The guide provides an overview of the Goods and Services Tax (GST) in Singapore. It covers three broad categories: GST Concepts and Principles, GST Administration and GST Schemes.
The Inland Revenue Authority of Singapore (IRAS) has released the sixteenth edition of its e-Tax Guide, GST: General Guide for Businesses, which provides businesses with an updated overview of the Goods and Services Tax (GST) regime.
The guide provides an overview of the Goods and Services Tax (GST) in Singapore. It covers three broad categories: GST Concepts and Principles, GST Administration and GST Schemes.
One of the key updates in this edition relates to the Gross Margin Scheme (GMS). Paragraph 5.7.1 now includes an illustrative example showing how the scheme applies. Under the GMS, GST is calculated on the gross margin—defined as the difference between the selling price and purchase price—rather than on the full value of the goods supplied.
From 1 July 2025, businesses are no longer required to obtain prior approval from the Comptroller to use the GMS. Instead, taxpayers must perform a self-assessment using the Self-Review of Eligibility to Use the Gross Margin Scheme (GMS) checklist, available on the IRAS website.
First introduced in 1994, GST was implemented to broaden Singapore’s tax base by moving away from reliance on direct taxes. GST applies to almost all supplies of goods and services in Singapore, as well as imported goods. Since 1 January 2024, the prevailing GST rate has been 9%.
GST is collected by GST-registered businesses, which act as intermediaries between consumers and the tax authority.
