FBR has introduced a new framework for electronic scrutiny of sales tax returns through SRO 1655 of 2026, inserting Chapter XII-A into the Sales Tax Rules, 2006. Under the new mechanism, the system will electronically analyses and cross-match sales tax returns with other available information relating to registered persons.
Where the system identifies a factual or legal discrepancy, the taxpayer will first receive an electronic intimation through IRIS. Importantly, the procedure provides an opportunity to explain or rectify the discrepancy before legal or penal proceedings are initiated. The taxpayer must be allowed at least seven days to respond, and a reminder is to be issued where no response is received.
This development reflects a broader shift from conventional manual scrutiny towards data-driven tax administration. For registered persons, the practical implication is that consistency between sales tax returns, invoices and other information available with FBR is becoming increasingly important. The dedicated dashboard will also maintain a record of intimations, taxpayer responses and subsequent actions, creating an electronic trail of the entire scrutiny process.