The Federal Board of Revenue has introduced a new risk-based and time-bound mechanism for Sales Tax registration through Sales Tax General Order No. 20 of 2026 dated August 24, 2026. Under the revised process, applications filed through IRIS will first be screened through computerized risk parameters. Where an applicant falls within the low-risk category, has submitted all prescribed information and documents, and otherwise fulfils the legal requirements, the concerned Local Registration Office is expected to process the application without unnecessary delay and, as far as practicable, within three working days.
The new mechanism also places restrictions on unnecessary document demands. Field formations have been directed not to seek additional information unless it is specifically required under the Sales Tax Act, 1990 or the Sales Tax Rules, 2006, is needed to verify information already furnished, or arises from a specific computerized risk indicator. If an application is incomplete, the applicant must be informed through IRIS within seven days, with the exact deficiency, the required corrective action and the time available for compliance. Importantly, once the deficiency is rectified, the applicant will not be required to start the registration process again.
For manufacturers, FBR has introduced an additional facilitation layer under which sectoral associations linked with FPCCI may provide pre-registration certification regarding the applicant’s manufacturing activity, identifiable premises and sectoral credentials. However, this certification does not replace statutory verification, and manufacturing concerns may still be physically verified by the LRO. High-risk or suspicious registrations will continue to be subject to enhanced scrutiny. The development therefore reflects a shift from a largely uniform registration process towards a risk-differentiated model, where compliant and low-risk businesses may receive faster treatment while suspicious applications remain subject to deeper verification.