Running a business? Are you liable to register for GST and what happens if you register late?
As a business owner, it is compulsory for you to register for Goods and Services Tax (GST) when:
- your business turnover at the end of the calendar year exceeds $1 million – this is called the retrospective view, OR
- you reasonably expect that your business turnover will exceed $1 million in the next 12 months – this is called the prospective view.
When do you need to register for GST?
Here’s how to monitor when you need to register for GST.
Prospective View
If your liability to register for GST under the prospective basis arises on or after 1 Jul 2025 (i.e. date of forecast is on or after 1 Jul 2025), you will be registered 2 months from the date of your forecast. For example, if your date of forecast is 2 Sep, you will be registered on 2 Nov.
However, you are still required to apply for GST registration within 30 days after the date of your forecast.
Note: If your liability to register for GST under the prospective basis arises before 1 Jul 2025 (i.e. date of forecast is before 1 Jul 2025), you will be registered on the 31st day after the date of your forecast.
How to calculate your business taxable turnover?
To learn more about how to calculate the taxable turnover for your business, refer to our guides below.
How to register for GST?
To register for GST, check out our step-by-step video guide to help you with the application process.
What happens if you are late for GST registration?
Penalties will apply to businesses who fail to register for GST on time. Business owners will be subject to the following actions:
 | 1. The date of registration will be backdated to the date the business was liable for registration. |
 | 2. You will have to account for and pay GST on your past sales starting from the effective date of registration, even if no GST was collected from the customers. |
 | 3. You may face a fine of up to $10,000 and a penalty equal to 10% of the GST due. Prosecution action may apply. |
However, if you voluntarily disclose that you were late in registration upon submission of your application, the late notification fine and penalties may be waived. In addition, if you face difficulties paying GST due on the backdated period, IRAS may allow you to pay the GST due in instalments.