Displaying prices

GST registered business must show GST-inclusive prices on all price displays (e.g. price tags, price lists, advertisements, publicity brochures, website). Prices that are quoted, whether written or verbal, must also be GST-inclusive. Failure to do so is an offence and offenders may be fined for up to $5000.

It is important for the public to know upfront the final price of goods and services that they have to pay. The following illustration shows the acceptable and non-acceptable price display format:

If two prices (i.e. both GST-inclusive and GST-exclusive price) are displayed, the GST-inclusive price must be prominently displayed.

Quoting the following clauses but not the GST-inclusive prices is not acceptable:

• "Prices stated are subject to GST"
• "Prices stated are exclusive of GST"
• "Prices stated are before GST"

Where a GST-registered business intends to give a discount equal to the GST amount to the consumer, it is incorrect to advertise that there is 'no GST' for the goods or services. Such advertising is misleading as there is a GST element in all the goods and services supplied by a GST-registered business.

Prices subject to bargaining

Where the retail price is subject to bargaining, the price displayed or quoted must still be inclusive of GST. However, the amount of GST to be accounted for by the retailer will be the tax fraction (7/107) of the final price paid by the customer.

Exception

An exception is made for businesses in the hotel and food & beverage (F & B) industries only. Due to the imposition of service charge, these businesses may have operational difficulties in displaying GST-inclusive prices. Therefore, they may display GST-exclusive prices for goods and services that are subject to service charge. However, a statement informing customers that prices displayed are subject to GST and service charge must be prominently shown.

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