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In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
(i) 7% to 8% with effect from 1 Jan 2023; and
(ii) 8% to 9% with effect from 1 Jan 2024.
The revenue from the increase in GST will go towards supporting our healthcare expenditure, and to take care of our seniors.
As a general rule, purchases of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on or after 1 Jan 2023 will be subject to GST at 8%.
There are scenarios where one or more of the following events straddle 1 Jan 2023:
In these scenarios, special GST rules will apply. Here are some common scenarios.
Scenario 1
If full payment is received by the supplier for the goods or services before 1 Jan 2023, GST will be chargeable at 7% irrespective of when the goods or services are provided to you.
Scenario 2
If you receive both the invoice and the goods or services before 1 Jan 2023, GST will be chargeable at 7% irrespective of when the payment for the goods or services is made.
Scenario 3
If you make full payment and receive the goods or services on or after 1 Jan 2023, GST will be chargeable at 8% even if the invoice is issued before 1 Jan 2023. In this case, as the original invoice will reflect GST at 7%, the supplier will issue a credit note to cancel the original tax invoice, and issue a new tax invoice that reflects GST at 8%.
On 20 Dec 2022, you purchase goods and receive a tax invoice when the prevailing GST rate is 7%. The supplier receives the payment on 3 Jan 2023 and the goods are delivered on 15 Jan 2023.
GST will be chargeable at 8% since the goods are delivered to you and full payment is received by the supplier after 1 Jan 2023. The supplier will issue you a credit note to cancel the original tax invoice, and a new tax invoice to charge GST at 8%.
GST-registered businesses must display GST-inclusive prices on their price displays to the public. In other words, what you see must be the final price you pay.
From 1 Jan 2023, the prices displayed by GST-registered businesses must be inclusive of GST at 8%. Businesses that are unable to switch their price display overnight may display 2 prices:
(a) One applicable before 1 Jan 2023 showing prices inclusive of GST at 7%
(b) One applicable on or after 1 Jan 2023 showing prices inclusive of GST at 8%
However, they cannot charge and collect GST at 8% before 1 Jan 2023.
Wrong GST practices of businesses include:
To report wrong GST practices of businesses, please write to us by submitting this form.
The Committee Against Profiteering (CAP) was reconvened on 16 Mar 2022, to investigate feedback on unjustified price increases of essential products and services that use the GST increase as a cover.
If a business raises its prices, it is not acceptable for the business to use the GST increase as the reason for raising prices before the GST rate change, nor is it acceptable for a business to raise prices by more than the GST increase after the GST rate change, citing the GST increase as the reason.
If you come across cases of unjustified price increases of essential goods or services that use the GST increase as a cover, please provide your feedback to the CAP. All feedback submitted will be reviewed by the CAP, and further investigated if necessary, to identify businesses that may have engaged in unjustified price increases on the pretext of the GST increase.
For more information, please visit the Committee Against Profiteering’s website.
At Budget 2022, the Minister for Finance announced the Assurance Package for GST to cushion the impact of the planned GST increase, and enhancements to the permanent GST Voucher scheme to provide continuing help to defray the GST expenses of lower- to middle-income Singaporean households, beyond the transitional support covered by the Assurance Package.
For more information, please visit MOF’s webpage on Support for Households, MOF’s FAQs on the Assurance Package for GST, and MOF’s FAQs on the Enhanced Permanent GST Voucher Scheme.
For enquiries on the specific schemes, please refer to the following contact details:
Contact details for Assurance Package for GST
Contact details for Enhanced Permanent GST Voucher Scheme
GST will be chargeable at 7% if full payment is made and received by the supplier before 1 Jan 2023.
If the supplier is able to accept advance payments for the goods and services you purchase and full payment is received by the supplier for the goods or services before 1 Jan 2023, GST will be chargeable at 7%.
You will need to contact your supplier to understand the terms and conditions or policy relating to advance payment.
As the deposit for the wedding banquet is paid and received by the hotel before 1 Jan 2023, GST will be chargeable at 7%.
For the remaining amount payable for the banquet, GST will be chargeable at 8%.
GST will be chargeable at 7% on the tax invoice issued to you on 15 Dec 2022. As payment is received by the cleaning service company after 1 Jan 2023, the company will adjust the GST chargeable to 8% for the part of the services performed on or after 1 Jan 2023.
For example, if the value of services performed on or after 1 Jan 2023 is $800, the supplier will issue:
GST remains chargeable at 7% on the value of services performed before 1 Jan 2023 (i.e. $200).
If you had decided to make full payment and the cleaning service company had received the payment before 1 Jan 2023, GST is chargeable at 7% on the entire service.
GST will be chargeable at 7% on the tax invoice issued to you on 1 Nov 2022. However, as a part of the payment is received by the contractor and a part of the services is performed on or after 1 Jan 2023, the contractor will need to adjust the GST chargeable from 7% to 8% on the lower of:
For example, if the value of the renovation services performed on or after 1 Jan 2023 is $80,000, and the payment received by the contractor on or after 1 Jan 2023 is $60,000, the contractor will issue:
The payment of $40,000 (deposit of $10,000 and progressive payment of $30,000) received by the contractor before 1 Jan 2023 will continue be subject to 7% GST.
© 2022, Government of Singapore
Last updated on 06 September 2022