November 29, 2021

CNIC Misreporting Not A Finable Offense Anymore: FBR

Amid the protest of the suppliers regarding the fines imposed due to misreporting issues of the CNIC number of the buyers, the FBR has introduced an amendment to the law that imposes fines to the suppliers in misreporting of CNIC cases. According to the amendments made, the FBR has deemed the CNIC misreporting as a non-objectionable offense. Therefore, fines will not be imposed in such cases anymore. The traders had complained that they had no mechanism to authenticate the information being provided by the buyer and hence misreporting of CNIC by the buyer used to land the suppliers in hot waters.

The FBR has said that, “The CNIC or NTN of the buyer concerning taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the supplier.” The FBR further added in their statement that, “ The step has been taken keeping in view the problems reported by the registered persons in ensuring proper identity of the buyer to fulfill the requirement of reporting NTN/NIC of the buyer in terms of Section 23 of the Sales Tax Act 1990.” According to the Sales Tax Act 1990, the supplier was to be penalized for any misreporting of the CNIC/NTN number. This will not be the case anymore and the suppliers would not be fined for incorrect CNIC based invoices.


Earlier, the traders had companied in front of the COAS to the economic team of the government, regarding the matter and had claimed that not even a single buyer is willing to provide his/her CNIC number for purchases. They argued that even if they provide the CNIC number, it is either incorrect or belongs to their subordinates. Analysts were expecting this move because the government had to provide some slack to the traders as decades-old practices could not be changed within a matter of weeks.

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