Implementation Of Revised Singapore Import Gst Rate

During the Budget Day Speech in 2022, the Government declared an increase in the Singapore Goods and Services Tax (GST) rate from 8% to 9%, effective from January 1, 2024.

Consequently, starting January 1, 2024, all imported goods and those released from licensed premises for local consumption after December 31, 2023, will be subject to the new GST rate of 9%.

Importers are advised to ensure clearance of their goods by December 31, 2023, for In-Payment (GST) and In-Payment (Duty and GST) permits, which were obtained at the 8% GST rate.

It is important to note that as of January 1, 2024, requests for extending the validity period of permits will not be accepted for these In-Payment (GST) and In-Payment (Duty and GST) permits obtained at the 8% GST rate.

In cases where an importer has acquired an In-Payment (GST) or In-Payment (Duty and GST) permit at the 8% GST rate but cannot clear the goods by December 31, 2023, the importer can still use the permit after that date, provided it is within the permit validity period. However, the importer must obtain a GST Short-Payment permit ("SPGST" permit) to account for the 1% GST short-payment for the goods prior to cargo clearance.

For the GST Short-payment permit ("SPGST" permit), the importer needs to declare specific information in the permit fields, including Message Type, Declaration Type, Place of Receipt Code, Previous Lot Number (Original TradeNet permit number with GST rate of 8%), HS code, Item CIF/FOB Value, and GST rate (set at 1%).

For In-Payment (GST) and In-Payment (Duty and GST) permits obtained at the 9% GST rate, importers may declare them from December 25, 2023, onwards, if they intend to clear the goods on or after January 1, 2024. This approach aims to minimize the necessity for importers to obtain separate GST Short-Payment permits ("SPGST" permits).

If an importer has obtained an In-Payment (GST) and In-Payment (Duty and GST) permit at the 9% GST rate but clears the goods before January 1, 2024, they may seek a refund of the overpaid 1% GST from Singapore Customs provided they are a non-taxable person. If the importer is a taxable person and the duty/GST was deducted via IBG from their bank account registered with Singapore Customs, they can claim the total GST paid as input tax from the Inland Revenue Authority of Singapore (IRAS).