How will the GST rate change affect you as a consumer?

1) Rate of GST chargeable on your purchases

As a general rule, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on or after 1 Jan 2023 will be subject to GST at 8%.

 

There are scenarios where one or more of the following events straddle 1 Jan 2023:

  • Issuance of invoice
  • Payment for the goods or services
  • Receipt of goods or services

In these scenarios, special GST rules will apply. Here are some common scenarios.

 

Scenario 1

  • Full payment for goods or services made before 1 Jan 2023
  • Goods or services received on or after 1 Jan 2023

If full payment is received by the supplier for the goods or services before 1 Jan 2023, GST will be chargeable at 7% irrespective of when the goods or services are provided to you.

Example 1

On 14 Dec 2022, you purchase goods to be delivered on 10 Jan 2023. You receive a tax invoice on 14 Dec 2022 and full payment is received by the supplier on the same day. 

GST will be chargeable at 7% since full payment is received by the supplier for the goods before 1 Jan 2023.

Scenario 2

  • Invoice issued before 1 Jan 2023
  • Goods or services received before 1 Jan 2023
  • Payment for goods or services made after 1 Jan 2023

If you receive both the invoice and the goods or services before 1 Jan 2023, GST will be chargeable at 7% irrespective of when the payment for the goods or services is made. 

Example 2

You receive a tax invoice on 21 Dec 2022 for cleaning services provided to you on 20 Dec 2022. Payment is received by the cleaning service provider on 14 Jan 2023 when the prevailing GST rate is 8%. 

GST will be chargeable at 7% since you received both the invoice and the services before 1 Jan 2023. 

Scenario 3

  • Invoice issued before 1 Jan 2023
  • Full payment for goods or services made on or after 1 Jan 2023
  • Goods or services received on or after 1 Jan 2023

If you make full payment and receive the goods or services on or after 1 Jan 2023, GST will be chargeable at 8% even if the invoice is issued before 1 Jan 2023. In this case, as the original invoice will reflect GST at 7%, the supplier will issue a credit note to cancel the original tax invoice, and issue a new tax invoice that reflects GST at 8%. 

Example 3

On 20 Dec 2022, you purchase goods and receive a tax invoice when the prevailing GST rate is 7%. The supplier receives the payment on 3 Jan 2023 and the goods are delivered on 15 Jan 2023.

 

GST will be chargeable at 8% since the goods are delivered to you and full payment is received by the supplier after 1 Jan 2023. The supplier will issue you a credit note to cancel the original tax invoice, and a new tax invoice to charge GST at 8%.

For other scenarios (e.g. where partial payments are made before 1 Jan 2023, or where goods or services are partially received before 1 Jan 2023), please refer to this flowchart.

You may also refer to the FAQs on transactions spanning rate change.

To check whether a business is registered for GST, please use our GST Registered Business Search digital service

2) Price display by GST-registered businesses

GST-registered businesses must display GST-inclusive prices on their price tags or displays. In other words, what you see must be the final price you pay. 

From 1 Jan 2023, the prices displayed by GST-registered businesses must be inclusive of GST at 8%. Businesses that are unable to switch their price tags overnight may display 2 prices:

(a) One applicable before 1 Jan 2023 showing prices inclusive of GST at 7%

(b) One applicable on or after 1 Jan 2023 showing prices inclusive of GST at 8%

However, they cannot charge and collect GST at 8% before 1 Jan 2023. 

As an exception, hotels and food & beverage businesses are not required to display GST-inclusive prices for goods and services that are subject to service charge. However, they must still prominently display a statement informing customers that the prices displayed are subject to GST and service charge.

3) Reporting wrong GST practices of businesses

Wrong GST practices of businesses include:

To report wrong GST practices of businesses, please write to us by submitting this form.

4) Reporting unjustified price increases using GST as cover

The Committee Against Profiteering (CAP) was reconvened on 16 Mar 2022, to investigate feedback on unjustified price increases of essential products and services that use the GST increase as a cover.

If a business raises its prices, it is not acceptable for the business to use the GST increase as the reason for raising prices before the GST rate change, nor is it acceptable for a business to raise prices by more than the GST increase after the GST rate change, citing the GST increase as the reason.

If you come across cases of unjustified price increases of essential goods or services that use the GST increase as a cover, please provide your feedback to the CAP. All feedback submitted will be reviewed by the CAP, and further investigated if necessary, to identify businesses that may have engaged in unjustified price increases on the pretext of the GST increase.

For more information, please visit the Committee Against Profiteering’s website.

5) Support for households

 

At Budget 2022, the Minister for Finance announced the Assurance Package for GST to cushion the impact of the planned GST increase, and enhancements to the permanent GST Voucher scheme to provide continuing help to defray the GST expenses of lower- to middle-income Singaporean households, beyond the transitional support covered by the Assurance Package.

 

For more information, please visit MOF’s webpage on Support for Households, MOF’s FAQs on the Assurance Package for GST, and MOF’s FAQs on the Enhanced Permanent GST Voucher Scheme.

 

For enquiries on the specific schemes, please refer to the following contact details:

 

Contact details for Assurance Package for GST

 

SchemeMore Information/ Contact Details
Additional GST Voucher – U-SaveVisit: www.gstvoucher.gov.sg/pages/u-save.aspx
 
[email protected]
 
6671 7117
CDC VouchersMore details will be announced by the CDCs. For enquiries, please call the PA Contact Centre at 6225 5322 or fill in a feedback form at www.pa.gov.sg/feedback.

Contact details for Enhanced Permanent GST Voucher Scheme

 

SchemeMore Information / Contact Details
GST Voucher – Cash and MediSaveVisit: www.gstvoucher.gov.sg
 
[email protected]
 
1800 222 2888
GST Voucher – U-SaveVisit: www.gstvoucher.gov.sg/pages/u-save.aspx
 
[email protected]
 
6671 7117
GST Voucher – S&CC RebateVisit: www.hdb.gov.sg
[Under My HDBPage > My Flat > Purchased Flat/Rental Flat > S&CC Rebate]
 
For specific queries regarding S&CC payables, please contact your respective Town Councils. Contact information can be found at: www.hdb.gov.sg/cs/infoweb/contact-us > Living in HDB flats > Maintenance-related requests for common areas

 

FAQs on transactions straddling rate change

Can I pay for my purchases in advance for GST to be chargeable at 7%?

If the supplier is able to accept advance payments for the goods and services you purchase and full payment is received by the supplier for the goods or services before 1 Jan 2023, GST will be chargeable at 7%.

 

You will need to contact your supplier to understand the terms and conditions or policy relating to advance payment.

On 15 Dec 2022, I receive a tax invoice of $1,000 from a cleaning service company for cleaning services from 15 Dec 2022 to 14 Jan 2023. I make the full payment on 15 Jan 2023. Can I pay 7% GST for the entire service?

GST will be chargeable at 7% on the tax invoice issued to you on 15 Dec 2022. As payment is received by the cleaning service company after 1 Jan 2023, the company will adjust the GST chargeable to 8% for the part of the services performed on or after 1 Jan 2023.

 

For example, if the value of services performed on or after 1 Jan 2023 is $800, the supplier will issue:

  • a credit note for $856 ($800 plus 7% GST of $56); and
  • a new tax invoice for $864 ($800 plus 8% GST of $64).

GST remains chargeable at 7% on the value of services performed before 1 Jan 2023 (i.e. $200).

If you had decided to make full payment and the cleaning service company had received the payment before 1 Jan 2023, GST is chargeable at 7% on the entire service.

On 1 Nov 2022, I receive a tax invoice of $100,000 from a contractor for renovation services from 1 Dec 2022 to 28 Feb 2023. I pay a deposit of $10,000 on 1 Nov 2022, followed by progressive payments of $30,000 per month in Dec 2022, Jan 2023 and Feb 2023. How will GST be charged?

GST will be chargeable at 7% on the tax invoice issued to you on 1 Nov 2022. However, as a part of the payment is received by the contractor and a part of the services is performed on or after 1 Jan 2023, the contractor will need to adjust the GST chargeable from 7% to 8% on the lower of:

  • the part payment received on or after 1 Jan 2023; or
  • the value of the renovation services performed on or after 1 Jan 2023.

For example, if the value of the renovation services performed on or after 1 Jan 2023 is $80,000, and the payment received by the contractor on or after 1 Jan 2023 is $60,000, the contractor will issue:

  • a credit note for $64,200 ($60,000 plus 7% GST of $4,200); and
  • a new tax invoice for $64,800 ($60,000 plus 8% GST of $4,800).

The payment of $40,000 (deposit of $10,000 and progressive payment of $30,000) received by the contractor before 1 Jan 2023 will continue be subject to 7% GST.

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