6 August 2015
On 21 July 2015, the Inland Revenue Authority of Singapore (IRAS) had updated its website for filing of GST F7 (Return for Disclosing Errors on GST Returns Filed Previously).
Businesses are to file GST F7 to correct any errors made in the submitted GST F5 (Return for Periodic Filing of GST)/ F7 (Return for Disclosing Errors on GST Returns Filed Previously)/ F8 (Return for Final Filing of GST forms).
However IRAS has allowed, as an administrative concession, businesses to correct errors made in the next GST F5 provided both of these criteria are met:
- The Net GST amount in error (i.e. output tax error – input tax error) for all the affected prescribed accounting periods is not more than $1,500; and
- The total non-GST amounts in error for (each of) the affected accounting period(s) is not more than 5% of the total value of supplies declared in the submitted GST return (i.e. Box 4). 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 (i.e. Box 5).
GST F7, however should be filed when the errors affect Boxes 9 to 12 of past GST F5 or were made in the last return, GST F8.
Claims for GST overpaid or wrongly paid, or GST due can also be made by filing GST F7.
IRAS provides for a timeline of five years from the end of the relevant accounting period(s) for correction of errors.
Penalites for incorrect GST returns range up to 200% of the tax undercharged and a fine and imprisonment term. Voluntary disclosures can be made by requesting the GST F7 through the myTax Portal and e-filing within 14 days from the date of request.