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Eligible exporters list to be finalised: CBR starts 'green channel' sales tax refund system

ISLAMABAD (May 05 2003) : Giving go-ahead signal to the collectorates to start 'green channel' refund system, the Central Board of Revenue (CBR) has directed all Collectors of sales tax and Chief Textile to finalise names of registered exporters for availing new facility of 'fast track green channel' for speedy payment of sales tax refund.

Under 'green channel' concept, the refund would be promptly sanctioned without scrutiny of sales tax invoices.

Chief Textile/Starr would shortly develop a list of registered persons for the purpose of establishment of 'green channel' for processing of refund claims even if the Starr shows that these persons are non-filers of sales tax.

The names of these persons would also be included in the 'green channel' whose documents presented for claiming refunds are not matching with the information available with Starr.

However, collectors would carry out post-sanction audit investigation in such cases where discrepancies are reported by the Starr pertaining to persons given 'green channel' facility.

The CBR has directed the collectors that in future all refund claims, including refund claims pending (wholly or partially) with collectorates for any reason, would be processed through Starr.

The CBR has also initiated criminal proceedings against refund claimants who had filed claims on the basis of fake/flying/fabricated sales tax invoices or invoices issued by the sales tax registered persons who are included in the list of 'suspected persons' or non-filers, nil-filers, de-registered or non-registered persons.

The criminal proceedings against illegal refund claimants and their suppliers shall, however, only be initiated after thorough investigation and approval for prosecution by the Board.

Chief (Textile/Starr) and collectors will also ensure that registered persons in different categories ie manufacturers, importers, wholesalers, distributors and retailers who are suspected to have issued fake/flying invoices by showing higher amount of output tax without any payment of sales tax to the public exchequer would be selected for investigative audit by each collectorate and the reports of audit are also scrutinised by the Chief (Textile/Starr) in order to ensure that a comprehensive audit has been conducted with a view to protecting the legitimate interests of public exchequer;

Chief (Textile/Starr) will also ensure that amendments already suggested including the confirmation of transfer of sale proceeds as per provisions of Section 73 of the Sales Tax Act, 1990 would be made on priority in the software of Starr.

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