This page explains the requirements for adjustment of GST rate on your supplies and the concessions that may apply when you transition to the new GST rate.
On this page:
Adjustment of contracts on changes in GST
Generally, you should charge GST at 9% on your supplies made on or after 1 Jan 2024 arising from your existing contracts entered into before 1 Jan 2024. If the contract explicitly excludes any change in the tax charged or has taken the tax change into account, you will be bound by the contract terms and will not be able to revise the consideration. In such cases, you should still account for GST at 9/109 of the total consideration.
Adjustment of GST previously charged
Where you have issued a credit note on your supply affected by the GST rate increase, you should reduce the value of your standard-rated supplies and output tax in the GST return for the accounting period in which the credit note is issued. You should
also maintain supporting documents on the nature and reason of the adjustment.
Information required on the credit note
The credit note must include the following details:
- Headed as “Credit Note”;
- An identifying number;
- Date of issue;
- Your name, address and GST registration number;
- Your customer’s name and address;
- The identifying number and date of issue of the original tax invoice;
- A description to identify the goods or services to which the credit relates;
- Reason for the credit;
- The quantity and value of goods or services to which the credit relates; and
- The rate and amount of tax credited.
Filing of GST return for adjustments of GST
The change in GST rate does not change the way you complete your GST return. Where you need to make adjustments on your supplies spanning the date of rate change, you should declare the adjustments in your GST return for the period in which the adjustment
is made or in accordance with the rate change transitional rules,
where relevant.
Example: Reporting adjustments in the GST return
I have issued a tax invoice with 8% GST charged for my sales of goods on 20 Dec 2023 but the goods are delivered and payment is received on 9 Jan 2024. On 12 Jan 2024, I issue a credit note to cancel the original tax invoice and issue a new tax invoice charging GST at 9% on the supply. How do I report the supply and adjustments in my GST return?
If your quarterly GST return ends in Mar 2024 | You should report the supply and adjustments as follows: (a) In the GST F5 return for the period ended 31 Dec 2023, the original tax invoice charging GST at 8% issued in Dec 2023. (b) In the GST F5 return for the period ended 31 Mar 2024, adjustments for the credit note and the new tax invoice issued in Jan 2024. You should not report the adjustments in (b) in your GST F5 return for the period ended 31 Dec 2023 or file a separate GST F7 for the adjustments. |
|---|---|
If your quarterly GST return ends in Jan or Feb 2024
| You should report in the GST F5 return for the period ended 31 Jan 2024 or 28 Feb 2024 the following: (a) Original tax invoice charging GST at 8% issued in Dec 2023. (b) Adjustments for the credit note and the new tax invoice issued in Jan 2024. |
GST on rebates and returned goods
If you provide rebates to your customer that represent a discount for a past sale, you should calculate the GST on the rebate using the rate that is originally charged on the sale.
On the other hand, if the rebate is used to offset against the value of your next sale to your customer which takes place on or after 1 Jan 2024, you should charge GST at 9% on the net value of the sale.
For returned goods, you should adjust the GST using the rate that is originally charged on your supply of goods and maintain documentary evidence to show whether the goods returned were supplied before or on/after 1 Jan 2024.
Goods exchange
If you have supplied goods to your customer and received payment in 2023, GST would be chargeable at 8%. Subsequently, if you agree to provide an exchange for the original goods on/after 1 Jan 2024, GST is chargeable at 9% only on the additional
consideration (if any) received provided that there is no refund provided to your customer for the original goods purchased.
However, if you provide a refund in cash or store credit to your customer which is subsequently utilized to make payment for other goods or services on/after 1 Jan 2024, GST is chargeable at 9% on the full amount charged for the other goods or services,
including the value of cash/store credit plus any additional consideration received.
Claiming input tax
On or after 1 Jan 2024, you may receive tax invoices showing 8% GST for goods or services which you bought before the rate increase from 8% to 9%. You should claim back the GST based on the GST amount shown on the invoice, subject to the
input tax claim conditions.
List of concessions for GST rate change
Concessions for GST rate change
| Type of concession | Comments |
|---|---|
| 1. Recurring payments made via GIRO deductions and credit card
| Any payment received within the month of Jan 2024 can be treated as payment received before 1 Jan 2024 if the following conditions are met:
|
| 2. Non-recurring payments made via GIRO deductions | Any ad-hoc electronic funds transfer made via GIRO may be treated as received before 1 Jan 2024 if you maintain documentary evidence that the funds were deducted from the customer’s bank account before 1 Jan 2024 and you have received the funds latest by 5 Jan 2024. |
3. Non-recurring payment charged to credit card | Any payment charged to the credit card by 31 Dec 2023 can be treated as payment received before 1 Jan 2024. |
4. Telegraphic transfer (TT) | Any TT instruction received by the recipient bank by 31 Dec 2023 can be treated as payment received before 1 Jan 2024. |
| 5. Payment via AXS, SAM or NETS | AXS, SAM or NETS transaction that takes place by 31 Dec 2023 can be treated as payment received before 1 Jan 2024. |
| 6. E-wallet deductions | If you are a merchant making supplies through an online platform, a payment deducted from a customer’s e-wallet by 31 Dec 2023 can be treated as payment received before 1 Jan 2024, even though the online platform may only disburse the actual payment to you on/after 1 Jan 2024. This is provided you are able to determine that the payment was deducted from your customer’s e-wallet before 1 Jan 2024. |
| 7. Cheque payment | Cheque issued to you in 2023 (e.g. cheque dated in 2023), and presented to the bank by 4 Jan 2024 and cleared successfully can be treated as payment received before 1 Jan 2024. |
| 8. Supplies made through a platform | Where you are a merchant making supplies through a platform, the platform may collect payment from the customer at the prevailing GST rate before subsequently remitting the payment to you at a later date. Strictly, payment is regarded as received when the platform remits payment to you. However, as a concession, you may treat the payment as received before 1 Jan 2024 provided that you are able to determine (with supporting documents) that your customer had made payment to the platform before the rate change. For example, if you maintain evidence that a non-recurring payment was charged to your customer’s credit card by the platform by 31 Dec 2023, you may treat the payment as received before 1 Jan 2024, notwithstanding that the platform may only remit the payment to you on/after 1 Jan 2024. |
| 9. Business operating on or past midnight on the eve of rate change | You can charge 8% GST on sales made on or past midnight and up to 7am of 1 Jan 2024, provided that it has been your normal accounting practice to treat sales made after midnight as sales of the preceding day and your cash register and accounting system are programmed this way. |