To curb harassment of taxpayers and streamline the movement of goods, the Federal Board of Revenue (FBR) has announced that transferring goods from a factory to a registered person’s own warehouse under the same Sales Tax Registration Number (STRN) would not be treated as a taxable supply.
asserted
transferring → curb → supply
As a result, inter-premises movement of goods also does not require the issuance of a digital invoice.
asserted
movement → require → invoice
However, consignments must be accompanied by a prescribed Stock Transfer Note (STN), clearly endorsed “Stock Transfer — Not a Taxable Supply”, in accordance with Sales Tax General Order No. 25 of 2026, issued on Monday.
asserted
consignments → accompany → Monday
Under Section 2(33) of the Sales Tax Act 1990, a ‘supply’ requires a change of ownership or consideration.
asserted
supply → require → ownership
Since goods moving between a factory and warehouse of the same registrant involve no sale, they fall outside the charge of sales tax.
asserted
they → move → tax
However, where the receiving warehouse holds a separate STRN, the movement will be treated as a taxable supply, mandating issuance of digital invoicing and output tax.
asserted
movement → receive → invoicing
To prevent mischaracterisation during transit checks, the FBR has laid down detailed standard operating procedures (SOPs) governing the movement of goods between a factory and a registered person’s own warehouse, clarifying that such transfers are not taxable supplies.
asserted
transfers → prevent → factory
Federal Board of Revenue stops harassment of goods carriers
asserted
Board → stop → carriers
As per SOPs, despatching units must generate a sequentially numbered Stock Transfer Note, endorsed prominently as “Stock Transfer — Not a Taxable Supply.”
asserted
units → despatch → Transfer
The value of goods is to be recorded strictly at cost for inventory control, without resembling a tax invoice.
asserted
value → record → invoice
The STN must accompany consignments at all times during transit and be produced on demand at any checkpost.
asserted
STN → accompany → checkpost
Upon receipt, the warehouse manager must acknowledge the consignment and update the warehouse stock register, while the factory must correspondingly update its own records under Rule 22.
asserted
factory → acknowledge → Rule
In case the receiving warehouse holds a separate STRN, the movement will be treated as a taxable supply.
asserted
movement → receive → supply
In such cases, the despatching unit must issue a digital invoice through the licensed integrator or PRAL, account for output tax, and reflect the transaction in the sales tax return.
asserted
unit → despatch → return
The STN procedure cannot substitute for invoicing in these circumstances.
asserted
procedure → substitute → circumstances
The order further instructs field formations not to treat an STN as noncompliance when both premises share the same STRN.
asserted
premises → instruct → STRN
Conversely, any consignment moving without either a tax invoice or a STN will be deemed prima facie undocumented and proceeded against under the law.
asserted
consignment → move → law
The order also directs field formations to avoid unnecessary harassment.
asserted
order → direct → harassment
Officers are barred from demanding CNICs of drivers or detaining vehicles without proper cause.
asserted
Officers → bar → cause
Goods in transit are not to be physically checked or unloaded, except for items listed in the Third Schedule, which may be inspected solely to verify retail price embossing.
uncertain
which → check → embossing
“Harassment of taxpayers, in any form or manner, is highly objectionable and shall not be tolerated,” the directive warns, adding that any departure from these instructions will be viewed seriously.
asserted
departure → tolerate → instructions
The Aporia
