SNGPL barred from collecting GST on non-functional meters

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Rawalpindi: Justice Ijaz Ahmad of the Lahore High Court (LHC), Rawalpindi Bench, on Tuesday stopped the Sui Northern Gas Pipelines Limited (SNGPL) from collecting general sales tax (GST) from non-functional gas meter households. Petitioner Muhammad Munir Raja and twenty others of Scheme-III, Rawalpindi, through their counsel Advocate Raja Siamul Haq Satti, adopted before the court that their gas meters were non-functional but the SNGPL has been receiving GST from them.

Citing the Federation of Pakistan through the Federal Board of Revenue chairman and the SNGPL chief executive officer as respondents, the counsel stated that the collection of GST is linked to the provision of natural gas. As there was no supply to these gas meters, so the collection of GST was unjust and unfair. The SNGPL is a private limited company. It could collect GST from consumers and could not levy tax.

The court stopped the SNGPL from receiving the GST from non-functional gas meter households and directed the SNGPL to refund the amount within one month.

 

Courtesy: The News