Need to correct errors in past GST F5 submissions
For businesses that make mistakes in their GST F5 returns, it has become easier to update IRAS of the errors by simply submitting the correct information in their next F5 return. Since 1 Jan 2024, the administrative concession threshold to adjust for errors in your next GST F5 return has been raised from $1,500 to $3,000.
Occasionally, you may discover errors in your past GST returns. You may apply for an administrative concession to correct the error(s) in your next GST F5 return when all these conditions are met:
- The net GST amount in error (i.e. additional output tax to be paid - additional input tax to be claimed) for all the affected accounting periods is not more than $3,000
- The total non-GST amount in error (i.e. standard-rated supplies, zero-rated supplies, exempt supplies and taxable purchases error(s) found in Boxes 1, 2, 3 and 5) of the submitted GST F5 Return (s) for each of the affected accounting period(s) is not more than 5% of
- Box 4 (Total Value of Supplies), or
- Box 5 (Total Value of Taxable Purchases), if no supply was made
- The errors do not affect the values declared in Boxes 9 to 12 and 14 to 17 of the submitted GST F5 return(s)
- The errors are not made in your last return, GST F8.
If you meet all these conditions, you may correct the error(s) in your next GST F5 return. Otherwise, you will have to submit a GST F7 form to correct the error(s).
Self-assess if the administrative concession is applicable to you by using this calculator.
Scenarios
Example 1: Company A
On 15 May 2024, Company A spotted the following errors in their GST F5 submissions:
• Duplicate Entry (i.e. input tax overclaimed) for the accounting period 1 Jan 2024 to 31 Mar 2024. The duplicate entry was for $25,000 in Box 5 (Total Value of Taxable Purchases) and a corresponding GST of $2,250 in Box 7 (Input Tax and Refunds Claimed). The Total Value of Supplies declared in Box 4 was $900,000.
• Omission of Standard-Rated Supply of $7,000 and the corresponding GST amount of $490 in its GST F5 submission for the accounting period from 1 Apr 2022 to 30 Jun 2022. The Total Value of Supplies declared in Box 4 was $400,000.
Here's how they calculate their eligibility:
Net GST amount in error: Output Tax Error – Input Tax Error = $490 – (–$2,250) = $2,740
Total non-GST amounts in error are as follows:
1 Jan 2024 to 31 Mar 2024:
- Adjustment to Taxable Purchases / Total Value of Supplies = $25,000 / $900,000 = 2.8%
1 Apr 2022 to 30 Jun 2022:
- Adjustment to Standard-Rated Supplies / Total Value of Supplies = $7,000 / $400,000 = 1.75%
Company A’s adjustments do not exceed the error thresholds. Furthermore, the errors do not affect the values for Boxes 9 to 12 and 14 to 17 declared in the original GST F5 returns.
Conclusion: Company A meets the criteria for the administrative concession to adjust these errors in their next GST F5 submission.
Example 2: Company B
On 1 Jan 2024, Company B reviewed their accounting records for 2022 and 2023, and spotted the following errors in their past GST F5 returns submitted for the following periods:
1 Oct 2022 to 31 Dec 2022:
• They wrongly zero-rated a supply that should have been standard rated. Company B declared $10,000 in Box 2 (Total Value of Zero-rated Supplies) that should have been declared in Box 1 (Total Value of Standard-rated Supplies) and under-charged their customer GST of $700. The Total Value of Supplies originally declared in Box 4 was $250,000.
1 Jul 2023 to 30 Sep 2023:
• They made a double claim of import GST in Box 7 (Total Input Tax and Refunds Claimed) of $2,950. The Total Value of Supplies originally declared in Box 4 was $200,000.
Here’s how they calculated their eligibility:
Net GST amount in error: Output Tax Error – Input Tax Error = $700 – (–$2,950) = $3,650
Total non-GST amounts in error are as follows:
1 Oct 2022 to 31 Dec 2022:
- Adjustment to Standard-Rated and Zero-rated Supplies / Total Value of Supplies = ($10,000 + $10,000) / $250,000 = 8%
1 Jul 2023 to 30 Sep 2023:
- Adjustment to Taxable Purchases / Total Value of Supplies = $0 / $200,000 = 0%
Conclusion: Company B’s errors exceed the administrative concession thresholds. They are required to file a GST F7 for each affected accounting period to correct the errors.
Example 3: Company C
In Feb 2024, Company C discovered that they omitted an import with a value of $1,600 in their GST F5 return submitted for the accounting period from 1 Oct 2023 to 31 Dec 2023. The value of Box 4 (Total Value of Supplies) was declared to be $80,000. As Company C made the import under the Major Exporter Scheme, the error adjustment would affect the value originally declared in Box 9 (Total Value of Goods Imported under the MES/ A3PL/ Other Approved Schemes) of the GST F5 return.
Even though the GST and non-GST amounts in error are within the accepted thresholds for the administrative concession, Company C is still required to make the amendments by filing a GST F7 for the prescribed accounting period from 1 Oct 2023 to 31 Dec 2023 as there was an error made in Box 9 of the GST F5 return.
Important Timeline to Correct Errors
Errors in past GST return(s) should be corrected within five years from the end of the relevant accounting period(s).
Voluntary Disclosure of Errors
You are strongly encouraged to voluntarily disclose and correct any errors within one year of the original return submission deadline. IRAS will not impose additional penalties on errors disclosed within the one-year period.
For more information, visit our guidelines on Voluntary Disclosure of Errors.