April 06, 2023 (MLN): In a significant move towards harmonizing the Goods and Services Tax (GST) across the country, the National Tax Council (NTC) has approved the recommendations of the Executive Committee regarding the draft Place of Provision of Service Rules.
This decision is a major milestone towards achieving the prior actions for the World Bank-funded RISE program.
The Place of Provision of Service Rules, which will take effect from May 01, 2023, after approval by the respective provincial cabinets, will go a long way in streamlining the GST system in the country.
The rules will ensure that the place of provision of services is determined in a consistent manner across all provinces and territories, thereby reducing confusion and ensuring clarity for taxpayers.
During the meeting, the NTC also decided to exclude electric power transmission from the list of goods for which the Sales Tax Act is required to be amended through the Finance Bill.
This decision will take effect from July 01, 2023.
The meeting was chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.
He also appreciated the efforts of all stakeholders for their efforts in building consensus and for the settlement of the harmonization of GST in the country.
