Objective and Agenda:
To understand the procedure of registration under GST in Singapore. The webinar shall dwell upon other aspects like threshold limit for GST registration, due dates for filing return, benefits and limitation of GST etc. Further it would provide insights on penalty for non compliance, audit requirements and GST schemes introduced to help businesses.
1. GST in Singapore
Dr. CA. Nabeel Ahmed B.com, ACA, CMA, AICWA, AIA, MBA, Ph.D
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com
2. Presentation Schema
Introduction to
GST
Taxable and non
taxable goods
and services
GST registration
Benefits and
limitations
Steps to acquire
GST registration
GST filing due
dates
Tax audit Penalties
GST Schemes to
help business
3. Introduction to GST (Goods & Service Tax)
What is GST Effective from? Tax rate? Who are taxed??
Consumption tax
applied on supply
of goods and
services and import
of goods.
The current rate of
GST is 7%.
Charged on the end
customers.
Businesses act as a
collective agent on
behalf of Singapore
Tax Department
Introduced in
Singapore with
effect from
01.04.1994.
4. Taxable and Non Taxable Goods and Services
Taxable Supplies Non Taxable Supplies
Standard rated
supplies- 7%
Zero Rated Supplies
0 % GST
Exempt Supplies Out of Scope
Supplies
Goods Most local sales Export of Goods Sale and rental
unfurnished
residential property
Importation and
local supply of
investment precious
metals
Sale where goods
are delivered from
overseas to another
place overseas
Private transactions
Services Most local provision
of services
Services that are
classified as
international
services
Financial Services.
Eg Issue of a Debt
security
Exchange of
currencies
5. GST registration
Who is eligible under GST
Compulsory
registration
Voluntary
registration
Once registered
• Remain registered
for at least 2 years.
• Maintain Books for
at least 5 years.
Turnover>S$1 Million In
past 12 month (
Retrospective view). Or
Turnover>S$1 Million In
next 12 month
(Prospective view).
Entities registered under GST must
• Maintenance of proper business
records
Must charge appropriate amount
of tax on the products
Report GST charged and GST
paid to government on regular
basis
6. Contd
Exemption
from
registration
Businesses making zero rated supply can
apply for exemption.
IRAS will approve exemption, if more
than 90% of taxable supplies are zero
rated and input tax is greater than
output tax
Registration can be cancelled upon
• Cessation of business or
• Sale of business or
• Sales does not exceed 1 million SGD
De-
registration
Unless businesses are registered, they are not required to
collect GST.
7. Benefits and Limitations
• Stable and predictable tax
income.
• GST allows government
reduces Corporate and
personal income tax rates.
• Contributes to economic
growth.
• Efficient tax due to low cost of
admiration and collection
• Once registered, it signals
customers that the business is
established and has certain
size.
• GST tax consumption, not
savings and investment,
thereby encouraging them.
Government Businesses
Benefits
8. Contd
Increases
administrative
burden
High cost to pay
for an accountant
or tax an expert
If not registered,
businesses could
not avail input,
thereby increasing
cost
Burden to lower
income groups
during high
inflation period
Limitations of GST
9. Steps to acquire GST registration
Determine
the type of
registration
Complete e-
learning
course (For
Voluntary
registration)
Submit your
application
Processing of
application
Grant of
registration
11. Complete e-learning course (For Voluntary
registration)
For voluntary registration, the company director/ sole-proprietor/ partner/
trustee/ preparer of GST returns must complete two e-Learning courses –
• " Registering for GST" and
• " Overview of GST" –
and pass the quiz
Not required when
Already has the experience in
managing GST of any other
business
Person who prepares GST
returns is Accredited tax
adviser or Practitioners
The business is applying to be
registered under the
Overseas Vendor Simplified
Pay-only Registration Regime
13. Submit your application
All applications for GST registration are to be submitted via
my tax portal
All the requisite
supporting documents
shall be attached at the
end of the application
process.
Note
Businesses registering on
voluntary basis can to be on
GIRO plan.
The original application of
GIRO plan should be sent to
IRAS.
GIRO Plan?
General Interbank Recurring Order (GIRO) is an automated
electronic payment service which allows you to make monthly
payment to the billing organization (BO) from your bank account
directly.
One must also be
authorized in Corppass
by the business to be
able to access GST
registration.
15. Processing of application
Generally IRAS would
take 10 working days to
process the application.
IRAS may request for
additional supporting
documents via mail
Upon approval, a letter of
notification shall be sent
by IRAS to business
GIRO application will be
sent to bank for approval
and it may take 1 - 2
weeks
17. Grant of registration
If the application is successful, a letter will be sent to the registered address
The letter will contain
• GST registration number
• Effective date of GST registration
18. GST filing due date
Without GIRO Plan With GRIO Plan
GST Accounting period Filing and payment due
date
Filing due date GIRO deduction Date
January to March 30th April 30th April 15th May
April to June 31th July 31th July 15th August
July to September 31th October 31th October 15th November
October to December 31th January 31th January 15th February
The deadline to submit the returns is one month from the last date of the special accounting period.
For Eg, If the GST return is for the special accounting period from 5 Apr 2014 to 5 Jul 2014, the due date to
submit your return is 5 Aug 2014
Due dates for special
accounting period
GST F5 return has to be filed on a
quarterly basis.
19. GST audit
Since GST payment is a self
assessment process, IRAS
conducts regular audits to
ensure compliance
To ensure compliance
businesses can adopt IRAS
assisted self help kit (ASK),
to perform their check on
compliance.
Besides ASK, Assisted
Compliance Assurance
Program by IRAS enables
businesses to exercise
necessary controls to
manage GST errors and
omission.
20. Penalties
Late payment penalty
• Initially a 5% penalty.
• Additional 2% penalty will
be imposed for each month
that the tax remains unpaid
(not exceeding 50% of tax
outstanding)
Failure to submit tax return
within due date
• Issue a estimated notice of
assessment and penalty of
5% of estimated tax.
• Impose late submission
penalty
• Summon the business or
person responsible to curt
Some of the
common penalties
are as follows
Late submission of return
Penalty
• Initially S$200 upon upon
non filing of return within
due date.
• A penalty of S$200 will
continue to be imposed for
every completed month till
the maximum of S$10,000.
21. GST schemes to help businesses
Tourist Refund Schemes
Enables to claim refund if
goods are bought out of
Singapore
Gross Margin Scheme
GST is chargeable only on the
gross margin of your goods
Cash Accounting Scheme
Specifically for small
businesses whose annual
sales do not exceed SGD 1
million.
Major Exporter Schemes
To help cash flows of major
exporter
Hand Carried Export Scheme
To treat supply of goods as as zero
rated upon sale to overseas
customer when hand carried out of
Singapore via Changi Airport
Zero GST warehouse scheme
Transform warehouses into
Zero GST warehouses to
minimize red tape and
reduce GST processes
Other industry Specific
scheme
Import of GST deferment
scheme
Allows you to pay GST on
imports when monthly GST
returns are due instead of at
the time of importation
Discounted Sale price
scheme
Allows you to charge 50%
GST on a second hand/ used
vehicle
