Updated after Finance Act 2024
The Finance Act 2024 made limited changes to the GST exemption regime under the Sixth Schedule of the Sales Tax Act, 1990. This article covers only the changes made the Sixth Schedule that became applicable for the tax year 2024-25.
Important Note
The content of this blog is applicable for only FY 2024-25. We are retaining it for just historical referencing.
We also published a dedicated blog on the current GST exempted goods and supplies in Pakistan. It covers all the exemption in details.
New exemptions of local supplies and imports in Finance Act 2024
The Finance Act 2024 added the following exemptions in Table 2 of the Sixth Schedule:
- Milk excluding (1) sold under a brand name and (2) supplied by corporate dairy farms.
- Iron and steel scrap excluding (1) supplies made by manufacturer-cum-exporters of recycled copper authorized under the Export Facilitation Scheme 2021 and (2) supplies made directly to registered steel melters under prescribed conditions.
These supplies became exempt from sales tax through the insertion of new serial numbers in Table 2 of the Sixth Schedule.
Further extension in GST exemption in Finance Act 2024
he Finance Act 2024 extended the following exemptions:
Tribal Areas
The exemption available on the import and supply of specified goods and machinery for industries located in the merged tribal districts was extended up to 30 June 2025.
Supply of Electricity in Tribal Areas
The exemption on the supply of electricity to eligible consumers and industries in tribal areas was also extended up to 30 June 2025.
No Major Changes in Exempt Imports
No significant new exemption was introduced in Table 1 for imports and general supplies through the Finance Act 2024. Most exemptions under Table 1 remained unchanged from the preceding year.
Disclaimer
The content of this blog is only for informational purposes. For making any decision, readers should refer to the original text of the Sales Tax Act, 1990 and consult a qualified accountant or tax consultant. ConSerIC Accountants is not responsible for any decision taken on the basis of this article.
Legal References
- Finance Act 2024
- Sales Tax Act 1990 (Updated up to 30th June 2024)
- Relevant SROs and Notifications
