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How to correct errors made in GST return?
How do I file GST F7?
Penalties for filing an incorrect return
Timeline to correct errors in past returns
How to correct errors made in GST return?
If you made errors in your submitted GST F5/ F7/ F8, you should file GST F7 to correct the errors.
Concession for correcting errors
However, as a concession, you may choose to adjust for the errors made earlier in your next GST F5 if you meet both of the following criteria:
- The Net GST amount in error* (i.e. output tax error – input tax error) for all the affected prescribed accounting periods is not more than $1,500.
- The summation of non-GST amounts in error^ for (each of) the affected accounting periods is not more than 5% of the total value of supplies declared in the submitted GST return (i.e. Box 4). In the case where there was no supply made in the affected accounting period, the 5% rule will be applied to the total value of the taxable purchases.
* GST amount in error refers to the error amount for Box 6 (output tax due) and/or Box 7 (input tax and refund claimed) of your submitted GST return.
^ Non-GST amounts in error refer to the amount of all other errors made in your submitted GST returns that are not GST errors, e.g. an error made to the value declared in Box 1 (Total value of standard-rated supplies), Box 2 (Total value of zero-rated supplies) or Box 5 (Total value of taxable purchases).
Example:
Company A has omitted a standard-rated supply ($10,000 + GST $700) and a taxable purchase ($1,000 + GST $70) in its GST F5 submitted for the accounting period ended 31 Dec 2011. The total value of supplies declared in the submitted GST F5 is $100,000.
1) Net GST amount in error = $700 - $70 = $630 (not more than $1,500 i.e. criteria 1 met)
2) Summation of non-GST amounts in error = $10,000 + $1,000 = $11,000 (more than 5% of $100,000 declared as total supplies in the submitted GST F5 i.e. criteria 2 not met)
Since Company A does not meet both criteria, it is required to file GST F7 for the accounting period ended 31 Dec 2011 to correct the errors made.
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How do I file GST F7?
You need to request for and submit GST F7 electronically via myTax Portal . For step-by-step instructions, you may download a printable copy of GST e-Filing User Guide (4.47MB).
GST F7 form is identical to a GST F5 form. You should fill in the revised figures inclusive of error adjustments for Box 1 to 8 (i.e. treat GST F7 as a new GST return for the accounting period). The GST F7 that you submit will supercede the GST F5/F7/F8 that was submitted previously for the same accounting period.
If my errors affect more than one accounting period
You may consolidate the errors and report them in one GST F7 on a per annum basis (i.e. financial, calendar or tax year basis). For adjustment of the consolidated errors, you should report the total revised values (including the net adjustment) in the GST F7 for the last accounting period of the year.
Example:
Your errors affect all 4 accounting periods in the year 2011. In such instance, you may request for GST F7 for the last accounting period in 2011 (e.g. 1 Oct 2011 to 31 Dec 2011). In the GST F7, you should:
- Report the original figures from the latest GST return for 1 Oct 2011 to 31 Dec 2011 and the consolidated errors for 1 Jan 2011 to 31 Dec 2011
E.g. If the original output tax declared in GST F5 for 1 Oct 2011 to 31 Dec 2011 is $5,000 and the net error for 1 Jan 2011 to 31 Dec 2011 is $2,000, you should declare $7,000 in Box 6 (output tax due) of the GST F7 for 1 Oct 2011 to 31 Dec 2011.
- State in “description of errors” box that the errors declared are for 1 Jan 2011 to 31 Dec 2011.
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Penalties for filing an incorrect return
You can be penalised for up to 200% of the tax undercharged for the submission of incorrect GST returns. To encourage voluntary disclosures of past errors and omissions, IRAS may waive the penalty or accord reduced penalty of 5% for voluntary disclosures which meet the qualifying conditions under the IRAS Voluntary Disclosure Program.
A voluntary disclosure can be made by sending an electronic request for GST F7 (Disclosure of Errors on GST Return) via myTax Portal and subsequently e-Filing the GST F7 within 14 days from the date of request.
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Timeline to correct errors in past returns
- If your error relates to an accounting period ending on or after 1 Jan 2007, you should correct it within five years from the end of that accounting period.
- If your error relates to an accounting period ending before 1 Jan 2007, you should correct it within six years.
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FAQs
You should complete and e-File your GST F7 return within 14 days from the date of your request via myTax Portal.
If the GST F7 return(s) are issued by our auditors for your completion, you will be informed of the due date for filing.
GST is payable within one month from the end of the prescribed accounting period. If the GST F7 is submitted after one month from the prescribed accounting period and it result in additional tax, it means that the tax is already overdue. Therefore, late payment penalty is imposed on the additional tax.
You should fill in the revised value (not adjustment only) of output tax due and input tax claimed in Box 6 and Box 7 respectively. Other boxes must also be filled with the correct value and should not be left blank. The GST F7 will supercede the GST F5 submitted for the accounting period.