1. All GST-registered businesses are required to show GST-inclusive prices on all price displays to the public. If both GST-inclusive and GST-exclusive prices are displayed, the GST-inclusive price must be displayed at least as prominently as the GST-exclusive price.
2. This can be displayed on price tags, price lists, advertisements, publicity brochures, website, etc. Prices that are quoted, whether written or verbal, must be GST-inclusive as the public needs to know the final price they have to pay upfront.
3. Failure to comply with this price display requirements can result in a fine of up to $5,000.
4. If you are GST-registered and intend to give a discount equal to the GST amount to your customer, you should not advertise that there is ‘no GST’ for the goods or services. Such advertising is misleading as GST is included in the price after the discount, and you will still need to account for and pay the GST amount to IRAS.
5. If the price is subject to bargaining, the price displayed or quoted must still be inclusive of GST. The amount of GST to be accounted for by the business will be the tax fraction (9/109) of the final price paid by the customer.
6. Exception is granted to hotels and food & beverage (F&B) establishments that impose service charge on their goods and services. They are not required to display GST-inclusive prices to ease their operations. Otherwise, they may have to display separate price lists for dine-in and take-away items, or to re-compute prices whenever the establishment reduces or waives the service charge.
7. However, they must still display a prominent statement informing customers that the prices displayed are subject to GST and service charge. Those who do not comply with the price display requirement could be subject to a fine.
8. GST-registered businesses must comply with this GST price display requirements. As a GST-registered business, your responsibilities include charging and accounting for GST, filing GST returns on time, keeping proper records and displaying prices inclusive of GST. These responsibilities must be fulfilled from the effective date of GST registration of your business.
9. Please contact us if you need any assistance. At PL Biz Consulting Pte Ltd, we have the right people and expertise to help guide and explain to you on how to go about complying with IRAS GST requirements..
