Need to correct errors in past GST F5 submissions
UPDATES: This article has been updated to include the latest conditions as of 1 Jul 2024 for the administrative concession to adjust for errors in the next GST F5 return.
For businesses that make mistakes in their GST F5 returns, it has become easier to update IRAS of the errors by simply submitting the correct information in their next F5 return. Since 1 Jan 2024, the administrative concession threshold to adjust for errors in your next GST F5 return has been raised from $1,500 to $3,000.
Occasionally, you may discover errors in your past GST returns. You may apply for an administrative concession to correct the error(s) in your next GST F5 return when both of these conditions are met:
- The net GST amount payable in error for all the affected accounting periods is not more than $3,000. Net GST amount payable in error refers to the difference between the additional output tax to be paid in Box 6 and the additional input tax to be claimed in Box 7; and
- The total amount in error for all other boxes except Box 6, 7 and 12 (pre-registration input tax claims) for each of the affected accounting period(s) is not more than 5% of the total value of supplies (Box 4) declared in the submitted GST return. In the case where there was no supply made in the affected accounting period, the 5% rule applies to the total value of the taxable purchases (Box 5).
If you meet both of these conditions, you may correct the error(s) in your next GST F5 return. Otherwise, you will have to submit a GST F7 form to correct the error(s).
The administrative concession is not applicable for errors in the value of pre-registration input tax claims in Box 12 as you may only make pre-registration claims in your first GST return.
Self-assess if the administrative concession is applicable to you by using this calculator.
Scenarios:
Example 1: Company A
Company A spotted the following errors in their GST F5 submissions:
• Duplicate Entry (i.e. input tax overclaimed) for the accounting period 1 Jan 2024 to 31 Mar 2024. The duplicate entry was for $25,000 in Box 5 (Total Value of Taxable Purchases) and a corresponding GST of $2,250 in Box 7 (Input Tax and Refunds Claimed). The Total Value of Supplies declared in Box 4 was $900,000.
• Omission of Standard-Rated Supply of $7,000 and the corresponding GST amount of $490 in its GST F5 submission for the accounting period from 1 Apr 2022 to 30 Jun 2022. The Total Value of Supplies declared in Box 4 was $400,000.
Here's how they calculated their eligibility:
Net GST amount payable in error: Output Tax Error – Input Tax Error = $490 – (–$2,250) = $2,740
Total amount in error for all other boxes except Boxes 6, 7 and 12 is as follows:
1 Jan 2024 to 31 Mar 2024:
- Adjustment to Taxable Purchases / Total Value of Supplies = $25,000 / $900,000 = 2.8%
1 Apr 2022 to 30 Jun 2022:
- Adjustment to Standard-Rated Supplies / Total Value of Supplies = $7,000 / $400,000 = 1.75%
Company A’s adjustments do not exceed the error thresholds.
Conclusion: Company A meets the both the conditions for the administrative concession to adjust these errors in their next GST F5 submission.
Example 2: Company B
Company B reviewed their accounting records for 2022 and 2023, and spotted the following errors in their past GST F5 returns submitted for the following periods:
1 Oct 2022 to 31 Dec 2022:
• They wrongly zero-rated a supply that should have been standard rated. Company B declared $10,000 in Box 2 (Total Value of Zero-rated Supplies) that should have been declared in Box 1 (Total Value of Standard-rated Supplies) and under-charged their customer GST of $700. The Total Value of Supplies originally declared in Box 4 was $250,000.
1 Jul 2023 to 30 Sep 2023:
• They made a double claim of import GST in Box 7 (Total Input Tax and Refunds Claimed) of $2,950. The Total Value of Supplies originally declared in Box 4 was $200,000.
Here’s how they calculated their eligibility:
Net GST amount payable in error: Output Tax Error – Input Tax Error = $700 – (–$2,950) = $3,650
Total amount in error for all other boxes except Boxes 6, 7 and 12 is as follows:
1 Oct 2022 to 31 Dec 2022:
- Adjustment to Standard-Rated and Zero-rated Supplies / Total Value of Supplies = ($10,000 + $10,000) / $250,000 = 8%
1 Jul 2023 to 30 Sep 2023:
- Adjustment to Taxable Purchases / Total Value of Supplies = $0 / $200,000 = 0%
Conclusion: Company B’s errors exceed the administrative concession thresholds. They are required to file a GST F7 for each affected accounting period to correct the errors.
Example 3: Company C
Company C discovered that they omitted an import with a value of $1,600 in their GST F5 return submitted for the accounting period from 1 Oct 2023 to 31 Dec 2023. The value of Box 4 (Total Value of Supplies) was declared to be $80,000. As Company C made the import under the Major Exporter Scheme, the error adjustment would affect the value originally declared in Box 5 (Total Value of Taxable Purchases) and Box 9 (Total Value of Goods Imported under the MES/A3PL/Other Approved Schemes) of the GST F5 return.
Here’s how they calculated their eligibility:
Net GST amount payable in error: Output Tax Error – Input Tax Error = $0
Total amount in error for all other boxes except Boxes 6, 7 and 12 is as follows:
1 Oct 2023 to 31 Dec 2023:
- Adjustment to Total Purchases and Total Value of Goods imported under MES / Total Value of Supplies = ($1,600 + $1,600) / $80,000 = 4%
Conclusion: Company C meets both the conditions for the administrative concession to adjust the errors in their next GST F5 submission.
Important Timeline to Correct Errors
Errors in past GST return(s) should be corrected within five years from the end of the relevant accounting period(s).
Voluntary Disclosure of Errors
You are strongly encouraged to voluntarily disclose and correct any errors within one year of the original return submission deadline. IRAS will not impose additional penalties on errors disclosed within the one-year period.
For more information, visit our guidelines on Voluntary Disclosure of Errors.