FBR to receive GST on services in KP

Monday, June 25, 2012 - Peshawar—Government of Khyber Pakhtunkhwa has decided to delegate the prerogative of receiving General Sales Tax (GST) on Services again to the federal government.

The provincial governments who have excused from receiving GST on services have the stance that the provinces do not have the capacity of receiving GST.

Now Federal Board of Revenue (FBR) has the powers of receipt of GST on Services.

After the 18th amendment, the powers of receiving GST on Services were assigned to the four provincial governments.

Excise department was being asked to receive GST imposed on services, and the excise department had hired staff for this purpose.

However, sources from finance department said three provincial governments including the government of Khyber Pakhtunkhwa pardoned from receiving GST on Services.

According to the budget of Khyber Pakhtunkhwa approved for the year 2012-13, the provincial government was expecting to receive Rupees 9,98,6394000 on account of GST on Services, however, it will face a deficit after its excuse to receive the GST.

FBR will also provide a certain share of its receipts from the GST on services to the provincial government.