{"id":20701,"date":"2020-11-30T12:54:08","date_gmt":"2020-11-30T07:24:08","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20701"},"modified":"2021-01-02T12:40:13","modified_gmt":"2021-01-02T07:10:13","slug":"analysis-on-gst-registration-in-singapore","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/","title":{"rendered":"Detailed Analysis on GST Registration in Singapore"},"content":{"rendered":"\n<p class=\"has-drop-cap\">GST (Goods and Services Tax) is the form of indirect tax or consumption tax which is directly levied on the supply of services and goods provided. GST tax is charged to the consumer therefore GST normally does not become a cost to the company. The Singapore government introduced this system of GST in 1994. Therefore, <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> in Singapore becomes mandatory for any business that imports any form of products from Singapore. Businesses that import products in Singapore would have to pay some form of GST. Hence it is important to understand the significance of GST registration in Singapore.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#What_are_Objectives_of_GST_Registration_in_Singapore\" >What are Objectives of GST Registration in Singapore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#Regulatory_Authority_for_the_GST_Registration_in_Singapore\" >Regulatory Authority for the GST Registration in Singapore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#What_is_Current_Rate_of_GST_in_Singapore\" >What is Current Rate of GST in Singapore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#Does_my_Entity_Require_the_GST_registration_in_Singapore\" >Does my Entity Require the GST registration in Singapore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#Is_any_Company_or_Entity_Exempted_from_the_GST_registration_in_Singapore\" >Is any Company or Entity Exempted from the GST\nregistration in Singapore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#Process_of_GST_Registration_in_Singapore\" >Process of GST Registration in Singapore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Objectives_of_GST_Registration_in_Singapore\"><\/span>What are Objectives of GST Registration in Singapore?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Some of the objectives of GST registration in\nSingapore are:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>GST was introduced in year 1994\nas the form of indirect tax. This tax is imposed to reduce overall tax burden\npresent on individuals and business entities.<\/li><li>GST tax is charged on services\nand products produced in Singapore. Hence, if the particular product is\nmanufactured and sold in Singapore, then GST would be levied on that product.<\/li><li>GST is applied to goods which\nare imported in Singapore. Hence, if any good is imported in Singapore, then\nGST would be levied on those products.<\/li><li>GST registration in Singapore\nis also mandatory for companies; therefore, they will be directly contributing\nto revenue and gross domestic product of a country.<\/li><li>By levying GST on the\nbusinesses, other forms of indirect tax would not be chargeable on goods &amp;\nservices produced in Singapore.<\/li><li>According to regulatory\nauthorities, GST registration is a compulsory step which is required for the\nbusiness and entity present in Singapore. Companies must mandatorily register\nthemselves with this form of tax. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regulatory_Authority_for_the_GST_Registration_in_Singapore\"><\/span>Regulatory Authority for the GST Registration in Singapore<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary regulatory authority for the\nGST registration in Singapore is the Inland Revenue Authority of Singapore (IRAS).\nThis organisation controls and administers all GST collection processes and\nprocedures in Singapore. Hence the business must register themselves under the\nIRAS.<\/p>\n\n\n\n<p>Apart from this, the IRAS also look into\nany form of disputes or appeals arising out of GST matters. The IRAS helps in\nsettling different form of disputes related to GST registration in Singapore.<\/p>\n\n\n\n<p>Introducing this tax is one of the most\nremarkable steps by IRAS as it removes any form of additional burdens on\npersonal &amp; corporate income. The Singapore government aims steady revenue\ngrowth and limits an amount of income tax paid by the individuals and other\nforms of business entities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Current_Rate_of_GST_in_Singapore\"><\/span>What is Current Rate of GST in Singapore?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Currently, rate of GST in Singapore is 7\nper cent, which is an indirect tax levied on the goods manufactured in\nSingapore. GST applied to the sale price of goods and services in the\nSingapore. Hence in order to calculate GST, the business would have to apply it\non the respective selling price. The revenue authority of Singapore has first\nintroduced GST which is levied on the sale price of products and services\noffered to the customers.<\/p>\n\n\n\n<p>Hence, from the above, it is understood\nthat the payment of GST does not burden entities and businesses that go for the\nGST registration in Singapore. These entities merely act as facilitators &amp;\nagents for the proper collection of GST.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example of the GST registration in Singapore for a Business\nEntity<\/h3>\n\n\n\n<p>If the business is registered in Singapore\nto pay GST, then the same has to be collected from the customers. The customers\npay an amount of GST, which is levied on products and services provided by the\nbusiness.&nbsp; The GST registered business or\nentity then pay the tax to revenue authorities in Singapore.<\/p>\n\n\n\n<p><strong><em>For example<\/em><\/strong>, if charge\nis of SGD 200 to the customer for products and services, then invoice must be\nof SGD 214 for the products and services rendered to the end customer. SGD 200\nis a sale price or selling price of the goods and services to the customer. 7%\nis a current rate of GST in Singapore. Then the total amount would be invoiced\non the customer for the services would be of SGD 214.<\/p>\n\n\n\n<p>The amount that is directly invoiced to the\ncustomer must be directly payable to the revenue authorities of Singapore\n(IRAS). It has to be compulsorily paid every quarter in a year. The invoice\namount can be paid through the GST filing system, that is an online system for\nmaking the payments related to GST.<\/p>\n\n\n\n<p>Any company that is established has to\napply under IRAS for GST registration in Singapore. Just by incorporating under\na relevant Company law of Singapore does not provide any automatic status for\nGST registration. Hence the company would have to register with the IRAS before\nthey can charge any amount of the GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_my_Entity_Require_the_GST_registration_in_Singapore\"><\/span>Does my Entity Require the GST registration in Singapore?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST registration in Singapore is required\nmandatory for all the businesses in Singapore. However, there are specific\ncriteria for the business to be registered under a relevant GST legislation.\nThe payment of GST by the particular business is determined on an amount of\nrevenue generated by a business entity.<\/p>\n\n\n\n<p>Hence it is clear that a payment of GST in\nSingapore would be based on the revenues earned by business. Businesses have to\ndetermine whether or not they are required to pay GST. From the above, it can\nunderstand that a payment of GST by a particular business would have to be\ncontinually assessed by a business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mandate of GST registration in Singapore under Two Forms<\/h3>\n\n\n\n<p><strong><em>The following are the two types of GST registration in Singapore:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"341\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Mandate-of-GST-registration-in-Singapore-under-Two-Forms-1024x341.png\" alt=\"Mandate of GST registration\" class=\"wp-image-20705\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Mandate-of-GST-registration-in-Singapore-under-Two-Forms-1024x341.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Mandate-of-GST-registration-in-Singapore-under-Two-Forms-300x100.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Mandate-of-GST-registration-in-Singapore-under-Two-Forms-768x256.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Mandate-of-GST-registration-in-Singapore-under-Two-Forms.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Voluntary Registration<\/h3>\n\n\n\n<p>Under this process of voluntary\nregistration, the business has to carry out a self-assessment tax for a\nbusiness entity. Based upon the revenues earned by the business, the GST would\nbe charged on a business entity. Any business that does not have a liability to\ncompulsory register under this system can opt for the voluntary registration\nprocess. <\/p>\n\n\n\n<p>When the business goes in for a voluntary\nregistration process, then there must be prospective plans for a business to\ncarry out sales in Singapore. The following conditions must be satisfied with\nthe business for classifying under a voluntary registration of GST in\nSingapore:-<\/p>\n\n\n\n<ul><li>Any business which goes for the procedure of voluntary registration of GST in Singapore must be registered for a minimum period of 2 years.<\/li><li>Apart from this, the business must comply with relevant regulations related to GST.<\/li><li>The business would have to make GST invoices payable to the IRAS.<\/li><li>This particular payment must be carried out quarterly.<\/li><li>The entity must preserve all the records. The documents and records must be maintained by the authority for a minimum of 5 years from the date of registration.<\/li><li>Any other conditions that are imposed by the <strong>IRAS<\/strong><sup><a href=\"https:\/\/www.iras.gov.sg\/irashome\/default.aspx\"><strong>[1]<\/strong><\/a><\/sup> have to be complied by the business entity.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Compulsory Registration<\/h3>\n\n\n\n<p>Under this, every business entity in\nSingapore must mandatorily require registering. The following criteria that are\nrequired for compulsory GST registration in Singapore:<\/p>\n\n\n\n<ul><li>If a turnover, including the\nrevenues and sale of the business, exceeds more than SGD 1 Million in past 12\nmonths. It is known as a retrospective basis as there is some form of pre-determination\nin a process of payment of GST.<\/li><li>If a company is not sure about\nthe turnover but has an excessive amount of sale and there is a reasonable\nprospect that a turnover of the business will exceed the SGD 1 Million for the\nnext 12 months. Such pre-determination of future sales of a company is known as\na prospective basis. Any form of sales contracts or agreements are signed in\nadvance would determine the payment of GST.<\/li><li>When revenue of the company\nexceeds SGD 1 million, then the company must have to register with the relevant\nauthority for paying GST. It is carried out within 30 days of the revenue\nexceeding that particular amount. <\/li><\/ul>\n\n\n\n<p>By carrying out the above procedure, the\nbusiness has to comply with the relevant laws related to GST and avoid any form\nof penalties imposed by the IRAS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_any_Company_or_Entity_Exempted_from_the_GST_registration_in_Singapore\"><\/span>Is any Company or Entity Exempted from the GST\nregistration in Singapore?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Usually, all business entities required to\nregister for charging GST in Singapore. However, if any business entity has a\nsystem of making only zero-rated supplies, then such business gets exemption\nfrom GST registration. It would be applicable for the business in case the\ntaxable turnover exceeds a required amount of business registration for the GST\nperspective.<\/p>\n\n\n\n<p><strong><em>If any business is exempted from the GST registration,\nthen the following criteria have to be fulfilled:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>The business claims for an exemption from GST registration must show the IRAS that an amount of zero-rated supplies exceeds more than 90%.<\/li><li>It will be the case if an amount of revenues of the business exceeds the value of the SGD 1 million.<\/li><li>The business entity must comply with all other requirements of the business process.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_GST_Registration_in_Singapore\"><\/span>Process of GST Registration in Singapore<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Every company must follow the below process for GST\nregistration in Singapore:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The applicant must submit the\nGoods &amp; Services Registration Form (GST F1) along with all respective\ndocuments to the tax authority in Singapore, which is IRAS.<\/li><li>If a business has additional\npartners and directors, then another form (GST F3) has to be filled by the\nbusiness and sent to the authority.<\/li><li>Filing of GST F3 form will be\nin the case if the business is the partnership or limited liability\npartnership.<\/li><li>However, there is separate\nprocedure for making an application if an applicant is an overseas company or\nan entity which is registered outside the jurisdiction of Singapore<\/li><li>It would be convenient for an\noverseas company to appoint a registered agent or a duly appointed agent to\nfile the GST registration in Singapore. If a company appoints an agent, then an\nindependent letter or a power of attorney has to be submitted along with the\nform stating the same requirement.<\/li><li>Once the procedure is\ncompleted, the authority will get back within three weeks (21 working days). If\nan authority considers that the application has no errors, then an applicant\nwill be registered without any issues.<\/li><li>On successful registration, an\napplicant will receive intimation or a notification from the GST authority. The\nintimation will be in the form of a letter, which will contain the following\ninformation:<\/li><\/ul>\n\n\n\n<ol><li>GST registration number for a business<\/li><li>GST return filing date of a business<\/li><li>Quarterly Filing Information for a business<\/li><li>Last date of <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>filing GST return<\/strong><\/a> of a business<\/li><li>Any other important information related to filing of GST return for a business.<\/li><\/ol>\n\n\n\n<ul><li>The applicant has to take all\nsteps to file GST on time, and filing must be carried out electronically by an\napplicant.<\/li><li>Once the process is carried\nout, an applicant would be registered under the GST registration in Singapore\nsystem. An applicant has to set up a GIRO system of payments under the\nSingapore Bank Account.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is concluded that it is important that\nevery business entity must have GST registration in Singapore. By this particular\nsystem, a company does not have an additional burden to pay the other forms of\nindirect taxes.&nbsp; <\/p>\n\n\n\n<p>When a business manufacturers any product or provides a service, then GST is levied on the products and services. A business requires to register for GST if the revenue exceeds more than SGD 1 Million. However, there are exemptions from registering under the GST system. At <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> we assist our clients\u2019 matters pertaining to GST registration.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/list-of-goods-and-services-where-gst-is-applicable-latest-rates\/\">\nList of Goods and Services where GST is Applicable: Latest Rates\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST (Goods and Services Tax) is the form of indirect tax or consumption tax which is directly levied on the supply of services and goods provided. GST tax is charged to the consumer therefore GST normally does not become a cost to the company. The Singapore government introduced this system of GST in 1994. Therefore, [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":20704,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1264],"acf":{"service_id":"334"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":3324,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20701"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=20701"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20701\/revisions"}],"predecessor-version":[{"id":23292,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20701\/revisions\/23292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20704"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}