1. What is GST registration?
GST registration means a business must:
• Charge 9% GST on taxable supplies
• File GST returns (usually quarterly)
• Pay GST collected to IRAS, net of allowable input GST
GST registration can be mandatory or voluntary. Mandatory registration arises under two tests: retrospective (past turnover) and prospective (expected future turnover).
2. The S$1 Million Threshold — What It Really Means
The S$1 million threshold refers to taxable turnover, not profit, cash received, bank balances, a single invoice, or financial year revenue.
It refers to total taxable supplies measured under GST rules.
3. Retrospective GST Registration (Calendar-Year Test)
IRAS assesses taxable turnover on a calendar-year basis (1 January to 31 December).
If taxable turnover exceeds S$1 million in a calendar year, the business must register for GST.
Deadline:
The application must be submitted within 30 days after the end of the calendar year, typically by 30 January of the following year.
Example:
2024 turnover: S$980,000 – no obligation
2025 turnover: S$1,150,000 – GST registration required by 30 January 2026
The measurement resets each calendar year, but once the threshold is exceeded, the obligation to register arises and continues unless IRAS approves deregistration.
4. Effective Date for Retrospective Registration
IRAS assigns a fixed effective GST registration date based on its rules.
GST is not recalculated invoice-by-invoice, but from the effective date onward GST must be charged and accounted for.
Late registration can therefore create cash-flow and pricing risks.
5. Prospective GST Registration (Forward-Looking Test)
Separately, a business must register for GST if, at any point in time, it reasonably expects taxable turnover to exceed S$1 million in the next 12 months.
This expectation may arise from signed contracts, expansion plans, fundraising, or entry into new markets.
Registration must be done within 30 days of forming this expectation.
Prospective registration avoids backdated exposure and allows GST to be charged correctly from day one.
6. What Counts Toward the S$1 Million
Included:
• Standard-rated supplies (9%)
• Zero-rated supplies (e.g. exports, overseas services)
• Service and commission income
• Singapore business income
Excluded:
• Exempt supplies such as interest, dividends, sale of shares, and residential property
• Certain out-of-scope overseas supplies
7. Common Misunderstandings
- GST is not based on financial year revenue
• Not charging GST does not remove liability
• Zero-rated supplies still count toward turnover
• Waiting for IRAS notification can result in penalties
8. Deregistration
A business may apply for GST deregistration only if taxable turnover is below S$1 million and it does not expect to exceed S$1 million in the next 12 months.
Deregistration is subject to IRAS approval and is not automatic.
9. One-Line Client Explanation
In Singapore, GST registration is triggered either when taxable turnover exceeds S$1 million in a calendar year or when it is expected to exceed S$1 million in the next 12 months. Once triggered, registration continues unless IRAS approves deregistration.
10. How Assembly Works Assists
- GST turnover assessment
• Registration planning and IRAS liaison
• Accounting system GST setup
• Ongoing GST compliance and advisory