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Penalty for Late Submission of GST Returns

Have you filed your GST returns yet? If you haven’t you need to hurry, because all GST-registered businesses are required to file their returns or risk a stricter penalty being imposed.

Businesses in Singapore which are registered for GST are required to file their returns and pay the GST due amount (if any) within a month after the end of the accounting year period which is covered by the GST return. Even if the company’s GST registration is NIL, it must be filed despite the lack of business activity during the accounting period.

IRAS takes filings seriously, and action will be taken against the businesses which do not file their GST returns on time, or those who fail to file at all.

 

What Sort of Action Would IRAS Take?

IRAS may take the following actions if a business fails to comply with filing their GST returns at the given timeframe:

  • Issue a Warrant of Arrest
  • Impose a late submission penalty
  • The person responsible for running the business will be summoned to Court.
  • An estimate Notice of Assessment (NOA) may be issued, in addition to a 5% late payment penalty on the estimated tax.

Upon receipt of an NOA, it is mandatory for businesses to immediately file their GST returns and declare the actual GST liability amount. This must be done for the NOA to be revised.

Businesses or sole proprietors will be at risk of being summoned to court if they fail to file their GST returns online, and/or they pay the late submission penalty by the due date. Businesses will still be required to file their outstanding GST returns, and failing to do so may result in further prosecution actions being taken against them.

Businesses may also be at risk of being issued with a Warrant of Arrest if they do not attend the court hearing, pay the summons fee at least one week before the court date, or if they did not file their GST returns on time.

 

Penalty Imposed for Late Submission

Beginning 1st April 2018, a late submission penalty of $200 will be imposed with immediate effect if a business’s GST returns are not filed by the stipulated due date. For every completed month that the GST filing continues to be outstanding, an additional fee of $200 will be added on for every month until the maximum of $10,000 is reached for each outstanding return.

Penalties will not be waived unless there is evidence of an exceptional circumstance involved.

 

How to File Outstanding Documents

Any current or past GST accounting period may be viewed online at the myTax Portal using your SingPass or an IRAS Pin. You may file your GST returns at this portal.