GST and BCRS Deposit

What is BCRS?

From 1 Apr 2026, the Beverage Container Return Scheme (BCRS) will be implemented in Singapore. Under the scheme, a 10-cent refundable BCRS deposit will be payable on each regulated beverage sold. Regulated beverages refer to pre-packaged beverages in plastic and metal containers ranging from 150 millilitres to 3 litres. Consumers will receive a full refund of the deposit by returning the empty container to a designated return point.

The National Environment Agency (NEA) has licensed Beverage Container Return Scheme Ltd. (BCRS Ltd.) as the scheme operator to design and operate the scheme in Singapore. As the licensed scheme operator, BCRS Ltd. will be responsible for collecting plastic and metal beverage containers for recycling on behalf of all beverage producers in Singapore.

More information about the scheme can be found at www.nea.gov.sg/bcrs. BCRS Ltd. will also issue guidelines on the communication of the BCRS deposit collection around Dec 2025.

GST treatment of regulated beverages and BCRS deposit

As a supplier of regulated beverages, you will be required to collect a BCRS deposit on top of the beverage price.

1. The BCRS deposit is not subject to GST as it is a refundable deposit paid over and above the price for the beverage.
2. You must, however, continue to collect and account for GST on your local sale of the beverage.

An example is provided below:

Invoicing for BCRS deposit

Since BCRS deposit is not subject to GST, you need not include the deposit in your tax invoice or GST receipt issued for the sale of the beverage. However, for price transparency and ease of operations, you are encouraged to include the BCRS deposit in the invoice and receipt issued to your customer for the beverage sale. 

You can adopt any of the following invoicing options:

(a) Include the BCRS deposit in the same tax invoice, simplified tax invoice or receipt issued for the sale of the regulated beverage.

(b) Issue a tax invoice, simplified tax invoice or receipt for the BCRS deposit only, separate from the invoice or receipt issued for the sale of the regulated beverage.

You can choose not to issue any invoice or receipt for the BCRS deposit since it is not subject to GST. If you do so, you should still issue the tax invoice, simplified tax invoice or receipt for your sale of the regulated beverage, as per current requirements.

Issuing tax invoice with BCRS deposit

If you issue a tax invoice that includes the BCRS deposit, you should include the following details in addition to the other information required in a tax invoice: 

a) A description to identify the BCRS deposit, separate from the sale of the beverage;

b) The amount of BCRS deposit payable; and

c) An indication that the BCRS deposit is not subject to GST.

Issuing simplified tax invoice with BCRS deposit

You may issue a simplified tax invoice instead of a regular tax invoice if the total amount payable (including GST) does not exceed $1,000. The following details must be included in addition to the other information required in a simplified tax invoice:

a) A description to identify the BCRS deposit, separate from the sale of the beverage;

b) The amount of BCRS deposit payable; and

c) An indication that the BCRS deposit is not subject to GST.

Issuing receipt with BCRS deposit

If you choose to issue a GST receipt to your non-GST registered customer for BCRS deposit, you are encouraged to include the additional details required in tax invoices and simplified tax invoices:

a) A description to identify the BCRS deposit, separate from the sale of the beverage;

b) The amount of BCRS deposit payable; and

c) An indication that the BCRS deposit is not subject to GST.

Separating BCRS deposit on invoices and receipts

The amount of BCRS deposit should be shown separately from other items in your tax invoices, simplified tax invoices and receipts. This would help you to account the correct output tax on your beverage sales and enable your GST-registered customers to identify and claim input tax correctly on eligible items (e.g. beverage sales).

Issuing credit note with BCRS deposit

A credit note is issued to correct a mistake or to give a credit to your customer. Where a credit note is issued with BCRS deposit, the credit note should state:

(a) A description to identify the BCRS deposit, separate from the sale of the beverage

(b) The amount of BCRS deposit credited

Since BCRS deposit is not subject to GST, GST must not be credit for the BCRS deposit.