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 be GST-inclusive as the public needs to know the final price they have to pay upfront.
Failure to comply with price display requirements can result in a fine of up to $5,000.
Example 1: Acceptable and unacceptable price display
|Price Display Format|
|$100 + GST |
$100 + 7% GST
$100 + $7 GST
$107 w/GST ($100)
$107 w/GST ($100)
($100 w/o GST)
$100 w/o GST
Example 2: Unacceptable price quotes
Quoting the following clauses but not the GST-inclusive prices is unacceptable :
- "Prices stated are subject to GST";
- "Prices stated are exclusive of GST"; and
- "Prices stated are before GST".
Displaying both GST-inclusive & GST-exclusive prices
Misleading "no GST" advertising
If you are GST-registered and intend to give a discount equal to the GST amount to the consumer, you should not advertise that there is 'no GST' for the goods or services.
Such advertising is misleading as GST is included in the price after the discount, and you will still need to account for and pay the GST amount to IRAS.
Prices subject to bargaining
When 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.
Example 3: Display prices subject to bargaining
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 to the requirement to display GST-inclusive prices
As an exception, businesses in the following industries are not required to display GST-inclusive prices for goods and services that are subject to service charge:
• Hotel; and
• Food & beverage (F&B)
This is because these businesses may have operational difficulties in displaying GST-inclusive prices due to the imposition of service charge. However, they must still prominently display a statement informing customers that the prices displayed are subject to GST and service charge.
Please note that the exception does not apply to hotels and F&B outlets that do not impose a service charge. Such businesses are still required to display GST-inclusive prices.