Learning Objectives:

• What are the responsibilities of a GST-registered business? 
• What are some of the consequences of non-compliance?
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Responsibilities of a GST-Registered Business

Learn about GST-registered business obligations, compliance requirements, and consequences for non-compliance.

Learning Activity - Test Your Understanding

Q1. A product priced at S$100 is subject to S$9 of GST. Which of the following are acceptable price display formats?

i. S$100 (subject to GST)
ii. S$109
iii. S$100++
iv. S$109 (S$100 w/o GST)

A) (i) and (iii)

B) (ii)

C) (ii) and (iii)

D) (ii) and (iv)

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D) (ii) and (iv)

GST-registered businesses must show GST-inclusive prices on all price displays to the public.

Businesses that decide to display GST-exclusive prices must also display GST-inclusive prices. The GST-inclusive price must be at least as prominent as the GST-exclusive price.

Q2. Which of the following statements are true about issuing tax invoices? 

i. Tax invoices must be issued within 30 days from the time of supply
ii. Tax invoices must be issued within 60 days from the time of supply
iii. Tax invoices must be issued for zero-rated supplies
iv. Tax invoices issued in foreign currency must be converted into Singapore Dollars using an approved exchange rate

A) (i) and (iii)

B) (i) and (iv)

C) (ii) and (iii)

D) (ii) and (iv)
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B) (i) and (iv)

For point (iii), a tax invoice does not need to be issued for zero-rated supplies. However, if a tax invoice is issued for zero-rated supplies, it is necessary to indicate that GST is charged at 0%.

Q3. Company A has ceased business and cancelled its GST registration. Which statement is correct? 

A) Company A has to keep its business and accounting records for at least 2 years to support GST declarations even though it has ceased business and cancelled its GST registration

B) Company A has to keep its business and accounting records for at least 3 years to support GST declarations even though it has ceased business and cancelled its GST registration

C) Company A has to keep its business and accounting records for at least 5 years to support GST declarations even though it has ceased business and cancelled its GST registration

D) Company A can destroy its business and accounting records as they are no longer required after a business has ceased
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C) Company A has to keep its business and accounting records for at least 5 years to support GST declarations even though it has ceased business and cancelled its GST registration

Q4. Which of the following is a due diligence check on whether an arrangement is organised with the intention to defraud the tax authority of GST?

A) Check suppliers'/customers' relevant experience in the trade and knowledge of the goods/services being bought/sold

B) Make futher enquiries with suppliers when high-value deals are offered with no formal contract arrangements

C) Find out more when new business opportunities are offered to you with minimal or no effort required on your part to source for customers and suppliers (pre-arranged deals)

D) All of the above
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D) All of the above

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