In Pakistan, businesses are required to register for GST if their annual taxable supplies exceed a certain threshold. The exact threshold at which a business is required to register for GST depends on the type of business and the location of the business.
For example, businesses with annual taxable supplies of more than PKR 4 million (approximately $25,000) are required to register for GST in Pakistan. However, this threshold is higher for businesses located in certain areas, such as Azad Jammu and Kashmir or Gilgit-Baltistan.
In addition to the annual turnover threshold, there are other circumstances in which a business may be required to register for GST in Pakistan, even if its annual taxable supplies do not exceed the threshold. These circumstances include:
- If the business is a manufacturer of taxable goods
- If the business is an importer of taxable goods
- If the business is a commission agent
- If the business is an agricultural tractor dealer
- If the business is a registered charity or non-profit organization
It is important to note that GST registration is voluntary for businesses whose annual taxable supplies do not exceed the threshold. However, these businesses may still choose to register for GST in order to claim credits for GST paid on their purchases.