cc and the services are not provided or facilitated through any online or digital platform or the services are not classified as ride-hailing or app-based transportation services.
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11 |
Coastal and Transoceanic water transport services of freight by refrigerator vessels, tankers, or container ships and space transport services of freight.
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12 |
Water distribution through mains on own account including distribution of steam, hot water, and air-conditioning supply through mains on own account.
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Only such services shall be deemed exempted which are not provided through subsidiaries or third-party infrastructural arrangements. All such services as are provided by businesses for installation, management and maintenance of water distribution system, steam and air conditioning systems shall remain taxable at
applicable rate of tax.
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13 |
Central banking services including financial market regulatory services.
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Such services which are construed as core regulatory functions performed by the State Bank of Pakistan.
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14 |
Basic research services in physical sciences, chemistry, biology, and biotechnology.
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The exemption shall apply to services which are performed for academic research purposes and not on commercial basis.
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15 |
Veterinary services for pet animals, livestock, and other veterinary services.
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The exemption shall apply to services as are provided by Government-owned or regulated bodies.
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16 |
Library services.
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17 |
Government public services including executive and legislative services, financial and fiscal services, economic and social planning, statistical services, Government services to research and development. Public administrative services related to education, health care, housing, community amenities, recreation, culture, religion, agriculture, forestry, fishing, fuel, energy. distributive trades, general economic, commercial, and labor affairs. Services related to external affairs, diplomatic and consular services, foreign economic and military aid, military and civil defense, police, fire protection, law courts, detention, rehabilitation of criminals, public order, and safety. Administrative services for sickness, maternity, temporary disablement, Government employee pensions, old-age, disability or survivors’ benefits, unemployment compensation, and family or child allowance programs.
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Services as are provided by Federal, Provincial Governments or local governments in the public interest.
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18 |
Services furnished by trade unions.
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Such services as are provided without any charges or fees.
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19 |
Religious services, services by political organizations, human rights organizations, environmental advoсaсy groups, other special group advocасу, and community facility support, youth associations, cultural and recreational associations.
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Such services as are provided without profit motives and in the public interest.
|
|
20 |
Services of performing artists including original works of authors, composers and other artists.
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Such services which are provided to reflect cultural and societal values and benefit the public at large; provided that services which are provided in live concerts, stage shows, dramas or similar commercial entertainment events shall remain taxable.
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21 |
Services as are provided by museums including botanical and zoological garden services and nature reserve services including wildlife preservation.
|
Only such services which are intended for preservation of national heritage and natural resources.
|
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22 |
Funeral, burial, crematorium, or mortuary services directly related to the preparation, handling, and final disposition of a deceased person, including embalming, storage, transportation of the deceased to a funeral site, cemetery, or crematorium, and the performance of burial, cremation, or interment ceremonies, provided by funeral homes, crematoria, cemeteries, or similar entities.
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23 |
Domestic services as are provided by individuals which are aimed at household help.
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Only such services are exempted as are provided by individuals in their personal capacity, without the involvement of agents, manpower supply agencies, or any other intermediary entities engaged in arranging or providing individuals for the delivery of such domestic services.
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24 |
Services provided by extraterritorial organizations and bodies including services provided by foreign diplomatic missions.
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Only such services which are aimed at nonmarket, non-commercial functions aimed at fostering global cooperation and addressing transnational challenges.
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25 |
Access to a road or bridge on payment of toll charges.
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26 |
Education services.
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Education services as are provided by schools, colleges and universities and includes tution fee charged from their students.
|
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27 |
Members of Parliament (Majlis-e-Shoora) and Provincial Assemblies.
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Only such services as are provided on non-commercial basis and without intention to furtherance of the personal businesses.
|
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28
|
Professional work of cutting, sewing, fitting, altering, or repairing clothes to meet individual specifications (excluding fashion designing).
|
|
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29 |
Repair, maintenance, and restoration of footwear and related leather goods, including services such as resoling, reheeling, stitching, polishing, replacing zippers or buckles, and minor modifications to improve fit or extend the life of shoes, boots, sandals, and other leather accessories.
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|
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30 |
Services rendered by individuals such as laborers, electricians, carpenters, plumbers, painters, or similar service providers. directly to households or religious centers including mosques, on a daily wage or labor charge basis, without involvement of any contractor or manpower supply agencies.
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Only such services as are provided by such individuals in their personal capacity and are rendered solely for domestic or non-commercial use and which are not utilize for furtherance of the business or to serve commercial interests of the service recipient.
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Second Schedule – Dual Rate Structure
Previously, the Second Schedule listed taxable services with their respective rates. Under the KPFA, all such services remain taxable either at their specified rates or, where none is prescribed, at the standard 15%.
The omission of any classification heading shall not imply exemption or immunity from tax. Allied, ancillary, or connected services forming part of the principal service shall also be deemed taxable as integral components of that principal service.
The Second Schedule has now been bifurcated as follows:
Part I — Services Subject to Rate Above Standard Rate
Contains services (notably telecommunication services) taxed above 15%.
| Sr. No. | Description of Services | Headings | Rate of Tax |
|---|---|---|---|
|
1 |
Telecommunication and similar allied or ancillary services including: (a) Telephone services (including fixed line, wireless, cellular, wireless local loop, video, pre-paid, post- paid, pay phone cards and voicemail etc.); (b) Messaging services (including short message service (SMS), multi media message service (MMS) and messaging through other digital applications etc.); (c) Installation, provision, shifting, changing, conversion and restoration of telephone connections (including conversion of NWD connection to non NWD or vice versa) and similar other services: (d) Bandwidth services (including copper-line/fiber-optic/co-axial cable/microwave/satellite-based, IP services, teleconferencing, 3G/4G/5G/LTE or similar other services: (e) Telegraph and other services relating thereto; (f) Tele fax including store and forward fax and similar other services; Internet services including e-mail, dial-up and other allied services: (g) Broad band services for DSL connection (including copper-line/fiber optic/co-axial cable/ wireless/ satellite-based, internet/e-mail/ data/SMS/MMS services on WLL or cellular mobile networks) and similar other services; (h) Data communication network services (DCNS including copper-line/co-axial cable / fiber-optic / wireless / radio / satellite-based, services relating to value added data, virtual private network (VPN) and digital signature) and similar other services; (i) Long distance international (LDI) services; (j) Local loop or other similar services; Audio text services (including tele-text, trunk radio, paging or similar services); (k) Voice paging services (including radio paging, vehicle or other object (whether or otherwise) tracking and burglar alarm etc.) and other similar services: (l) Rental either full, partial or on sharing basis of space, place or any other facility or arrangement on towers or other structures or installations for any purposes; (m) Internet-based cable TV services whether as a single service or otherwise; and such services as are provided by Internet Service Providers (ISPs) providing Television Services, including Cable TV, IPTV, Internet-Based TV or Services delivered through Digital Boxes or Android-Based Devices, with or without internet connectivity i.e. Vehicle Tracking, tracking and alarm services, burglar and security alarm services etc; and (n) All other similar allied, ancillary or auxiliary services. Explanation: In case of incoming international calls, charges received by telecom service providers abroad shall be taxed on tax fraction formula basis only to the extent to which such charges are shared or received by such domestic service providers treating the charges so shared or received as tax-inclusive. |
9813.0000 |
19.5%
|
|
2 |
The following services provided or rendered by entities, enterprises, or undertakings including all such services, facilities, utilities, entertainments, comforts, enjoyments or amusements etc. (i) whole range of services including accommodation, food supplies and laundry etc. provided or rendered by all categories of non-corporate hostels and messes. (ii) Services provided or rendered by local non- corporate stand-alone restaurants. hotels or chains of such hotels (including guest houses and lodges, hotels, motels, guest houses, resorts, accommodation, food service providing farm-houses. motorway-or-highway-side accommodation, restaurants (including food service supply chains), ice cream parlors. (iii) Clubs including such clubs as, though run on mutuality basis, are operated in commercial mode, manner or style. (iv) In case of traditional type non-corporate restaurants usually called as dhaba or conventional hut-type or similar other road/street side non-air-conditioned restaurants usually serving limited range of pre- cooked or preprepared food items with informal seating environment (located or operating anywhere in the Province) including traditional accommodation facilities like sarrayae or inns or open air over night bed provisioning services generally located or available around or in the vicinity of railway stations, bus or wagon stands (stations) provided by noncorporate entities and the charges for overnight stay do not exceed rupees three hundred per bed. (v) Tax shall be charged on fixed rate basis in respect of wedding/ marriage/ shadi halls as per the following categories: CATEGORY-A: Where the wedding hall is having a capacity of 500 or above persons and located in posh area of a major city, CATEGORY-B: Where the wedding hall is having a capacity of more than 300 but less than 500 persons and located in municipality, and CATEGORY-C: Where the wedding hall is having a capacity of less than 300 persons and located in suburb or roadside outside main city. i. In case of caterers whether stand-alone or otherwise, food provisioning/food servicing or food supply facilities, suppliers of prepared eatables and drinkables, pandals and shamianas. ii. In case of non-corporate sector hospitality businesses, ineluding hotels, guest houses, rest houses, lodges, restaurants and similar other accommodations and food serving businesses, located in the tourist spots of Galiyat and Kaghan Valleys, subject to the compliance to all such conditions and procedures, as may be prescribed by the Authority, in this behalf Mandatory Condition of Installation of RIMS/IMRS: Every service provider, providing services of restaurants, hotels, food business or any other similar business shall integrate or install the Restaurant Invoice Management System (RIMS), Invoice Management or any other prescribed e-invoicing system or computerized system, for the purpose of issuing sales tax invoices. General Clarifications: Clarification I: Six percent (06%) rate shall also be applicable for all corporate sector entities, providing services throughout the provinces, where payment against restaurant and hotel services is received through debit, credit or any other prepaid cards, mobile wallets or QR scanning subject to the condition that no input tax adjustment or refund shall be admissible. In case payment is received in cash, the applicable tax rate shall be the standard rate of tax. Clarification II: It is clarified for the removal of any doubt that the services of this entry include “takeaway” or “home or doorstep delivery” transactions of the restaurants or other categories or types of food serving outlets either as a part of their overall services or as an exclusive activity. Clarification III: Wedding halls/Marriage/ Shadi Halls/marques/lawns not availing fixed tax option shall charge standard rate of tax on total value of services. However, all wedding halls opting to charge fixed tax on per function basis shall mandatorily intimate respective tax jurisdiction before charging fixed tax. The wedding halls or other similar business entities shall in no case revert back to standard rate of tax without approval of Management Committee. General Tax Relief: Any person or class of persons who, during tax periods from July 2022 to June 2025, provided services taxable under Serial No. 1 of Second Schedule to the Act, have inadvertently omitted to charge sales tax and consequently failed to deposit sales tax during respective tax periods may deposit outstanding tax amount as arrears through self-assessment or detection, without payment of any additional penalty for nonpayment or default surcharge: Provided that in cases where proceedings under section 27 and 60 of Act have been initiated, pending or completed before 01st July 2025, said person or class of persons may settle their tax liabilities by making payment of the principal amount of tax and without payment of any additional penalty for non-payment or default surcharge. Provided further that this concession is conditional upon full payment of all tax arrears by 30th September 2025 and shall be applicable only in cases where sales tax on services has not been charged. |
9801.0000
9801.1000
9801.2000
9801.3000
9801.4000
9801.5000
9801.6000
9801.7000
9801.8000
9801.9000
|
(i) 5% without any input tax adjustment. (ii) 10% without input tax adjustment (iii) 10% without input tax adjustment: Provided that for clause (ii) & (iii), 6% rate shall be applicable where payment against restaurant and hotel services is received through debit, credit or prepaid cards, mobile wallets or QR scanning subject to the condition that no input tax adjustment or refund shall be admissible. (iv) 2% without input tax adjustment Category А: Rs. 50,000 per Function Category В: Rs. 20,000 per Function, and Category С: Rs. 10,000 per Function. (vi) Five percent (5%) without input tax adjustment. (vii) Ten percent (10%) without input tax adjustment, however Six Percent (06%) rate shall applicable where payment against restaurant be and hotel services is received through debit, credit or prepaid cards, mobile wallets or QR scanning subject to the condition that no input tax adjustment or refund shall be admissible. |
|
3 |
Services provided by health care centers etc. in private sector.
|
9821.1000
|
5% without input tax adjustment of the charges (including fixed charges, if any) of such centers hospital or beds/ rooms: Provided that the said charges exceed rupees 10,000/- per day per bed/room. |
|
4 |
Services provided or rendered by beauty parlors, beauty clinics, health care centers, cosmetic or plastic surgery centers /clinics, hair transplant centers or clinics, health clubs, gyms (including yoga centers with or without yoga teaching classes system or arrangements). physical fitness centers, massage centers, pedicure/ manicure centers, swimming pools and similar other establishments, undertakings, enterprises or entities including hair dressing, hair colouring/dying and barber services.
|
9811.0000
9811.1000
9811.2000
9811.3000
9811.4000
9811.9000
9821.1000
9821.4000
9821.5000
|
5% without any input tax adjustment.
|
|
5 |
Services provided or rendered by medium sized stand-alone or other launderers and dry cleaners including carpet or sofa set or similar furniture items cleaners or washers shall be charged at reduced rate:
|
9808.0000
9808.1000
9808.2000
9808.3000
9808.4000
9808.9000
|
2% without any input tax adjustment.
|
|
6 |
(a) Services provided or rendered by non-corporate entities, not registered with SECP, authorized to transact or deal with business in any manner on behalf of others such as customs agents, shipping agents (including import/export cargo freight forwarders), stock brokers, share transfer agents, business support or business or asset management agents, tour operators, travel agents, recruiting/recruitment agents, labour or man power supply services, insurance agents, commission agents, distribution agents including whole sale trade services on commission basis and similar other persons engaged in business transaction work or activity against commission or similar charges, other than those provided by corporate entities; (b) Business support services shall be charged to tax; (c) The Customs Agent shall pay tax at the fixed rate. (d) In case of travel agents providing services for arrangement of performance of Hajj and Umrah, a fixed rate of tax shall be charged as follows: (i) for Umrah services; and (ii) for Hajj services. Explanation-l: The persons falling in this category do not generally have any investment or investment-related interest in the business though they may have their own infrastructure or other resources to carry out such work or activity. Explanation-II: The persons covered in this category shall pay tax to the Authority in all such cases where their clients, customers or buyers are located in the Province regardless of the location of such person’s business or office elsewhere and regard less whether or not documentation or other related formalities of their transactions with such clients, customers or buyers is done or are carried out in the said Province or elsewhere. Explanation-III: All corporate entities, providing services under this entry shall charge tax at standard rate. |
9806.0000
9806.1000
9806.2000
9806.3000
9806.4000
9806.6000
9806.7000
9806.8000
9806.9000
9819.1000
9819.1500
9842.0000
|
8% without any input tax adjustment. 5% without any input tax adjustment. Fixed Rate of Rupees 3,000/- per Goods Declaration. Rs 5000 for each person between age 13 and 60 years; Rs 10000 for each person between age 13 and 60 years; |
|
7 |
(a)Advertisements on TV including cable TV networks, radio, CCTV, newspapers, periodicals, magazines and similar other publications, websites and internet, poles or similar structures, bill boards, electronic bill boards, hoarding boards, signboards and similar other medium of advertisement display, lease renting of space whether on constructed or erected structure otherwise for the purposes of displaying advertisements in any manner and other advertisement services including services provided or rendered by advertising agents. (b) In case of advertisements on or through print media of all types and forms. Explanation-I: In case of renting or leasing of space for advertisements’ purposes by Government or public sector or para-public sector development, housing or other authorities, departments or institutions, the whole amount of tax due shall be withheld or deducted and paid directly to the Authority by such authorities, departments or institutions. Explanation-II: In case of advertisements relayed, telecasted or print- media-circulated in more than one Provincial jurisdictions, tax shall be paid to the Authority on apportionment basis keeping in view the population ratio of the province of Khyber Pakhtunkhwa in the aggregate population of all such jurisdictions. |
9802.0000 9802.1000
9802.2000
9802.3000
9802.4000
9802.5000 9802.6000 9802.7000 9802.8000 9802.9000 9806.5000
|
10% without any input tax adjustment 2% without any input tax adjustment. |
|
8 |
Services provided or rendered by non-corporate entities in matters of sale, purchase, rent or hire (other than rent-a-car) under any kind or type of arrangements with the client or the principal: (a) Property dealers, property agents and realtors. (b) Car and other automobile dealers (whether old or new). (c) Dealers of electrical or electronic equipment’s, appliances or other similar goods (whether old or new). Dealers of plant and machinery including construction machinery and similar capital goods. (d) Dealers of other second-hand goods. (e) Renting services in respect of plant, machinery including construction machinery and other equipment’s etc. Explanation: For purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax |
9807.0000 9807.1000 9807.2000 9807.3000 9807.3000 9807.9000 |
2% without any input tax adjustment.
|
|
9 |
(a) Services provided by non-corporate specialized workshops or under takings: (i) Auto-workshops whether or not providing other allied or extended services. (ii) Workshops for industrial, construction, earth-moving other similar heavy duty or special purpose machinery. (iii) Workshops for heavy or light duty electric, electrical or electronic machinery (such as transformers, generators, turbines, motors, pumps, rotators, power accumulators, transmission networks or systems etc.) equipment or appliances etc., including computer hardware and allied equipment’s or appliances etc (iv) Services provided in respect of their pair or maintenance of aircrafts, helicopters and other flying objects (v) Car washing, including compounding and polishing etc., or similar service stations. (vi) Other workshops or workshop-type businesses. (b) In case of stand-alone car wash (car wash station) services; (c) In case of authorized automobile dealers’ workshops (whole range of their workshop services including car wash etc.) Explanation: For the purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax |
9820.0000 9820.1000 9820.2000 9820.3000 9820.4000
9820.9000
|
5% without any input tax adjustment. 2% without any input tax adjustment. 10% without any input tax adjustment. |
|
10 |
Services provided or rendered by non-corporate specialized agencies: (a) Security agencies including their activities relating but not limited to providing cash or precious articles transportation or movement security, tracking services and security alarm services. (b) Credit rating or similar evaluation or revaluation agencies. (c) Project including business project planning or preparation agencies. (d) Market research or market survey agencies. (e) Private detective or intelligence service providing agencies. (f) Other similar agencies. Explanation: For purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax. |
9818.0000 9818.1000 9818.2000
9818.3000 9818.4000 9818.5000 9818.9000
|
10% without any input tax adjustment
|
|
11 |
(a) Services provided by construction contractors, architects, civil engineers, land or property surveyors, construction consultants, designing and supervision consultants, town or real estate or property promoters, developers or planners including interior decorators or allied or ancillary professions: (i) Construction services rendered or provided in respect of the construction of structures, buildings, roads, bridges, under passes or flyovers (and other civil works), electromechanical works, turn-key and Engineering, Procurement and Construction (EPC)projects and similar other works involving construction activity. (ii) Architects and civil engineers or town promoters, developers, planners. (iii) Town, real estate or property promoters, developers or planners. (iv) Services of contractors of allied works such as electrical, mechanical, gas fittings, plumbing, water boring, wood work, plastering, flooring, steel work, paint and other finishing work or works. (v) Interior decorators. (vi) Landscaping or land development designers including land surveyors. (vii) Other similar, allied or ancillary services. (b) Government funded construction projects including ADP/PSDP- funded projects and construction of hydropower projects the rate of Tax shall be charged. (c) In case of land development, tax shall be charged at specific fixed tax. (d) In case of commercial construction of residential buildings, flats or apartments, commercial plazas, malls, towers or complexes etc., tax shall be charged. Exemption: Full exemption on: (a) The construction work in respect of development of industrial estates/zones, consular buildings and construction works under international tenders based on and funded from foreign grants-in-aid agreements or arrangements. (b) Residential construction and allied works in respect of the Prime Minister’s Naya Pakistan Housing Scheme. (c) The projects initiated or under taken under Government’s Annual Development Programme (ADP) provided either such projects have been initiated or complete donor before 30thJune, 2021 or payments, whether full or in part, in respect thereof have been made on or before the said date (the ongoing projects in respect of which agreements or contracts were signed before the said date, shall been titled to this exemption regardless of the schedule of payments relating thereto). (d) To the extent of such portion or portions of the construction work of the projects of Public Sector Development Programme (PSDP), as were undertaken and completed before 30thJune, 2021, regardless of the dates of their approval or initiation; provided that no such exemption shall be claimed or available on such portion or portions of the work of such project or projects as has/have not been completed before 30th June, 2021. (e) Construction services, including allied works, provided or rendered in respect of low-cost housing projects and schemes of the Provincial Housing Authority of Khyber Pakhtunkhwa. Condition: The exemption allowed under this part shall not be construed or interpreted in any manner to claim or take any refund, waiver, dispensation or relief of tax already deposited, paid or recovered (including already withheld or deducted but not deposited or paid) on or before 30th June, 2021 on any grounp whatsoever. Explanation: For the purpose of this item, the expression “initiated” shall, under no circumstances, be construed to commence prior to the date of actual signing of the agreements for Government sector construction projects. Clarification: For the purpose of removal of any doubt, it is clarified that for the purpose of this serial number: (i) construction services shall also cover all such construction and allied services as are financed and funded either under Annual Development Program (ADP) or under Public Sector Development Program (PSDP); and (ii) self-construction of residential houses for personal use shall not be liable to tax. (iii) Construction services shall include construction works of power (including hydro-power) generation projects.Where fixed rates of rupee one hundred per square yard, or as the case may be, rupees fifty per square foot are applicable in case of land development and commercial construction as per description specified above, tax shall not be charged in respect of the areas allocated, fixed or used exclusively for schools, medical dispensaries, mosques, graveyards, parks, public toilets, corridors (inside passages of buildings) and stairs provided that these facilities are meant for common use of the public at large without the involvement of any commercial aspect including intention or purpose for sale, leasing or renting. (iv) The tax rate of 4% shall not be applicable on such ADP funded projects as are approved or initiated before 01st July 2025. |
9815.0000 9815.1000 9815.2000 9815.3000 9815.4000
9815.0000 9815.1000 9815.2000 9815.3000 9815.4000
|
5% without any input tax adjustment. 4% without any input tax adjustment One hundred rupees (Rs.100 only) per square yard of the total (aggregate or gross) developed land without any segregation, fragmentation. segmentation, splitting or slicing with reference to the factual or intended use whether immediate or subsequent and no input tax adjustment shall be admissible in this regard. Fifty Rupees (Rs.50 only) per square feet of the covered area without any input tax adjustment |
|
12 |
Digital or IT-based services in whatever form or manner or under whatever arrangement, including but not limited to: (a) Web design and development; (b) Mobile app development; (c) Server management; (d) page-speed optimization, UX/UI optimization; (e) PPC marketing, blogging; (f) Google Ad Words, Face book advertising, Instagram advertising: (g) Custom software development, assessment and road map development, software maintenance and support services, supply or sale of any other software or software product or products through any medium; (h) Online digital marking services such as search engine optimization (SEO); (i) social media marketing, content marketing, affiliate marketing, influencer marketing, email marketing, viral marketing services, etc. (j) IT or Digital Based, including Cloud-based Content Streaming, Live Streaming, Cloud-Based OTT (over-the-top) Platforms, On-Demand Streaming Services, Cross Platform Accessibility, VOD (video-on-demand) Libraries, including any other similar Subscription-Based Services |
9850.0000
|
5% without any input tax adjustment.
|
|
13 |
Services relating to works or projects in respect of exploration and production (E&P) or mining of minerals, oil and gas including licensing, renting or re-renting, leasing or re-leasing, surveys, geo-map development, equipment mobility, product evaluation, product marketing and other services or activities related or allied thereto. Explanation: In case of oil, gas and mining sector or industry, tax shall be charged on both the fee (by whatever name called) paid for the purposes of lease or license including renewal thereof and on the royalty: Provided that where such fee or royalty is received by a government department or authority, the tax shall be paid on receipt basis directly by such department or authority. Clarification: The Services relating to works or projects in respect of exploration and production (E&P) or mining of minerals and Oil & Gas including surveys, geo-map development, equipment mobility, product evaluation, product marketing and other services or activities related or allied thereto shall be chargeable at the standard rate of tax. |
9845.0000
|
The rate of
tax on the
leases
(including
re-leasing by
the lessees)
and licenses
(including
subcontracting
or license
usage
permissions
by license
holder)
granted or
fees and
royalties,
received by
Government
Departments
or as the
case may be,
|
|
14 |
The services provided or rendered by non-corporate entities in respect of Airport services (including passenger facilitation, car parking, cargo handling, cargo warehousing or storage, aviation support services, flight kitchen supplies, renting of special purpose machinery, equipment, vehicles, porter age, quarantine and other fumigation or vaccination, janitorial services, aircraft cleansing services, aircraft maintenance services, jet or other fuel supply services etc. Explanation: For the purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax. |
9830.0000
|
10% without any input tax adjustment
|
|
15 |
The services provided or rendered by non-corporate entities in respect of Dry port services including operation of a dry port and other services provided at or in respect of dry port such as inward/outward transportation/movement of goods, cargo handling. cargo storage or ware housing. loading/unloading of cargo, booking or discharge of cargo, services relating to inspections. certification or similar or other type of services related activities in respect of cargo etc. Explanation: For the purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax. |
9843.0000
|
10% without any input tax adjustment
|
|
16 |
(a) Services provided or rendered by practitioners, professionals, consultants and advisers (by whatever name called) in the irrespective fields or disciplines: (i) Medical, dental or allied health fields or disciplines including para-medics and specialized technicians of medical fields. (ii) Human resource management or development (including training services) (iii) Veterinary and allied sciences including pet care. (iv) Law and allied fields or disciplines. (v) Financial. accountancy, cost accountancy, audit, tax management or tax affairs and similar other fields or disciplines. (vi) Business planning, business management, business reforms, business communication including hospitality administration and similar other fields or disciplines. (vii)Software or IT-based system development or management or similar other such fields. (viii) Similar services in other fields, disciplines or regimes. (b) In case of practitioners, professionals, consultants or advisers of medical (including dental) and legal professions or fields, the rate of tax shall charge. (c) In case of practitioners. professionals, consultants or advisers of legal profession or field, Tax shall be deposited as fixed sales tax at the time of filing of each case, appeal or petition and proof of which shall be attached with the Power of Attorney. |
9816.0000
9816.1000
9816.2000
9816.3000
9816.4000
9816.5000
9816.6000
9816.9000
9826.0000
|
5% without any input tax adjustment: 2% without any input tax adjustment. Fixed Rate of Rupees 500/- per each case without any input tax adjustment |
|
17 |
Cinematographic production, photographic services, recording services and telecasting or broadcasting services including: (a) Film making or film production including drama production whether in serials or otherwise. (b) Telecasting or broadcasting services (other than TV cable operators). (c) Videotape and recording services, sound recording services. TV/Radio production house services. (d) Photographic services (services of photography or photographers). Other similar. allied, ancillary or auxiliary services. |
9803.0000
9803.1000
9803.2000
9803.3000
9803.4000
9803.5000
9803.9000
|
2% without any input tax adjustment
|
|
18 |
Event management services provided or rendered by noncorporate entities whether cover in gall or any of the processes like planning, budgeting, scheduling, site selection, acquiring necessary permits, coordinating transportation and parking, arranging iör speakers or entertainers, arranging decor, event security, catering. picturing, video filming, musical enjoyment so or any other allied or connected task. Explanation: For the purpose of clarity, the services falling under this entry which are provided by corporate entities shall remain taxable at standard rate of tax |
9846.0000
|
Ten percent (10%) without any input tax adjustment
|
|
19 |
The services provided or rendered by non-corporate entities in respect of exhibition, convention or carnival services and allied services including renting of purpose-specific property or space for such events.
|
9825.0000
|
Five percent (05%) without any input tax adjustment
|
|
20 |
Cable TV operators other than those providing internet-based TV services whether composite, multiple, bundled or otherwise which are chargeable to tax under telecommunication services. |
9819.9000
|
Five percent (05%) without an input tax adjustment
|
|
21 |
Services provided or rendered by call centres (by whatever name called) engaged in mediating business, trade or sale/purchase transactions between the sellers and buyers whether located inside or outside the country.
|
9837.0000
|
Two percent (2%) without any input tax adjustment.
|
|
22 |
The services provided or rendered by non-corporate entities in respect of storage and warehousing services including public bounded warehouses, cold storages and yard surplices used for storage of empty or loaded containers on rental or charges basis including cold storage services (including other forms of warehousing of agriculture produce) regardless of their corporate or non-corporate status.
|
9844.0000
|
Ten percent (10%) without any input tax adjustment
|
|
23 |
Container terminal services provided by non-corporate entities including services of storage or warehousing of containers either imported or meant for export including transshipment or transit.
|
9841.0000
|
Ten percent (10%) without any input tax adjustment
|
|
24 |
Services provided as facilities for intra and inter-provincial including intra and inter city travel or transportation (including carriage) of persons by road (passenger transportation). Clarification: In case of inter-provincial transportation of persons by road through above means, the value for the purposes of sales tax shall be reduced by 50% where such services originate or terminate in the province. |
9804.4000
9805.9000
|
Five percent (05%) without input tax adjustment
|
|
25 |
Services provided by private laboratories, scientific laboratories, mechanical laboratories, chemical laboratories, electrical or electronics laboratories, pathological laboratories, Forensic laboratories medical diagnostic laboratories including technical services relating to X-rays, CT scan, MR Imaging (MRI), ultrasound, echo etc. or other such laboratories
|
9817.0000
9817.1000
9817.2000
9817.3000
9817.4000
9817.5000
9817.6000
9817.9000
|
Five percent (05%) without input tax adjustment
|
|
26 |
Valuation or assessment services including competency and eligibility testing services and services involving written tests with or without interviews for job or work recruitment or selection for any other purposes. Explanation: For the purpose of this entry, valuation or assessment includes revaluation, reassessment or repetition thereof. |
9848.0000
|
5% without any input tax adjustment
|
|
27 |
The following services of Pakistan Railways whether falling under this serial No. or elsewhere in this Schedule, shall be liable to tax at the rate of Two Percent (2%) without any input tax adjustment: (i) courier services in relation to the speedy, fast, quick or urgent mail, parcel or cargo services provided; and services provided for inland carriage of goods against freight or carriage charges. |
9805.2000
9805.3000
|
2% without any input tax adjustment
|
|
28 |
Services provided or rendered by under writers including sponsorship services.
|
9819.1100 |
2% without any input tax adjustment
|
|
29 |
Services provided or rendered by indenters and similar intermediaries.
|
9819.1200
|
2% without any input tax adjustment
|
|
30 |
Services provided or rendered by auctioneers.
|
9819.9100
|
2% without any input tax adjustment
|
|
31
|
Services provided or rendered by non-corporate entities in respect of quality assurance, quality control, quality inspection (including pre-inspection), quality verification or certification including verification or certification of quality or standards under ISO regime.
|
9834.000
|
2% without any input tax adjustment
|
|
32 |
Rent-a-car or rent-a-cab services. Explanation: The persons engaged in providing or rendering service so rent-a-car or cab shall pay tax regardless of the category of the vehicle or logistics used in respect of such services. |
9819.3000
|
5%
|
|
33 |
Ride-hailing or ride-hail services like Uber, Cream, Biker and Lyft etc. regardless of the mode, manner or dynamics of the business system involved in such services.
|
9851.0000
|
5% without any input tax adjustment
|
|
34 |
Online Market Place (OMP) including online platform or portal services including online booking and reservation services by whatever name called (other than ride- hailing or ride-hail services)
|
9852.0000
|
5% without any input tax adjustment |
|
35 |
Services provided or rendered by non-corporate entities relating to or in respect of the installation, erection, commissioning or other permanent structure- affixed/ linked/ tied placement (whether full or in part) of any industrial, mechanical or electrical plant, machinery or equipment (excluding installation of domestic equipment’s etc. for residential use).
Explanation: The factors like new, reconditioned, repaired, over hauled or old status of the equipment’s or carrying out any work/ process or works/processes related thereto, shall not affect the levy of tax under this heading.
|
9853.0000
|
2% without any input tax adjustment
|
|
36 |
Apartment/Flats maintenance fee or charges including House Management, Real Estate Management Services of Rent Collection.
|
|
5% without any input tax adjustment
|
|
37 |
Parking, Towing. and Valet Services are provided either on a contractual basis or directly to customers.
|
|
5% without any input tax adjustment
|
Lists services taxed at reduced rates, with all unlisted services subject to the standard rate by default.
Expanded Definition of Economic Activity – Employees in Focus
Previously, services rendered by employees to their employers were excluded from the scope of economic activity. The KPFA narrows this exclusion, only those services provided under a direct employment contract are now exempt.
This means fees or commissions paid to employees acting beyond their contractual employment scope, or those performing services for third parties on behalf of their employer, will fall within the ambit of taxable services.
This change appears aimed at extending the tax net to human resource outsourcing and similar arrangements. However, its interpretation will need to be reconciled with judicial precedents which have held that employee-related reimbursable costs do not constitute taxable services.
Input Tax Credit – Cash Transactions Under Tight Watch
Earlier, input tax credit was disallowed for any transaction exceeding Rs. 50,000 if payment was not made through the recipient’s business bank account. The KPFA refines this rule, the
Rs. 50,000 limit now applies on a per-person, per-tax period basis rather than per transaction.
Henceforward, if aggregate cash payments to a single person exceed Rs. 50,000 in a tax period, the related input tax will be inadmissible. The threshold now explicitly includes sales tax within this limit.
De-Registration – Aligning Procedure with Regulations
The Management Committee has been vested with authority to de-register any person who is not required to be registered under the Act. The process and requirements for de-registration are aligned with Regulation 12 of the Khyber Pakhtunkhwa Sales Tax on Services Regulations, 2024, ensuring procedural uniformity.
Provincial and Cross-Border Recordkeeping Obligations Enhanced
A registered person providing taxable or exempt services in other provinces must now maintain separate records in a form that allows reconciliation or determination of tax liability attributable to KP. This measure aims to strengthen cross-provincial audit and compliance.
Electronic Filing – Now a Statutory Requirement
The statutory requirement for electronic filing of sales tax returns, previously contained in the Rules, is now incorporated into the Act itself.
Further, the time limit for filing a revised return has been reduced from six months to 120 days from the date of filing the original return.
Digital Compliance: Heavy Penalty for E-Invoicing Failure
Following new penalty has been imposed:
| SR No. | Offences | Punishment or Penalties | Competent Jurisdiction |
|---|---|---|---|
|
4B |
Where any person required to integrate or install the Restaurant Invoice Management System (RIMS), Invoice Management or any other prescribed e-invoicing system or computerized system, fails to integrate or install the Restaurant Invoice Management System (RIMS), Invoice Management or any other prescribed e-invoicing system.
|
Such person shall be liable to pay a penalty of Rs 200,000 or 5% of the tax involved, whichever is higher, for each instance of non-compliance.
|
Officer of the Authority competent under this Act.
|
This emphasizes KPRA’s continued digitalization drive and enforcement of e-invoicing integration.
Appeals Reorganized – Pecuniary Jurisdiction Introduced
The KPFA introduces pecuniary thresholds to streamline the appellate process:
| Forum of Appeal | Value of assessment of Tax |
|---|---|
|
Collector (Appeals)
|
Not exceeding Rs 5 Million
|
|
Appellate Tribunal
|
Exceeding Rs 5 Million
|
Cases pending before the Collector (Appeals) involving assessments above Rs. 5 million shall automatically stand transferred to the Appellate Tribunal effective July 10, 2025, which is required to decide such cases within six months of transfer.
Recovery of Arrears – Now Needs Collector’s Approval
Previously, an Assistant Collector could recover arrears of tax using coercive measures. The KPFA now conditions such recovery on prior approval from the Collector or an officer duly authorized by the Collector, a step toward procedural safeguards and accountability.
Inter-Agency Data Sharing Authorized
Taxpayer information in KPRA’s electronic systems remains confidential but may now be shared with the FBR and other provincial tax authorities through reciprocal or multilateral data-sharing agreements, subject to prescribed safeguards and limitations. This amendment strengthens inter-agency coordination and promotes uniform enforcement across jurisdictions.
Conclusion
The KP Finance Act, 2025 modifies KP’s sales tax manner around a negative-list regime, a broadened, technology-agnostic definition of “service,” and a steady 15% standard rate, complemented by targeted higher/lower rates in the restructured Second Schedule.
Compliance now turns on precise classification and conditions: test every offering against the First Schedule exemptions, confirm the correct rate under Part I/II of the Second Schedule, and treat CPC/HS codes as administrative guides rather than determinants of taxability.
Tightened mechanics also matter: enforce the per-person, per-period cash ceiling of Rs. 50,000 (inclusive of tax) for input admissibility; maintain reconcilable, province-wise records for cross-border service providers; and integrate e-invoicing (RIMS/IMRS) to avoid the new penalty of Rs. 200,000 or 5% of tax per instance.
Dispute resolution and enforcement have been recalibrated, with pecuniary thresholds streamlining appeals, recovery actions gated by Collector approval, and expanded data-sharing with FBR and other provinces. Practically, taxpayers should complete a rapid “readiness sweep”: update contracts and invoices to the new service scope, refresh rate matrices and exemption controls, harden POS/e-invoicing integration, and align internal cash-payment controls, while considering the September 30, 2025 window for settling specified arrears without additional penalties. Early housekeeping reduces friction, protects credits, and positions businesses to operate with confidence under the KPFA 2025 framework.
KP Finance Act 2025 — FAQs
Q1. What is the central change introduced by the KPFA 2025?
Khyber Pakhtunkhwa has adopted a negative-list regime for KP Sales Tax on Services: all services are taxable unless expressly exempt in the First Schedule. The standard rate remains 15%, with select services taxed at higher or reduced rates under the Second Schedule.
Q2. How has “service” been redefined?
“Service” is now activity-based and technology-agnostic. It covers contractual, professional, and digital/online delivery and remains a service even where goods are used essentially or incidentally.
Q3. Do CPC/HS codes decide taxability?
No. Codes may be notified for administration/classification, but taxability flows from the Act and Schedules, not from code presence or absence.
Q4. What happened to the old positive list?
Replaced. The First Schedule now functions as a Negative List (non-taxable services subject to conditions). Anything not listed, or not meeting conditions, is taxable.
Q5. Who may act as a “collection agent”?
Beyond SBP/scheduled banks, any person or class declared by the Policy Board can be appointed to charge and collect tax on specified services.
Q6. How does the KPFA treat employee services?
A. Only services provided under a direct employment contract fall outside “economic activity.” Fees/commissions earned beyond that contract, or services for third parties on an employer’s behalf, are taxable.
Q7. Can KPRA de-register someone who should not be registered?
Yes. The Management Committee may de-register such persons in line with Regulation 12 of the 2024 Regulations.
Q8. Where do I verify exemptions?
The First Schedule (Negative List). Exemptions are conditional (e.g., student hostels, specified public services, basic research, libraries, certain small traditional trades). If conditions are not met, tax applies.
Q9. Which services are above/below 15%?
Part I of the Second Schedule lists above-standard rates (e.g., many telecom services at 19.5%). Part II lists reduced-rate services (often without input tax adjustment). Always check the precise entry and conditions.
Q10. Are wholesale/retail sales exempt as services?
Yes, where goods are sold in the seller’s own name. No, where activity is commission/agency/platform-based, or where delivery or ancillary services are performed, these are taxable services.
Q11. How are “dhaba” restaurants and small launderers treated?
Many have specific reduced rates or conditional relief (e.g., non-AC, small premises, vintage equipment). If criteria fail, standard rules apply.
Q12. What changed for input tax on cash payments?
The Rs. 50,000 ceiling (inclusive of tax) now applies per supplier per tax period (not per transaction). Exceeding it in cash with any single supplier blocks input credit.
Q13. What are the record-keeping expectations for multi-province providers?
Maintain separate, reconcilable records enabling determination of KP-attributable liability for services provided outside KP.
Q14. Is e-filing mandated? What about revised returns?
Yes. E-filing is now statutory. The revised return window is reduced to 120 days from the original filing date.
Q15. Are e-invoicing systems required for hospitality/food services?
Yes. RIMS/IMRS (or other prescribed e-invoicing) must be integrated. Non-integration attracts the new penalty.
Q16. What is the penalty for failing to integrate e-invoicing?
Rs. 200,000 or 5% of the tax involved (whichever is higher) per instance.
Q17. How are appeals structured?
Collector (Appeals): up to Rs. 5 million; Appellate Tribunal: above Rs. 5 million. Cases above Rs. 5 million pending with the Collector transfer to the Tribunal from 10 July 2025, with a six-month disposal target.
Q18. What changed in recovery?
Coercive recovery now requires prior approval by the Collector (or an authorized officer), strengthening due process.
Q19. Can KPRA share taxpayer data?
Yes, under reciprocal/multilateral data-sharing arrangements with FBR and provincial authorities, subject to confidentiality safeguards.
Q20. How are telecom and internet-based TV treated?
Broad telecom/allied services are at 19.5% (Part I), with detailed headings. ISP-delivered TV where listed falls under telecom.
Q21. Restaurants/hotels: do card payments affect rate?
Where specified in clarifications, 6% without input may apply for card/mobile wallet/QR payments; cash generally attracts standard rate, unless a reduced-rate entry applies.
Q22. Are takeaway/home delivery covered as restaurant services?
Yes. Explicitly included.
Q23. How are construction/land development taxed?
Multiple reduced/fixed treatments (often without input) with express exemptions (e.g., certain ADP/PSDP/low-cost housing). Review each sub-entry and conditions.
Q24. E&P/mining: what’s taxable?
Services related to E&P/mining are generally taxable (often at standard rate). Lease/license fees and royalties received by government bodies are taxed on a receipt basis.
Q25. Professional/advisory services, what rates apply?
Many non-corporate professional services are at reduced rates without input; corporate entities typically revert to standard 15%.
Q26. Ride-hailing, online marketplaces, call centres, how treated?
Generally listed in Part II at reduced rates without input, subject to headings and conditions. Platform-facilitated intermediation is taxable.
Q27. Is there relief for past non-charging (July 2022–June 2025)?
Yes. Providers taxable under old Serial No. 1 of the Second Schedule who omitted to charge may pay principal arrears without additional penalty/default surcharge, subject to conditions and full payment by 30 September 2025. Cases initiated under sections 27/60 before 1 July 2025 may settle on principal tax only, per the stated conditions.
Q28. What should businesses do now?
(i) Map services to the new scope; (ii) test First Schedule conditions; (iii) confirm rates under Second Schedule Parts I/II; (iv) enforce the per-supplier Rs. 50,000 cash cap for input eligibility; (v) segregate KP records; (vi) integrate RIMS/IMRS; and (vii) utilise the 30 Sept 2025 arrears concession where applicable.
