FBR Guidelines for Input and Output Tax Adjustment: Key Points and Timeframe for Compliance

FBR unveils mechanism for adjustment of input and output tax under sales tax laws for 2025
Adjustment process covers cancelled or returned supplies, changes in tax amounts, and issuance of credit or debit notes
Buyers cannot claim input tax for cancelled, returned, or reduced tax supplies
Suppliers must adjust output tax if debit notes are issued after reporting output tax
Adjustments must be based on credit or debit notes issued within 180 days, with possible extension by Collector
Special rules for perishable items and resupply of goods
Emphasis on issuing debit or credit notes promptly and adhering to specified timelines for tax adjustments.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.