Responsibilities of a GST-registered business

You are a GST-registered person from the Effective Date of Registration as specified in the approval letter. Therefore, under the GST law, there are responsibilities that you need to fulfill.

1. Charge GST for standard-rated supplies

For supplies of goods and services made in Singapore (standard-rated supplies), you need to charge GST.

2. e-File accurate GST returns and pay the tax due in a timely manner

• All submissions of GST returns must be submitted via e-Filing (myTax Portal ).
• Failure to e-File is an offence punishable with a fine up to $5,000 and in default of payment, an imprisonment term up to six months.

   

• GST returns must be submitted within one month from the end of each accounting period. If there is no transaction done, you are still required to submit a "NIL" GST return.
• For non/late submission of GST return, IRAS may impose penalty of $200 per month for each month that the return remains outstanding (subject to a maximum of $10,000 for each return outstanding). Please refer to an example on how late submission penalty is imposed.
• IRAS may issue an estimated assessment of the tax due and the amount is subject to late payment penalties. The estimated assessment will only be revised upon receipt of GST return. The late payment penalty will be revised accordingly.

   

• Tax due must be paid within one month from the end of each accounting period.
• For non/late payment, a 5% penalty will be levied on the amount of tax unpaid by the due date and an additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (subject to a maximum of 50% of the outstanding tax) may also be imposed. Please refer to an example on how late payment penalties are imposed.

You may refer to our GST e-Filing User Guide (5.33MB) for step-by-step instructions on e-Filing and What to fill in each box? on how to complete GST returns.

3. Keep business and accounting records

You need to keep all business and accounting records (pertaining to prescribed accounting periods ending on or after 1 Jan 2007) for at least five years. This requirement remains even if your business ceased or is deregistered from GST.

Please refer to Keeping records for the types of records to keep.

4. Display price with GST

Any price displays, advertisements, publications or quotations in respect of goods or services made to the public must be inclusive of GST. Failure to comply with the GST-inclusive price display requirement is an offence for which the fine is up to $5000.

Please refer to Displaying prices for the acceptable price display format [Note: An exception is made for businesses in the hotel and food & beverage (F&B) industries].

5. Issue tax invoices and reflect GST Registration Number

You are required to issue tax invoices for your standard-rated supplies.  If the total amount payable for your supply (including GST) does not exceed $1,000, you may issue a simplified tax invoice. Your GST Registration Number should be reflected on all your tax invoices, simplified tax invoices and receipts.

Please refer to Invoicing customers for information required on a tax invoice and simplified tax invoice.

6. Inform IRAS of changes

You need to inform the Comptroller within 30 days after any change to your business circumstances. These changes include:

• Change in business registered address or mailing address
• Change in business name
• Change in business constitution or ownership
• Change in partner(s) or particulars of partner(s)
• Set up of new partnerships business with the same composition of partners

Please refer to Notify IRAS of changes to your business for procedures on informing us.

7. Accounting for GST on business assets held at point of de-registration

When your GST registration is cancelled, you need to account for GST on business assets held on the last day of registration if GST was previously claimed on their purchases. This applies when the total market value of these business assets is more than $10,000. These assets include inventories, fixed assets, non-residential properties and goods imported under the various GST schemes.

Please refer to Cancel GST registration for more details.

8. Additional obligations under voluntary registration

If you are under voluntary registration, you have to:

• Remain registered for at least two years;
• Make taxable supplies within two years (f you have not started making taxable supplies at the point of application);
• Complete the course "Introduction to GST" within three months from the effective date of registration. You can choose to complete the course via e-Learning, or by attending IRAS’ GST Seminar.
• Be on GIRO arrangement for payment and/ or refund of GST.

The Comptroller may also impose other conditions on voluntarily registered business and may cancel his GST registration if any of the conditions is not met.

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