A useful clarification has been issued for businesses operating factories and warehouses under the same Sales Tax Registration Number (STRN). Through STGO No. 25 of 2026, FBR has clarified that movement of goods from a factory to the registered person’s own warehouse under the same STRN does not constitute a taxable supply. Accordingly, no output sales tax arises and a digital/e-invoice is not required for such internal movement.
The reasoning follows the concept of “supply” under section 2(33) of the Sales Tax Act, 1990. Since an internal transfer does not involve a change in ownership or consideration, the charging provisions of section 3 and the tax-invoice requirement under section 23 do not apply. However, businesses must still document the movement through the prescribed Stock Transfer Note (STN) and maintain corresponding factory and warehouse stock records.
An important distinction should not be missed: where the receiving premises operate under a separate STRN, the movement will be treated as a taxable supply and normal digital invoicing and output-tax requirements will apply. The clarification therefore provides practical relief for multi-location businesses while reinforcing the importance of proper documentation for internal stock movements.