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Singapore: GST legislative proposal

Singapore: GST legislative proposal

Pending legislation—GST (Amendment) Bill—would grant certain authority to the Inland Revenue Authority of Singapore (IRAS) to address goods and services tax (GST) fraud committed by certain traders.


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The proposal would address what is known as “missing trader fraud” and would enhance anti-avoidance rules to counter certain tax planning arrangements. Missing trader fraud is a scheme whereby a seller charges and collects GST from customers and then absconds with the GST on the sales while businesses along the supply chain continue to claim refunds of the GST on their purchases. Missing trader fraud typically involves goods that are small in size but high in value, such as mobile phones and memory cards.

As proposed, the legislation would vest the IRAS with authority to deny input tax credits to businesses on the basis that the businesses should have known that their purchase was from an entity involved in a missing trader fraud scheme, regardless whether the transaction leads to revenue loss or otherwise.

The effective date of the legislation is proposed to be 1 January 2021.

Read an August 2020 report [PDF 456 KB] prepared by the KPMG member firm in Singapore

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