We refer to the letter by Mr Manmohan Singh (‘What about the 5% of traders facing delay of GST refunds?’) on 26 Feb. 

We wish to clarify that over 95% of GST refunds are paid out within 7 days. Of the remaining 5% of cases, nearly all are paid out within our service standard of 30 days and the allowable statutory period of up to 3 months. 

GST refund is withheld only for less than 1% of cases, which are suspected to be incorrect or fraudulent. They are subjected to further audit and investigation. Refunds are made within 3 months of all the required information submitted by the taxpayer. 

IRAS seeks to conclude its cases as soon as possible. But we seek Mr Singh’s understanding that audits and investigations can take longer depending on the complexity of the case and whether the taxpayer is cooperative. The investigation of Missing Trader Fraud is especially complicated. Businesses are advised not to perpetrate or be part of a Missing Trader Fraud arrangement. Tips on how to avoid being drawn into such an arrangement can be found on the IRAS website.  

Kelly Wee (Ms)
Director (Corporate Communications)
Inland Revenue Authority of Singapore