IRAS updates e-Tax Guide, ‘GST: Approved Refiner and Consolidator Scheme (Second Edition)’

6 May 2013

On 29 April 2013, the Inland Revenue Authority of Singapore (IRAS) issued an updated version of the e-Tax Guide, ‘GST: Approved Refiner and Consolidator Scheme (2nd Edition)’.

This e-Tax Guide provides details of the Approved Refiner and Consolidator Scheme (ARCS). The scheme is a measure to ease cash flow and compliance of qualifying refiners and consolidators of Investment Precious Metals (IPM) in their payment of GST on import and purchase of raw materials as announced by the Deputy Prime Minister and Minister for Finance in his 2012 Budget Statement, as well as to relieve input tax incurred in their refining activities. These benefits aim to develop a new IPM refining and trading cluster in Singapore.

This Guide covers the following:

  • Benefits of the ARCS for qualifying refiners and consolidators
  • Eligibility conditions and application procedure for the ARCS for refiners and consolidators, and
  • Responsibilities and reporting requirements under ARCS for approved refiners and consolidators.

With effect from 1 October 2012, the importation and supply of IPM in Singapore are exempt from GST. IPM for GST exemption purposes refers to gold, silver or platinum in the form of a bar, ingot, wafer and coin which meets certain criteria. The supply of IPM for export continues to be zero-rated, provided that the relevant export documents are maintained.

Concurrently from 1 October 2012, the ARCS was introduced. An ARCS person will enjoy the following benefits:

  • GST suspension on importation of goods
  • Waiver of GST payment on goods supplied between ARCS persons, and
  • Special input tax recovery for ARCS persons, as compared to the input tax claims allowable under normal GST rules following the GST exemption of IPM.

To give legislative effect to the scheme, amendments have been made to section 37B of the GST Act and regulation 46A of the GST (General) Regulations.

In this second edition, amendments made to following paragraphs to align with the GST legislation for the ARCS:

  • Giving legislative effect to the scheme (paragraph 2.3)
  • Input tax claims by an Approved Consolidator who is a non-bank (paragraphs 4.21, 4.22, 4.24)
  • Conditions of eligibility for the ARCS for qualifying refiners (paragraph 5.2)
  • Application procedure – submission of documents (paragraph 6.2)
  • Cessation of ACRS (paragraph 11.3).

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.