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For GST-registered businesses

With experienced and/or trained personnel, a computerised accounting system and adequate internal controls, you can avoid making costly GST errors.

You are encouraged to conduct a regular self-review of the tips below (e.g. half-yearly) and take appropriate steps to ensure good GST compliance.

Your GST preparer

  • has at least 1 year experience preparing GST returns.
  • has adequate GST knowledge e.g. attended Introduction to GST Seminar conducted by IRAS.
  • visits IRAS website regularly to update his or her GST knowledge.
  • actively seeks clarification from IRAS or GST experts (e.g. tax consultants) on the correct GST treatment for new or uncertain transactions.

Your accounting system

  • is computerised (i.e. use of customised or off-the-shelf accounting software packages. Please note that Microsoft Word/Excel are considered as manual accounting.)
  • is able to generate a GST report to help you complete your GST returns.
  • is able to detect duplicate records (e.g. duplicate invoice numbers entered).
  • is able to generate softcopy listings (preferably in Microsoft Excel spreadsheet) which may be required by IRAS for its audit purposes. The softcopy listings should contain the following information:

Standard-rated supplies / Zero-rated supplies / Exempt supplies
Invoice date Invoice number Name of customer Description Invoice amount excluding GST ($) GST ($) (if applicable) Destination of goods(if applicable)
             

Taxable purchases
Invoice date Invoice number Name of Supplier Supplier’s GST registration number Description Invoice amount excluding GST ($) GST ($)
             

You have internal controls to ensure that

  • your sales transactions are correctly classified as standard-rated (7%), zero-rated (0%), or exempt (no GST) before they are recorded in the accounting system or before invoices are issued.
  • your purchase transactions are correctly classified as claimable or not claimable before they are recorded in the accounting system.
  • your GST return declarations are reconciled to your accounting records and proper documentation is kept to show reconciliation (e.g. any manual adjustments are properly documented).
  • a second level of review or approval is required before the GST return is submitted.
  • periodic reviews are conducted to assess the correctness of GST return declarations.
  • proper records and accounts are kept for all your transactions.
  • proper supporting documents are kept for your zero-rated supplies.
  • your internal control processes are properly documented and made available to all personnel involved in the accounting and GST reporting process.

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Last Updated on 28 October 2009

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