Overview

FBR recognizes several sale types, each with different tax implications. Selecting the correct sale type is critical for valid invoices.

Sale Types Explained

• Standard Rate (18%): The default GST rate for most goods and services in Pakistan. If unsure, this is usually the correct choice.
• Reduced Rate: A lower GST rate applicable to specific items as notified by FBR through SROs (Statutory Regulatory Orders).
• Zero Rated: 0% tax rate. Applied to exports, supplies to diplomats, and items in the Fifth Schedule of the Sales Tax Act.
• Exempt: Items completely exempt from sales tax under the Sixth Schedule. No tax is charged or collected.
• Further Tax: An additional 3% tax charged on supplies to unregistered persons (buyers without NTN). This is in addition to the standard 18% GST.
• Extra Tax: Additional tax as specified by FBR notifications for specific sectors or items.
• Fixed/Notified Value: Tax is calculated on a notified/fixed value set by FBR, not on the actual sale price. Used for specific items like petroleum products.
• Retail Price: Tax calculated on the maximum retail price (MRP) printed on the product. Used for specific consumer goods.