FBR sales tax e-scrutiny: SRO 1655 gives you 7 days to fix errors flagged on IRIS

The Federal Board of Revenue (FBR) has put a computer in charge of the first read of your sales tax return. Under SRO 1655(I)/2026, issued on 27 September 2026, the FBR's system will scan and cross-match returns, flag what looks like a factual or legal mistake, and send you an online intimation through IRIS before any officer opens a case.

If you are registered for sales tax, the practical effect is simple: watch your IRIS inbox, because you now get at least 7 days to explain or fix an error, and a second 7-day window after a reminder.

What the SRO changes

The notification amends the Sales Tax Rules, 2006 by adding a new Chapter XII-A, titled "Procedure for Electronic Scrutiny and Intimation of Issues Detected by the Computerised System". In plain terms:

• The FBR's computerised system runs automated scrutiny, analysis and cross-matching of sales tax returns and related data under the Sales Tax Act, 1990.
• When it finds a possible factual or legal mistake, it sends an online advice or advance intimation through IRIS.
• You get a minimum of 7 days to respond: explain the figure, or correct it.
• If you do not respond, a reminder follows with another minimum 7 days.
• After that, the Inland Revenue officer concerned examines your reply and decides what action, if any, to take under the Act and rules.
• Every discrepancy, intimation and reply is recorded on the system's dashboard for the officer.

Why it matters for a small business

Most sales tax trouble starts with a mismatch, not fraud: input tax claimed on an invoice your supplier never declared, a return that does not match your withholding statements, or a typo in a buyer's NTN. Until now those mismatches often surfaced as a show-cause notice. The new chapter puts a warning step in front of that, which is an opportunity if you act on it and a risk if you ignore it, since silence after the reminder leaves the decision to the officer.

It fits the FBR's wider move to deal with taxpayers online. Earlier this week the FBR shifted audit notices and hearings to its faceless audit system on IRIS, with no in-person meetings.

What to do now

1. Check IRIS regularly. Log in at iris.fbr.gov.pk and open your inbox and the notices section, not only your email. If you are new to IRIS, our IRIS registration and filing guide walks through it.
2. Reply inside 7 days. Treat the first intimation as the deadline, not the reminder.
3. Keep invoices ready. Most intimations will come from cross-matching, so have your purchase invoices, supplier NTNs and payment records to hand.
4. Correct genuine mistakes. If the system is right, fix the return rather than arguing it.
5. Get your numbers right before you file. Our sales tax calculator works out tax-inclusive and exclusive amounts at the standard rate.

Key dates

• 27 September 2026: SRO 1655(I)/2026 notified, adding Chapter XII-A to the Sales Tax Rules, 2006.
• 30 September 2026: income tax return deadline for individuals, a separate obligation that still stands.