ISLAMABAD, June 10: The government has levied 15 per cent general sales tax (GST) on import of cheque books and similar documents of title.

The decision was taken through the finance bill 2003-04 by amending the sixth schedule to the sales tax act, 1990, which were earlier exempted from the levy of the GST.

Similarly, the 15 per cent GST was withdrawn on liquid milk without sugar or any other sweetening matter whether packed or not. However, the customs exemptions was withdrawn on milk preparations falling under chapter 19 of the first schedule to the customs act 1969.

Under the SRO 503, the government allowed input adjustment on purchase of appliances for taxable activity, wires and cable for industrial purposes and crockery, cutlery and utensils purchased for providing taxable services.

The refund rules have been amended through budgetary SRO502 to sanction in full the amount of refund claimed by claimants of computerised, gold and silver category within the time prescribed for them for 50 per cent of the claim in SRO575 of 2002.

Under the budgetary SRO, the manufacturers-cum-exporters have been allowed to skip stock statement with each refund claim they were consuming raw materials inputs as per calculations by the IOCO, custom house, Karachi.

Through the budgetary SRO 503, the government has also exempted sales tax on generating sets above 250 kva. Presently, import of generating sets above 250 kva, for use in the taxable activity, was not allowed to avail SRO987 issued on August 30, 1999.

The government superseded the SRO 215 of 2001 by budgetary SRO 507 under which the goods manufactured by consuming raw materials, parts, sub-components and components imported under various concessionary notifications issued under section 19 of the customs act or under section 13 of the sales tax act would not be supplied to any person, who was not registered or enrolled and if such supplies made, the importer should not be entitled to reclaiming or deducting input tax in respect of such imports.

According to the notification, section 7 of the sales tax has been amended under which adjustment of further tax against output tax has been disallowed.

Under the new amendment, further tax charged on supplies has to be deposited along with return for the tax period. The definition of retailer has been amended by excluding the words “not being a manufacturer or producer or an importer.” However, certain conditions have been laid down therein for the persons who combine any other business with retail.