How to File GST Return in Singapore: A Step-by-Step Guide

Koh Lim Audit Singapore > Uncategorized > How to File GST Return in Singapore: A Step-by-Step Guide
20th Mar

How to File GST Return in Singapore: A Step-by-Step Guide

Goods and Services Tax (GST) in Singapore is a consumption tax levied on the supply of goods and services and the importation of goods into the country. Businesses registered for GST must file their GST returns periodically, ensuring compliance with the Inland Revenue Authority of Singapore (IRAS). In this guide, we will cover everything you need to know about filing a GST return in Singapore, including eligibility, deadlines, filing methods, and step-by-step instructions.

1. Understanding GST in Singapore

GST was introduced in Singapore on April 1, 1994, as a value-added tax system. As of January 1, 2024, the GST rate is 9%, up from 8% in 2023.

Businesses must charge GST on taxable supplies and remit the collected amount to IRAS. They can also claim input tax credits on GST paid for business expenses, provided that the expenses are related to taxable activities.

2. Who Needs to File GST Returns?

All GST-registered businesses in Singapore must file their GST returns. Businesses must register for GST if:

  • Their taxable turnover exceeds S$1 million in the past 12 months (retrospective basis) or is expected to exceed S$1 million in the next 12 months (prospective basis).
  • They have opted for voluntary registration and received approval from IRAS.

Even if a GST-registered business does not have any transactions in a given period, it must still submit a Nil return.

3. When to File GST Returns?

GST returns must be filed quarterly unless a business has opted for special GST filing arrangements such as monthly filing.

Here are the standard filing periods and due dates:

GST Accounting Period Filing Due Date
Jan – Mar 30 Apr
Apr – Jun 31 Jul
Jul – Sep 31 Oct
Oct – Dec 31 Jan

If the due date falls on a weekend or public holiday, the submission is due on the next working day.

Late submission or payment will result in penalties, including late fees and potential legal action.

4. How to File GST Return in Singapore

GST returns are filed through the myTax Portal on the IRAS website. Follow these steps to complete your filing.

Step 1: Log in to myTax Portal

  1. Go to the IRAS myTax Portal.
  2. Log in using your CorpPass (for businesses) or SingPass (for individuals handling GST filings for sole proprietorships).
  3. Select GST > File GST Return.

Step 2: Select the GST Return to File

  • Under “GST F5”, select the appropriate filing period.
  • If there are no transactions, select Nil return and proceed to submission.

Step 3: Enter Sales and Output Tax Details

  1. Report the total value of standard-rated supplies (9%).
  2. Report the total value of zero-rated supplies (0%) (e.g., exports and international services).
  3. Report the total value of exempt supplies (e.g., sale of financial services or residential properties).
  4. Calculate the GST collected (Output Tax) from customers.

Step 4: Enter Purchases and Input Tax Details

  1. Report the total value of taxable purchases (goods/services purchased from GST-registered businesses).
  2. Report the GST paid (Input Tax) on these purchases.
  3. Ensure only qualifying input tax claims are included.

Step 5: Compute Net GST Payable or Refundable

  • Net GST Payable = Output Tax – Input Tax
    • If Output Tax > Input Tax → You need to pay IRAS.
    • If Output Tax < Input Tax → You will receive a refund from IRAS.

Step 6: Review and Submit GST Return

  • Verify all entries for accuracy.
  • Double-check that all supporting documents are kept for record-keeping (e.g., tax invoices, receipts).
  • Click Submit to file your GST return.

5. Making GST Payments

If you have a GST payable amount, payment must be made by the due date. You can pay via:

  • GIRO (recommended for automatic deductions)
  • Internet Banking (FAST/PayNow)
  • AXS Machines
  • Telegraphic Transfer (for overseas businesses)

Late payments result in a 5% late payment penalty. If not paid within 60 days, an additional 2% penalty per month (capped at 50% of tax due) will apply.

6. GST Refunds

If the Input Tax exceeds the Output Tax, you will receive a GST refund from IRAS. Refunds are generally processed within 30 days after submission, provided that:

  • The return is filed on time.
  • There are no compliance issues or audits by IRAS.

7. Common GST Filing Mistakes to Avoid

1. Late Filing or Payment

  • Failure to file results in fines of up to S$5,000 and potential legal action.
  • Always file by the deadline to avoid penalties.

2. Incorrect Input Tax Claims

  • Only claim input tax for business-related expenses.
  • Ensure supplier invoices are correct and valid.

3. Not Charging GST Correctly

  • Charge 9% GST on standard-rated supplies.
  • Do not charge GST on zero-rated or exempt supplies.

4. Not Maintaining Proper Records

  • Businesses must keep GST records for at least 5 years.
  • Records should include tax invoices, receipts, credit notes, and GST returns.

8. GST Schemes to Consider

Singapore offers several GST schemes to ease tax compliance:

  1. GST Assistance Scheme (GIRO Payment)

    • Helps businesses automate tax payments.

  2. Major Exporter Scheme (MES)

    • Waives GST on imported goods for re-exporters.

  3. Import GST Deferment Scheme (IGDS)

    • Defers import GST payments to the next filing period.

  4. Approved Marine Customer Scheme

    • Grants zero-rated GST on marine-related supplies.

Businesses should assess these schemes to optimize cash flow and tax compliance.

9. What to Do If You Made a Mistake?

If errors are discovered before submission, simply correct them within the form.

If you made a mistake after filing, you must:

  • Submit a GST F7 (Disclosure of Errors on GST Return) via myTax Portal.
  • If the error exceeds S$1,500, it must be reported to IRAS within one year.

10. Seeking Professional Help

If you find GST compliance complex, consider hiring a GST consultant or accounting firm to assist with:

  • Accurate GST computation
  • Proper documentation
  • Timely filing and compliance
  • Handling GST audits by IRAS

Many Singapore accounting firms offer GST services to ensure businesses remain compliant with tax regulations.

Conclusion

Filing GST returns in Singapore is a critical compliance requirement for GST-registered businesses. By understanding the filing process, deadlines, and potential pitfalls, businesses can ensure timely and accurate submissions. Utilizing professional tax services or GST schemes can also help improve efficiency and avoid penalties. Always maintain accurate records and stay updated with IRAS guidelines to ensure smooth GST compliance.

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