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Pak Suzuki Lands in Trouble for Charging Excess GST Illegally

Pak Suzuki Motor Company (PSMC) has landed in trouble as the authorities have issued a decision against the company in a recent General Sales Tax (GST) collection case, reported

According to details, the Federal Tax Ombudsman (FTO) has requested the Federal Board of Revenue (FBR) to ensure that Pak Suzuki returns the amount of GST collected from vehicle buyers over the predetermined rate of 12.5 percent announced in the recent auto policy.

The GST rate for vehicles, prior to the introduction of the new auto policy, was 17 percent. As per official documents, some customers had bought vehicles from authorized Suzuki dealerships after the enactment of the new policy on July 31, 2021, whereby the GST rate was officially reduced to 12.5 percent. Yet, the purchase invoices of the customers still showed that the company had been charging GST from the customers at the same old rate of 17 percent. Despite appeals from the customers seeking a refund in light of the new policy, the automaker did not return the excess amount.

The issue caught the attention of FTO. Now, it has been taken up with FBR to hold the company accountable for its questionable profiteering tactics.

As per the official notice, the authority has issued a verdict that Pak Suzuki will have to return the excess GST amount to its customers within 45 days. The company will be subjected to legal action if it fails to comply.

  • I am also charged 17% sales tax by pak suzuki motor company limited. Invoice #21053726, dated 14/07/21.I booked Alto AGS 658 cc in April 2021. Despite of reduced rate 12.5%, invoice made at 17% sales tax.
    I got favor of 2.5% FED waived off only.
    Please do some favor to submit my case.

    Mirza Muhammad Yasir

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