As a GST-registered business in Singapore, it is your responsibility to file GST returns. Failure to do so may result in penalties, fines or even prosecution under IRAS regulations. For many business owners – especially first-time filers, GST returns can seem confusing. So, what is GST return?
And how does the filing process work?
GST Return in Simple Terms
Think of a GST return as a report. It’s a summary of the GST you’ve collected from your customers (output tax) and the GST you’ve paid on your purchases (input tax). This report must be submitted to the IRAS (Inland Revenue of Singapore) usually on a quarterly basis.
They use this report to determine your business’s net GST position. If the GST you’ve collected from customers is higher than the GST you’ve paid on purchases, you’ll need to pay the difference to IRAS. On the other hand, if you’ve paid more GST than you’ve collected, you can claim a refund.
Who Needs to File GST Returns?
If your taxable turnover exceeds SGD1 million, you’re required to register for GST. Businesses below this threshold may still opt for voluntary GST registration. Why would businesses do this? Besides input tax claims, your business will look more credible and professional. It may also help when applying for financing and build trust – especially when dealing with other GST-registered businesses.
Once registered, all businesses – whether sole proprietorships, SMEs or large companies, are required to file GST returns with the IRAS, typically on a quarterly basis.
When Do You File GST Returns?
GST returns are typically filed every 3 months (quarterly). IRAS will assign your GST accounting period upon registration. You are required to submit your GST return within one month after the end of each accounting period.
Even if your business has no sales or purchases during the period, you are still required to file a NIL return.
How to File Your GST Return?
- Preparation Stage
Gather Your Documents: Start by preparing all necessary documents, including invoices, purchase receipts, and GST records. Having everything ready ensures a smoother filing process.
Authorised Users: Ensure filing is handled by personnel approved via Corppass. If you are a first-time user, you must set up an account and keep authorisation updated for any changes in responsibilities.
- Submission Stage
Access myTax Portal: Log in to the myTax Portal using your Singpass. Select “File GST Return/Edit Past Return” to proceed. You will receive an acknowledgement page once the summary is submitted.
Refunds: Generally, IRAS processes refunds within 30 days unless your return is specifically selected for a review.
Necessary Details and Forms for Different GST Returns
There are specific details and forms needed before filing your return. This includes:
This is the standard periodic GST return that most businesses file, typically on a quarterly basis. The GST F5 form comes with a summary of the taxable supplies, output tax and input tax claims.
It includes multiple reporting boxes (depending on your business activities) and all amounts must be reported in SGD. Even if there are no transactions, you are still required to file a NIL return by entering ‘0’ in all applicable fields.
- GST F7 Return
This form is used to correct errors in a previously submitted GST F5 return. You’ll need to file this when you identify mistakes in your reported figures. The GST F7 form must be submitted within 5 years from the end of the relevant accounting period.
If the error is significant or involves fraudulent intention, the IRAS may require avoluntary disclosure to be submitted together with the F7.
- GST F8 Return
This is used for final GST returns when your business is cancelling its GST registration. It functions similarly to the GST F5 return but includes final adjustments, like stock or fixed assets that may be subjected to GST before deregistration.
In other words, you are required to account for any business assets held as at the last day of GST registration.
Deadlines and Penalties
IRAS takes GST filing obligations seriously. Missing your submissions deadlines can result in immediate penalties:
- A late filing penalty of SGD 200 is imposed, with an additional SGD 200 for every month the return remains outstanding.
- The total penalty can reach up to SGD 10,000.
You are required to file your GST return within one month after the end of each prescribed accounting period. For example, if your accounting period ends on 31 March, your filing deadline would be 30 April.
Repeated non-compliance may lead to more serious consequences, including court summons, higher fines and even imprisonment. In more severe cases, IRAS may also conduct a GST audit to inspect your business records.
Summary
Filing GST returns is an important aspect of running a business in Singapore. No one is above the law, and GST registration ensures all businesses remain legally compliant. All things considered, filing your returns can be confusing.
There are many things to consider, and missing important details can lead to penalties. So don’t hesitate to reach out for help if needed, we’d be happy to help.
Contact us to find out more!
