Disallowed GST Input Tax Claims

In the course of conducting your business activities, you may have incurred GST input tax through purchases of goods or services from GST-registered suppliers or importing goods into Singapore. If your business is a GST-registered business, you are able to claim this input tax incurred when submitting the monthly or quarterly GST Return to IRAS.


However, it is important for you to know that not all of the GST input tax incurred can be claimed, as this is specifically disallowed under Regulations 26 and 27 of the GST (General) Regulations. GST input tax incurred on the following expenses are not claimable:


  1. Private benefits provided to the family members or relatives of your staff
  2. Costs and running expenses incurred on privately registered motor cars (can claim GST input tax for commercial vehicles)
  3. Club subscription fees (including transfer fees) charged by sports and recreation clubs
  4. Expenses incurred on company cars of which the COE has been renewed or extended on or after 1 Apr 1998
  5. Expenses incurred on rental cars hired for use on or after 1 Jul 1999
  6. Medical expenses incurred for your staff unless they are obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act
  7. Medical and accident insurance premiums incurred for your staff unless the insurance or payment of compensation is obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act
  8. Any transaction involving betting, sweepstakes, lotteries, fruit machines, or games of chance.
 Therefore, it is essential that you do not include the above-mentioned GST input tax in your GST Return. Wrongful claims of GST input tax are an offense under the GST Act. Businesses may be penalized for up to 200% of the tax undercharged or over-claimed for the submission of incorrect GST returns, and be liable to a fine and imprisonment term.
Want to know more? Contact a GST expert in Singapore!


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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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