1. Introduction to Import GST Deferment Scheme (IGDS)
Goods and Services Tax
Introduction to Import GST Deferment Scheme (IGDS) 1

2. Content Import GST Deferment Scheme (IGDS) Introduction
Qualifying Conditions
Responsibilities of IGDS Business
Differences between IGDS and MES
Misuse of Scheme
Application Process
Where to get more information?

3. Introduction Current Situation
Import GST is collected by Singapore Customs (SC) on all goods imported into Singapore, except where:
Relief has been granted under the GST (Imports Relief) Order; or
Importer is under an import GST suspension scheme (e.g. Major Exporter Scheme)
Business without any GST schemes will need to pay GST upon importation and can only claim back at the time when it files its GST return
At point of importation (1 Oct)
Pay import GST to SC
End of GST period (31 Oct)
Prepare GST return
Submission of GST return (30 Nov)
Make input tax claims for import GST
Time lapse between payment of import GST and claiming it back as input tax

4. Introduction Import GST Deferment Scheme (IGDS)
In Budget 2010, IGDS was introduced with the aim to help GST-registered businesses which suffer tighter cash flow as a result of importing goods.
Payment of import GST is being deferred from the time of importation to the filing of GST return. This allows importers a credit period of 1 to 2 months, similar to what businesses enjoy for their local purchases.
Takes effect from 1 October 2010
Approved businesses will be able to enjoy IGDS status for a period of 3 years till next review
At point of importation (1 Oct)
Need not pay import GST upfront to SC
End of GST period (31 Oct)
Prepare GST return
Submission of GST return (30 Nov)
Pay deferred import GST to IRAS
Make input tax claims for import GST
Cash flow eased

5. Introduction GST Reporting NEW! NEW!
Import GST Deferred
IGDS Section
“Total Value of Goods Imported under IGDS”
“Deferred Import GST Payable”
Importation of Goods Eligible for Input Tax Claims
Box 5
“Total Value of Taxable Purchases”
Box 7
“Input tax and refunds claimed”
Approval date on permit:
12 October 2010
Declared in GST return for period:
1 October to 31 October 2010
NEW!
NEW!

6. Introduction 30 Nov 2010 GST Reporting and Payment
Numerical Comparison:
Start of GST Accounting Period
1 October 2010
Import goods with import GST amounting to $10,000
12 October 2010
Normal Rules
Pay import GST of $10,000 upfront to SC
IGDS
Need not pay import GST of $10,000 to SC
Sell goods with output tax amounting to $15,000
20 October 2010
End of GST Accounting Period
31 October 2010
Pay $5,000 to IRAS
Pay $15,000 to IRAS
30 Nov 2010
GST Reporting and Payment
Normal Rules
Box 6: Account $15,000 output tax
Box 7: Claim $10,000 input tax
Pay $5,000 net GST
IGDS
Pay $5,000 net GST before GST deferment
New Box: Account $10,000 deferred import GST
Pay $15,000 net GST

7. Introduction Scope of IGDS
To import goods in the course or furtherance of your business
To import goods belonging to an overseas principal for sale in Singapore or re-export in the capacity of a GST agent (i.e. Section 33(2) or Section 33(A) agent)
IGDS will apply to both dutiable and non-dutiable overseas goods under the following circumstances:
Direct imports
Imports released from Zero-GST/Licensed warehouses into local market
Not applicable to customs or excise duties

8. Qualifying Conditions
GST-registered for at least 3 years
Letter of guarantee (GST-registered < 3 years)
Business is active and solvent
Not under bankruptcy, liquidation, receivership or judicial management
Have been importing or will be importing goods for business purposes
Under monthly GST accounting period
Active GIRO account with IRAS for GST payment
Deduction will be made on the 15th day of the month after the due date for payment
Good compliance records with Singapore Customs
No major violation of Singapore Customs’ regulations and requirements

9. Qualifying Conditions
Good compliance records with IRAS
Good history of payment for GST and other taxes
Prompt submission of GST returns
No overdue GST and other taxes
No overdue GST returns
Good internal controls and proper accounting records
Complete Assisted Self-help Kit (ASK)
As safeguard against risks:
May impose letter of guarantee prior to approval or during the validity period of the scheme; or
Reject application

10. Responsibilities of IGDS Business
Satisfy all qualifying conditions at all times
IGDS may be revoked at any time if any of the qualifying conditions is not met
Once revoked, business is to make immediate arrangements with Singapore Customs for the payment of import GST on subsequent importations
If there are material changes in the nature of your business such that you no longer meet the qualifying conditions, you are to notify IRAS immediately.
Value of imports must be reported promptly and accurately in GST return
Valid permits and relevant supporting documents must be maintained for 5 years
IGDS status is not transferable

11. Responsibilities of IGDS Business
Operational Procedures
Clear goods at importation with the relevant permits
TradeNet user and registered with Singapore Customs
Appoint authorised declaring agent
Online Declaration of Agents via myTax Portal
Maximum of 20 authorised declaring agents

12. Differences between IGDS and MES
Target Group
Importers
Has been importing or will be importing goods with good compliance records with SC and IRAS
Major exporters
Zero-rated supplies > 50% of total supplies or
Value of zero-rated supplies > S$10 million for past 12 months
Payment of Import GST
Deferred until the submission of GST return, applies to dutiable goods
Suspended, does not apply to dutiable goods
Major Requirements
1. Monthly GST reporting
2. GIRO payment
3. Complete ASK
Submit Positive Assurance Report

13. Misuse of Scheme Late payment penalties
Late submission of GST returns
Late payment in accounting for deferred import GST
Import goods that are not for the purpose of your business or under any other permissible situations constitute an offence
Re-pay the amount of GST that has been deferred in an unauthorised manner
IGDS status revoked
Possible imposition of penalties and criminal prosecution
This scheme is akin to the government granting credit terms on paying of import GST. As the payment of the import GST is now tied to the filing of GST return and it becomes even more important for businesses to file on time. Therefore, only businesses with good compliance records would be allowed into the scheme. Any late filing will constitute late payment of import GST that ought to be paid at the time of importation and would subject the business to late payment penalties.

14. Application Process
To apply for IGDS status, you are required to submit the following documents:
A duly completed and signed application form GST F22
Review Section 1 (GST Practices) and Section 2 (Pre-filing Checklist) of ASK
A duly completed "ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors"
Review Section 3 of ASK (i.e. Carry out self-review of GST returns filed in past financial year)
Application form GST F22 can be downloaded from > Quick Links > Tax forms > GST

15. Application Process Successful applications
Notified by the Comptroller of GST in writing
IGDS status is valid for 3 years
Any other prior approved GST schemes relating solely to imports will be terminated

16. Application Process No Yes Applications made before 1 April 2011
Submitted Section 3 of ASK (i.e. Annual Review)?
Interim 1-year IGDS status will be granted
Submit ASK Declaration Form within 1 year of successful interim IGDS?
IGDS status will be terminated
IGDS status extended for another 2 years
IGDS status will be valid for a period of 3 years No
Yes

17. Where to get more information?
TradeNet® Declarations for IGDS:
Singapore Customs’ circular on TradeNet® declaration procedures for IGDS. The circular will cover the following areas:
Application for IGDS TradeNet® Permits (for import GST to be deferred with Singapore Customs)
Rectification of erroneous declarations for IGDS permits (under-declaration or over-declaration of the import value in IGDS permit)
General information on IGDS:
IRAS e-Tax Guide on IGDS