14th  September, 1999


In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, the Federal Government is pleased to make the following rules, namely:-


1.      Short title, application and commencement : (1)    These rules may be called the Special Procedure for Supply of Food Rules, 1999.


(2)    These rules shall apply for collection and payment of Sales Tax on foods, drinks, and other eatables supplied by hotels, restaurants, clubs, caterers, parlours, kitchens and other such similar establishments, whether for consumption inside the premises of such establishments or for supply for outside consumption or use.


(3)    They shall come into force at once.


2.      Definitions :(1)    In these Rules, unless there is anything repugnant in the subject or context : —


(a)    “Act” means the Sales Tax Act, 1990;


(b)    “caterer” means a person or establishment, by whatever name called, which in ordinary course of business supplies foods, drinks and other eatables in any mode or manner or on any occasions, whether or not it provides entertainment or supplies furniture or crockery and cutlery, or ornamental or decorative accessories or lighting for illumination, on hire, lease or for any other consideration;


(c)    “club” means an establishment, organization or place, other than a hotel or restaurant, the membership of which is restricted to a particular class of people or which is run on the basis of mutality and supplies foods, drinks or other eatables, whether or not it has any arrangement for boarding, lodging or games;


(d)    “Daily Gross Take (DGT)” means the total value of supply received during each day and includes the amount of tax;


(e)    “Fiscal Electronic Cash Register (FECR)” means an electronic cash register with fiscal memory (black box), fiscal screw and seal and capability to simultaneously print second copy (record copy) containing all information in addition to that on the first paper roll (customer copy) and having two displays, one for operator and the other for customer.


(f)    “food” includes baked, cooked, prepared or fresh food, ice-cream, beverages or drinks, whether alcoholic or otherwise, and other eatables, whether prepared by the person supplying the same or other wise procured from others;


(g)    “hotel” means an establishment, organization or place where rooms, suites of rooms, or halls or any other such premises are let out on rent, and it also supplies food;


(h)    “kitchen” includes a flight kitchen and means an establishment, organization or place where food is prepared and supplied on board any aircraft, ship, bus, wagon, railway train or any other means of transportation irrespective of the fact whether the kitchen is owned by the person operating the conveyance or not;


(i)    “person” includes a caterer, hotel, restaurant, club, parlour, kitchen, kiosk or such other establishment or organization making supplies of food; and


(j)    “restaurant” means an establishment, organization or place by whatever name called, supplying food consumed in that premises or catered outside or supplied as take-away, whether or not it provides any other services, facilities or utilities and includes a club, marriage hall or establishment meant for holding ceremonies where food is supplied on such ceremonies.


(2)    All other words and expressions used, but not defined herein, shall have the meanings assigned to them in the Act.


3.      Levy and Collection : (1)    Every person supplying food, in or from the premises of clubs, caterers, kitchens, hotels or restaurants shall be liable to charge and pay sales tax at the rate specified in sub-section (1) of section 3 of the Act irrespective of the fact whether food is consumed in that premises or supplied or catered outside or supplied as take-aways.


(2)    The taxable supplies made by the said person shall not be subjected to the further tax leviable under subsection (1A) of section 3 of the Act.


(3)    Every such person, whose total annual turnover exceeds rupees two and a half million during the last twelve months, shall be liable to registration and shall get himself registered under the Act, if not already registered.


(4)    The sales tax on food served in a tax period shall be calculated in accordance with the following formula, namely :

Amount of sales Tax =

Total value of supply due from consumer or recipient of food

    x    Rate of Sales tax

100 + rate of sales tax


(5)    Every person shall submit the monthly return as prescribed in the Act. The tax due alongwith monthly return shall be deposited in the Government Treasury under the relevant head “0220000-Sales Tax” by the 15th day of the month following the month in which supplies were made;


Provided that in respect of supplies made by clubs, the date shall be 15th day of the second month following the month in which supplies were made by the club.


(6)    If the supplies are made free of charge or for some other consideration or a consideration which is lower than the listed prices, the sales tax shall be charged as if it were supplied at the price listed in the menu card in terms of sub-clause (a) of clause (46) of section 2 of the Act.


(7)    Such person shall be entitled for input tax credit for the tax paid on his purchases or utilities consumed for preparation or supply of food against output tax payable subject to the limitations and restrictions imposed under section 8 of the Act or the notifications issued thereunder; Provided that the input tax credit shall only be admissible for amount of tax which was paid on the purchases made during that tax period for which return is being submitted.


(8)    Where the said person is engaged in making taxable supplies as well as exempt supplies, the input tax credit shall be allowed as per the Apportionment of Input Tax Rules, 1996.


4.      Record keeping and invoicing : (1)    Every person shall print, in his menu card or list of food items to be supplied, the price of each item or combination of food, as the case may be, intended to be supplied or sold by him which shall include price of the food and all duties and indirect taxes, local Provincial and Federal, including also the sales tax. The recipient or consumer of food shall be invoiced or billed to pay only the price shown in the menu card or the price list.


(2)    The food supplied by flight-kitchens to the conveyances leaving for a destination outside Pakistan shall be zero-rated in accordance with clause (b) of section 4 of the Act. The Collector of Sales Tax, may through a general or a special order, prescribe special procedure for issuance of invoice or bills by flight kitchens whether for consumption on domestic flights or for foreign bound flights.


(3)    The registered persons shall issue a serially numbered sales tax Invoice or bill starting with 0001 on first day of every financial year or commencement of business, in the format given in Annex-I to these rules. The persons using in their business a Fiscal Electronic Cash Register (F.E.C.R) or a computerized accounting system may, with prior permission of the Collector, issue the fiscal ECR-generated or the computer-generated sales tax invoice and computerized Cash Memo in the format and manner so approved by the respective Collector of Sales Tax.


(4)    The persons opting for generation and issuance of Sales Tax Invoice or bills on Fiscal E.C.R. or a computer shall retain their record electronically as required under sub-section (3) of section 22 of the Sales Tax Act, 1990.


(5)    At the end of each business day the hotel, restaurant, club, caterer, kitchen, parlour or any other person registered under these rules shall keep a record of their Daily Gross Take (DGT) showing, where applicable, any zero-rated or exempt supplies separately.


Annex “A”


[See rule 4(3)]


Sales Tax Registration No. _____________

CTI No., if any ____________


M/s. NAME & ADDRESS OF SUPPLIER OF FOOD ___________________________


Book No. _______________

Invoice No. ____________________

Table/Room No. _________

Date __________ Time ___________




S. No.



Rate (Rs.)

Amount Charged (Rs.)


















Total :                                               





Signature of authorised person


NB: This invoice/bill includes amount of sales tax.


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