In the course of conducting your business activities, you may have incured 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 are 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 private 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 into your GST Return. Wrongful claims of GST input tax is an offence under the GST Act. Businesses may be penalised 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.
Disallowed GST Input Tax Claims

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