GST: General Guide for Businesses (PDF, 728KB)
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If you are GST-registered, you must display and quote prices inclusive of GST to the public. This applies to all price displays like price tags, advertisements, and websites.
Failure to comply with the price display requirements may result in a fine of up to $5,000.
How to display and quote prices correctly
GST-inclusive prices are mandatory
You must show the final price customers pay, including GST. This applies to examples such as:
- Price tags and price lists
- Advertisements and brochures
- Website prices
- Written or verbal quotes
Acceptable formats
| Format | Example |
|---|---|
| GST-inclusive price only | $109 |
| With GST notation | $109 (inclusive of GST) |
| With GST notation | $109 w/GST |
Prominent GST-inclusive price (must be at least as prominent as GST-exclusive price) | $109 w/GST ($100 w/o GST) |
Unacceptable formats
| Format | Example |
|---|---|
| GST-exclusive price only | $100 + GST |
| GST-exclusive price only | $100 + 9% GST |
| GST-exclusive price only | $100 + $9 GST |
| Prominent GST-exclusive price | $100 w/o GST ($109 w/GST) |
Unacceptable price quotes
Do not use these phrases without stating the GST-inclusive price:
- "Prices stated are subject to GST"
- "Prices stated are exclusive of GST"
- "Prices stated are before GST"
Exception: Price displays for establishments that impose service charge
An exception is granted to hotels and food & beverage (F&B) establishments that impose service charge on their goods and services. They may display prices before GST to ease their operations, provided a prominent statement such as "Prices are subject to GST and service charge" is displayed.
Otherwise, they may have to display separate price lists for dine-in and take-away items, or to re-compute prices whenever the establishment reduces or waives the service charge.
GST is to be charged on both the price of the goods or services and the service charge.
Note: This exception does not apply to hotels and F&B establishments that do not impose a service charge. It is also not applicable to F&B establishments that levy a nominal service charge without genuine business reasons other than to avoid displaying GST-inclusive prices. Such businesses are still required to display GST-inclusive prices. Those who do not comply with the price display requirement could be subject to a fine.
Illustration:
| Value of food and beverage | $100 |
| 10% service charge | $10 |
| 9% GST (on $110) | $9.90 |
| Total price with GST | $119.90 |
Price displays for retail prices subject to bargaining
When retail prices are subject to bargaining, the price displayed or quoted must still be GST-inclusive. However, the GST to be accounted for is based on the final price agreed with the customer, using the tax fraction (9/109).
Example:
A product is priced at $109 (inclusive of GST). After bargaining, the final selling price is $90.
GST to account for: 9/109 × $90 = $7.43
Misleading "no GST" advertising is not allowed
If you are GST-registered and intend to give a discount equal to the GST amount to the consumer, you must 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 must still account for and pay the GST to IRAS.
Common price display errors
Some GST registered businesses continue to make mistakes when displaying prices. In the past two years, over 100 GST registered businesses have been found to be non compliant with the price display regulations. Watch our video as we explain common price display myths and how to comply with the price display requirements.