IRAS updates GST registration rules, introducing a two-month grace period for businesses forecasting turnover above SGD 1 million from July 2025.
The Inland Revenue Authority of Singapore (IRAS) has updated its Goods and Services Tax (GST) registration guidance to address registration requirements based on a prospective view.
Under the revised rules, businesses that can reasonably expect their taxable turnover to exceed SGD 1 million within the next 12 months must apply for GST registration within 30 days of making the forecast. Currently, registration takes effect on the 31st day after the forecast date.
However, for forecasts made on or after 1 July 2025, registration will take effect two months from the forecast date, following an announcement by the Second Minister of Finance on 28 February 2025. The change introduces a two-month grace period before businesses are required to begin charging GST.
To substantiate a forecasted turnover of SGD 1 million, IRAS requires supporting documents such as signed contracts or agreements, accepted quotations or confirmed purchase orders, invoices showing fixed monthly fees, or income statements indicating turnover nearing the threshold with an upward trend.
Registration is not required if the forecast lacks certainty and is based solely on market assessments, business plans, or sales targets without confirmed income.
