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Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.
GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated.
The full form of GST is Goods and Service Tax. It is an indirect tax introduced in India from 1st July 2017. It is a value-added tax levied on the manufacture, sale, and consumption of goods and services. Alternatively, GST can be defined as a destination based tax where the tax is collected on the place where the ultimate consumption is done, no matter how long the journey of good otherwise had been!! At every stage of supply, credit for, the taxes already paid on purchases or inward supply is allowed. And, the final payout occurs from the pocket of the consumer of goods or service. There are differential rates prescribed by Central Board of Indirect Tax & Customs (CBIC). There is also a GST council set up to make and implement the by laws
The full form of GST is Goods and Service Tax. It is an indirect tax introduced in India from 1st July 2017. It is a value-added tax levied on the manufacture, sale, and consumption of goods and services. Alternatively, GST can be defined as a destination based tax where the tax is collected on the place where the ultimate consumption is done, no matter how long the journey of good otherwise had been!! At every stage of supply, credit for, the taxes already paid on purchases or inward supply is allowed. And, the final payout occurs from the pocket of the consumer of goods or service. There are differential rates prescribed by Central Board of Indirect Tax & Customs (CBIC). There is also a GST council set up to make and implement the by laws
| Type | Standard-rated supplies (9% GST) | Zero-rated supplies (0% GST) |
|---|---|---|
| Goods | Most local sales fall under this category. Sale of imported low-value goods (from 1 Jan 2023) | Export of goods E.g. sale of laptop to an overseas customer, where the laptop is shipped to an overseas address |
| Services | Most local provision of services fall under this category. E.g. provision of spa services to a customer in Singapore
Imported Services | Services that are classified as international services E.g. air ticket from Singapore to Thailand (international transportation service) |
| Type | Exempt supplies (GST is not applicable) | Out-of-scope supplies (0% GST) |
|---|---|---|
| Goods | Sale and rental of unfurnished residential property Importation and local supply of investment precious metals | Sale where goods are delivered from overseas to another place overseas Private transactions See Out-of-scope supplies for more information. |
| Services | Financial services Digital payment tokens (from 1 Jan 2020) | Private transactions. See Out-of-scope supplies for more information. |
The Goods and Services Tax (GST) is a unified national tax introduced in India in 2017. It replaced a multitude of indirect taxes levied on goods and services previously levied by the central and state governments. GST applies to the supply of most goods and services across India and aims to simplify the tax system and make it more efficient.
GST is levied on the value added at each stage of the production and distribution chain of goods and services. The final consumer pays the tax embedded in the price of the product or service. The government collects the tax and distributes it to the central and state governments based on a pre-determined formula.
There are five main GST rates:
Businesses with a turnover exceeding Rs. 20 lakhs (Rs. 40 lakhs for businesses in certain special category states) are required to register for GST. Even businesses with a lower turnover may need to register if they supply goods and services inter-state or if they are involved in certain specified activities.
GST has several benefits, including:
Input Tax Credit (ITC) allows businesses to offset the GST paid on their purchases against the GST liability on their sales. Claiming ITC can significantly reduce your overall tax burden. To claim ITC, you need to ensure that you have received a proper GST invoice from your supplier and that the item or service purchased is eligible for ITC. You can then claim the ITC by filing your GST returns online.
If your business is required to register for GST but you fail to do so, you may face several penalties, including:
Remember, complying with GST regulations is crucial for avoiding penalties and ensuring the smooth operation of your business.
You can register for GST online through the GST portal.
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