Price Displayed or Quoted Must Be GST-Inclusive
GST-registered businesses 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.
From 1 Apr 2015, if both GST-inclusive and GST-exclusive prices are displayed, the GST-inclusive price must be at least as prominent as the GST-exclusive price.
Failure to comply with each of these price display requirements is an offence that can result in a fine of up to $5,000.
It is important for the public to know upfront the final price of goods and services that they have to pay.
| Price Display Format |
|---|
| Acceptable | Not Acceptable |
$107 | $100 + |
$107 w/GST
$107 (inclusive of GST) | $100 + GST
$100 + 7% GST
$100 + $7 GST |
$107 w/GST ($100)
$107 w/GST ($100) |
$107 w/GST ($100) |
$107 w/GST($100 w/o GST) | $100 w/o GST($107 w/GST) |
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"; and
- "Prices stated are before GST".
Displaying Both GST-Inclusive and GST-Exclusive Prices
If two prices (i.e. both GST-inclusive and GST-exclusive price) are displayed, the GST-inclusive price must be at least as prominently displayed as the GST-exclusive price.
Misleading "No GST" Advertising
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 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.
The price displayed is $107 for a given product. The product is subsequently sold at $90 after bargaining.
GST to be accounted for = 7/107 x $90 = $5.89
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.
Please note that F & B outlets that do not impose a service charge must display GST-inclusive prices as the above concession is not applicable to them.