GST rate change for consumers
In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
(i) 7% to 8% with effect from 1 Jan 2023 (first rate change); and
(ii) 8% to 9% with effect from 1 Jan 2024 (second rate change).
The revenue from the increase in GST will go towards
supporting our healthcare expenditure, and to take care of our seniors.
On this page:
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 made in 2023 will be subject to GST at 8%, and purchases on or after 1 Jan 2024 will be subject to GST at 9%.
There are scenarios where one or more of the following events straddle 1 Jan 2024:
- 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 in 2023
- Goods or services received on or after 1 Jan 2024
If full payment is received by the supplier for the goods or services in 2023, GST will be chargeable at 8% regardless of when the invoice is issued or when the goods or services are provided to you.
Example 1
GST will be chargeable at 8% since full payment is received by the supplier for the goods before 1 Jan 2024.
Scenario 1A
- Part payment for goods or services made in 2023
- Goods or services received on or after 1 Jan 2024
If part payment is received by the supplier for the goods or services in 2023, GST will be chargeable at 8% on the payment amount regardless of when the invoice is issued or when the goods or services are provided to you. For the remaining payment, GST will be chargeable at 9%.
Example 1A
On 14 Dec 2023, you purchase $500 worth of goods to be delivered on 10 Jan 2024. You receive a tax invoice on 14 Dec 2023 and part payment of $200 is received by the supplier on the same day. The remaining payment of $300 will be received by the supplier in 2024.
GST will be chargeable at 8% on the part payment of $200 received by the supplier in 2023 and at 9% on the remaining payment of $300 received by the supplier in 2024.
Scenario 2
- Invoice issued in 2023
- Goods or services received in 2023
- Payment for goods or services made on or after 1 Jan 2024
If you receive both the invoice and the goods or services in 2023, GST will be chargeable at 8% regardless of when the payment for the goods or services is made.
Example 2
You receive a tax invoice on 21 Dec 2023 for cleaning services provided to you on 20 Dec 2023. Payment is received by the cleaning service provider on 14 Jan 2024 when the prevailing GST rate is 9%.
GST will be chargeable at 8% since you received both the invoice and the services in 2023.
Scenario 2A
- Invoice issued in 2023
- Partial goods or services received in 2023
- Payment for goods or services made on or after 1 Jan 2024
If you receive the invoice and partial goods or services in 2023, GST will be chargeable at 8% on the value of goods or services received in 2023. For the remaining value of goods or services received on/after 1 Jan 2024, GST will be chargeable at 9%.
The supplier will issue a credit note to adjust the GST charged at 8% on the value of the goods or services received on/after 1 Jan 2024. A new tax invoice will be issued to charge GST at 9% on the value of the goods or services received on/after 1 Jan 2024.
Example 2A
You receive a tax invoice on 10 Dec 2023 with 8% GST charged for the cleaning services that will be provided on 20 Dec 2023 and 20 Jan 2024. Payment is received by the cleaning service provider on 20 Jan 2024.
GST is chargeable at 8% on the cleaning services received in 2023 and 9% on the cleaning services received on/after 1 Jan 2024. The supplier will issue you a credit note to adjust the GST charged at 8% on the value of cleaning services received on 20 Jan 2024. A new tax invoice will be issued to you to charge GST at 9% on the value of cleaning service received on 20 Jan 2024.
Scenario 3
- Invoice issued in 2023
- Full payment for goods or services made on or after 1 Jan 2024
- Goods or services received on or after 1 Jan 2024
If you make full payment and receive the goods or services on or after 1 Jan 2024, GST will be chargeable at 9% even if the invoice is issued in 2023. In this case, as the original invoice will reflect GST at 8%, the supplier will issue a credit note to cancel the original tax invoice and issue a new tax invoice that reflects GST at 9%.
Example 3
GST will be chargeable at 9% since the goods are delivered to you and full payment is received by the supplier after 1 Jan 2024. The supplier will issue you a credit note to cancel the original tax invoice, and a new tax invoice will be issued to you to charge GST at 9%.
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 displays to the public. In other words, what you see must be the final price you pay.
From 1 Jan 2024, the prices displayed by GST-registered businesses must be inclusive of GST at 9%. Businesses that are unable to switch their price display overnight may display 2 prices:
(a) One applicable before 1 Jan 2024 showing prices inclusive of GST at 8%
(b) One applicable on or after 1 Jan 2024 showing prices inclusive of GST at 9%
However, they cannot charge and collect GST at 9% before 1 Jan 2024.
An exception is granted to hotels and food & beverage (F&B) establishments that impose service charge on their goods and services. They are not required to display GST-inclusive prices for goods and services that are subject to service charge
to ease their operations. However, they must still display a prominent statement informing customers that the prices displayed are subject to GST and service charge.
The 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.
3) Reporting wrong GST practices of businesses
Wrong GST practices of businesses include:
- Charging and collecting GST at 9% before 1 Jan 2024
- Charging and collecting GST when they are not registered for GST
- Non-compliance with price display requirements
- Non-compliance with invoicing requirements
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 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
| Scheme | More information / Contact details |
|---|---|
| Additional GST Voucher – U-Save | Visit: www.gstvoucher.gov.sg/am-i-eligible/u-save [email protected] 6671 7117 |
| CDC Vouchers | More 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
| Scheme | More information / Contact details |
|---|---|
| GST Voucher – Cash and MediSave | Visit: www.gstvoucher.gov.sg [email protected] 1800 222 2888 |
| GST Voucher – U-Save | Visit: www.gstvoucher.gov.sg/am-i-eligible/u-save [email protected] 6671 7117 |
| GST Voucher – S&CC Rebate | Visit: 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
I order a new mattress for my home and make full payment at the point of order on 15 Dec 2023. The mattress is delivered on 25 Jan 2024. Is GST chargeable at 8% or 9%?
GST will be chargeable at 8% if full payment is made and received by the supplier in 2023.
Can I pay for my purchases in advance for GST to be chargeable at 8%?
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 in 2023, GST will be chargeable at 8%.
You will need to contact your supplier to understand the terms and conditions or policy relating to advance payment.
I receive an invoice on 15 Jun 2023 to pay a deposit to a hotel for a wedding banquet that will take place on 30 Sep 2024. I pay the deposit immediately after receiving the invoice. I receive another invoice on 30 Sep 2024 for the balance amount and make payment on the same day. Is GST chargeable at 8% or 9% on the deposit?
As the deposit for the wedding banquet is paid and received by the hotel before 1 Jan 2024, GST will be chargeable at 8%.
For the remaining amount payable for the banquet, GST will be chargeable at 9%.
On 15 Dec 2023, I receive a tax invoice of $1,000 from a cleaning service company for cleaning services from 15 Dec 2023 to 14 Jan 2024. I make the full payment on 15 Jan 2024. The value of services to be performed is $200 in 2023 and $800 in 2024. Can I pay 8% GST for the entire service?
GST will be reflected at 8% on the tax invoice issued to you on 15 Dec 2023. As payment is received by the cleaning service company after 1 Jan 2024, the company will adjust the GST chargeable to 9% for the part of the services performed on or after 1 Jan 2024.
As the value of services performed on or after 1 Jan 2024 is $800, the supplier will issue:
- a credit note for $864 ($800 plus 8% GST of $64); and
- a new tax invoice for $872 ($800 plus 9% GST of $72).
GST remains chargeable at 8% on the value of services performed before 1 Jan 2024 (i.e. $200).
If you decide to make the full payment of $1,000 and the cleaning service company receives the payment before 1 Jan 2024, GST is chargeable at 8% on the entire service.
On 1 Nov 2023, I receive a tax invoice of $100,000 from a contractor for renovation services from 1 Dec 2023 to 28 Feb 2024. I pay a deposit of $10,000 on 1 Nov 2023, followed by progressive payments of $30,000 per month in 1 Dec 2023, 1 Jan 2024 and 1 Feb 2024. The value of the renovation services performed in 2023 is $20,000. How will GST be charged?
GST will be chargeable at 8% on the tax invoice issued to you on 1 Nov 2023. 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 2024, the contractor will need to adjust the GST chargeable from 8% to 9% on the lower of:
- the part payment received on or after 1 Jan 2024; or
- the value of the renovation services performed on or after 1 Jan 2024.
The value of the renovation services performed on or after 1 Jan 2024 is $80,000 and the payment received by the contractor on or after 1 Jan 2024 is $60,000. The lower of the 2 values which is $60,000 will be subject to 9% GST. The payment of $40,000 (deposit of $10,000 and progressive payment of $30,000) received by the contractor in 2023 will continue to be subject to 8% GST.
The contractor will issue:
- a credit note for $64,800 ($60,000 plus 8% GST of $4,800); and
- a new tax invoice for $65,400 ($60,000 plus 9% GST of $5,400).
On 20 Dec 2023, I place an online order and made payment for a set of furniture. The furniture is flown in from Italy and imported into Singapore via air on/after 1 Jan 2024. How will import GST be charged?
If the value of the imported goods including insurance and freight (CIF value) by air or post is $400 or less, no import GST is collected by Singapore Customs as there is import relief for such goods. However, from 1 Jan 2023 onwards, non-GST registered persons, including end consumers will need to pay GST if they purchase goods valued at $400 and below, which are imported via air or post, from a GST-registered vendor registered under the OVR regime.
If the value of the goods including insurance and freight (CIF value) by air or post exceeds $400, import GST of 9% is payable since the goods are imported on/after 1 Jan 2024. If your freight forwarder had collected import GST in advance from you at 8%, they may collect an additional 1% GST from you.
Please refer to GST on Imported Low-Value Goods for more information.