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Time of supply
In general, you are to account for GST at the earlier of the following events:
- When an invoice is issued; or
- When payment is received.
For more details, please refer to the e-Tax guide on GST: Time of Supply Rules (PDF, 435KB).
Special time of supply rule for gold
For sale of gold, you have up to 90 days from the date of delivery of the gold to issue a tax invoice and account for GST, if you have not received payment and fixed the gold price for invoicing purpose at the time of delivery.
When you receive payment for the gold, including partial payments, within the 90-day period, you must account for GST and issue a tax invoice for the amount received on the date of payment. This is regardless whether the gold price is fixed.
If gold price is not fixed by the 90th day
You must account for GST and issue a tax invoice based on the open market value (OMV) of the gold on the 90th day.
If you have received payment, including partial payments, within the 90-day period, you only need to account for GST and issue a tax invoice/ credit note on the difference between the OMV of the gold on the 90th day and the payment received.
When the gold price is subsequently fixed, you need to account for GST and issue another tax invoice/credit note on the difference between the OMV on the 90th day and the fixed gold price.
Example: Price of gold not fixed up to 90th day
You sell gold jewellery under the following arrangement.
|
Delivery of gold on |
1 Feb 2024 |
|---|---|
|
90th day from delivery of gold OMV of gold is $1,000 |
1 May 2024 |
|
After 90 days from delivery of gold Price fixed at $1,200 |
1 Jul 2024 |
The price has not been fixed and payment is still outstanding on the 90th day.
As the price was not fixed by the 90th day, you have to issue a tax invoice and account for GST of $90 on the OMV of $1,000 on the 90th day i.e. on 1 May 2024.
Subsequently, on 1 Jul 2024, you should issue another tax invoice to account for the additional GST of $18 due to the difference between the OMV and the fixed price which amounted to $200 ($1,200 - $1,000).
Deposits from customers
When the deposit forms part payment for the gold jewellery, GST has to be accounted for on the deposit at the time it is received.
FAQs
My customer traded their old gold jewellery in for a new piece of gold jewellery. The trade-in value of the old gold jewellery is $1,200. The value for the new gold jewellery is $1,500 (inclusive of workmanship fee of $30). How should I account for the GST on the sale?
A trade-in transaction is treated as two separate supplies for GST purposes, unless otherwise specified or allowed by IRAS, and you need to charge GST on the value of your goods supplied. For more information, please refer to Trade-ins.
However, as an administrative concession for the trade-in of gold jewellery only, you can choose to charge GST on the difference between the value of the new gold jewellery inclusive of workmanship fee and the trade-in value of the old gold jewellery. See the table below on the amount of GST to be accounted for in this scenario.
| Value of new gold jewellery (inclusive of workmanship fee $30) | $1,500 |
| Less: Trade-in value of old gold jewellery | $1,200 |
| Amount payable excluding GST | $300 |
| GST @ 9% on $300 | $27 |
| Amount payable including GST | $327 |
This administrative concession for trade-in applies to gold jewellery only, and does not apply to the trade-in of other goods, such as gold bar, even if these goods are traded in for gold jewellery.
With effect from 1 Jan 2025, the administrative concession for trade-in of gold jewellery is applicable only when the customer is not registered for GST at the time of supply. For more information, please refer to e-Tax guide GST: GST and the Gold Jewellery Industry (PDF, 300KB).
For clarity, it is not compulsory for traders to apply the administrative concession for trade-in of gold jewellery. Traders who are unable to distinguish whether their customers are registered for GST at the time of supply from 1 Jan 2025 can choose not to apply the administrative concession. In this case, the normal GST rule on trade-in applies.
My customer traded their old gold jewellery in for a new piece of gold jewellery. The trade-in value of the old gold jewellery ($1,600) is higher than the value of the new gold jewellery ($1,500, inclusive of workmanship fee of $30). How should I account for the GST on the sale?
A trade-in transaction is treated as two separate supplies for GST purposes, unless otherwise specified or allowed by IRAS, and you can choose to charge GST on the value of your goods supplied. For more information, please refer to Trade-ins.
However, as an administrative concession for the trade-in of gold jewellery only, you are allowed to charge GST on the difference between the value of the new gold jewellery and the trade-in value of the old gold jewellery.
As the price difference is negative ($1,500 - $1,600 = -$100), no GST will be charged on the gold. GST will only be charged on the workmanship fee of $30.
This administrative concession for trade-in applies to gold jewellery only, and does not apply to the trade-in of other goods, such as gold bar, even if these goods are traded in for gold jewellery.
With effect from 1 Jan 2025, the administrative concession for trade-in of gold jewellery is applicable only when the customer is not registered for GST at the time of supply. For more information, please refer to e-Tax guide GST: GST and the Gold Jewellery Industry (PDF, 300KB).
For clarity, it is not compulsory for traders to apply the administrative concession for trade-in of gold jewellery. Traders who are unable to distinguish whether their customers are registered for GST at the time of supply from 1 Jan 2025 can choose not to apply the administrative concession. In this case, the normal GST rule on trade-in applies.
I am a gold jewellery retailer and provide refabrication services. My retail customer provides old gold jewellery to me and requests that it is refabricated into new gold jewellery according to the customer’s requests. Can I apply the administrative concession for trade-in, since the transaction involves gold jewellery?
No, you cannot apply the administrative concession for trade-in of gold jewellery, as there is no trade-in in this transaction. Your retail customer retains the ownership of the old gold jewellery provided to you for refabricating into new gold jewellery.
If you are only providing the refabrication services to your customer, you are required to charge and account GST on the value of the supply of the refabrication services to your retail customer.
I am a gold jewellery manufacturer. My customer, a gold jewellery wholesaler consolidates old gold jewellery procured from corporate customers (e.g. gold jewellery retailers) as scrap gold and sends to me to be refabricated into new gold jewellery according to their requests. I only charge my customer a refabrication service fee. Can I apply the administrative concession for trade-in since the transaction involves gold jewellery?
No, you cannot apply the administrative concession for trade-in of gold jewellery as there is no trade-in in this transaction. Your customer retains the ownership of the old gold jewellery provided to you for refabricating into new gold jewellery.
If you are only providing the refabrication services to your customer, you are required to charge and account GST on the value of the supply of the refabrication services to your customer.
Does the 90-day special time of supply rules for determining time of supply apply to the sale of other types of jewellery?
GST for sale of other types of jewellery is to be accounted for based on the normal time of supply rule. You have to account for GST on your supply at the earlier of the following:
- When an invoice is issued; or
- When payment is received.
I sell gold to an overseas customer and the gold will be hand-carried out of Singapore via Changi International Airport. How do I account for GST on the sale?
Effective 1 Apr 2009, the Hand-Carried Exports Scheme (HCES) is applicable if you wish to zero-rate your supply to overseas customers for goods (including gold) that are hand-carried out of Singapore via Changi International Airport.
You need to maintain all the documents required under HCES to support zero-rating of your supplies. The person bringing the goods out of Singapore can either be a local person (e.g. your employee) or a foreigner (e.g. your customer's employee).
For information on how HCES works, the documents to be maintained and how to report GST on your supply, please refer to:
GST: Guide on Hand-Carried Exports Scheme (PDF, 353KB)