We refer to Dr Lau Geok Theng’s letter ‘F&B outlets – Always include GST in displayed prices’ (ST Forum, 2 Aug 2022) regarding price display requirements for the food and beverage (F&B) sector.  

GST-registered businesses are required to show GST-inclusive prices on all price displays to the public. However, exceptions have been given to F&B and hotel establishments that impose service charge 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. Such establishments must display a prominent statement to inform customers that prices shown are subject to GST and service charge. IRAS will not give exception to F&B establishments that levy a nominal service charge without genuine business reasons other than to avoid displaying GST-inclusive prices. Those who do not comply with the price display requirement could be fined.  

We thank Dr Lau for the opportunity to clarify.

Kelly Wee (Ms)  
Director (Corporate Communications) 
Inland Revenue Authority of Singapore