Increase in threshold for GST error correction

Last updated on 5 April 2024

In recognition of the hike in GST to 9% from 1 January 2024, IRAS has revised the threshold for corrections on errors made in GST filings. The prescribed amount has been raised to S$3,000 from S$1,500 previously. Errors made in a GST filing period, can be corrected in the next GST filing period if the following criteria are met:

  1. For all impacted prescribed accounting periods, the net GST amount in error (i.e., any output tax error less any input tax error) is not greater than S$3,000 and
  2. For every affected accounting period that needs to be adjusted, the total of all non-GST amounts in error cannot exceed 5% of the total value of supply reported in the filed GST return (i.e. Box 4). The 5% rule shall instead be applied to the entire amount of the taxable purchases reported in the filed GST return (i.e. Box 5) if no supplies were made during the relevant accounting period.

Only mistakes made in boxes 1 through 7 of the GST F5 forms are eligible for the concession. Any errors affecting the remaining boxes must be corrected for the impacted period(s) using a GST F7 corrective return.

Businesses should engage accounting firms in Singapore with GST compiling experience to prevent GST filing errors. Businesses may be penalised for up to 200% of the tax undercharged for submitting incorrect GST returns and liable to a fine and imprisonment term. Businesses that commit fraud may be dealt with more severely.