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GST Rate in Singapore 2025: Taxable, Nil Rated and Exempt Supplies

Updated on: Feb 10th, 2025

17 min read

The Goods and Services Tax, an indirect tax in Singapore, was designed to support economic stability and growth. It’s one of the most important financial pillars in Singapore, significantly impacting how businesses operate. As of 2025, the GST rate in Singapore is 9% for all taxable goods and services (except for nil-rated).

With the GST rate change, as laid out by the Inland Revenue Authority of Singapore (IRAS), it has become even more important to be at par with the recent amendments.

This guide provides a comprehensive overview of GST rate in Singapore, including taxable supplies, zero-rated and exempt supplies, and out-of-scope supplies, and how its charged.

What is GST in Singapore?

Goods and services Tax (GST) is a consumption-based indirect tax levied on the supply of most goods and services in Singapore. It is charged to consumers, collected by businesses, and paid to the government.

How is GST charged in Singapore?

Businesses charge GST at every point of production and sale and report to the government.
The GST is already included in the price that the consumer pays for the good or service purchased. Therefore, the final end user/consumer ultimately pays the tax.
Businesses then collect GST from the consumers and pass on that money to the government.

GST Rate in Singapore 2025

The GST rate is the percentage levied on the value of goods and services to arrive at the amount of tax payable. The different types of GST rates in Singapore depend upon the categories as identified by the government.

Taxable Supplies

Supply of goods or services that are covered under the ambit of GST, either at a standard rate of 9% or zero-rated supplies, taxed at 0%.

Type	Standard-rated Supplies (9%)	Zero-rated Supplies (0%)
Goods	Most local sales, e.g., a TV sold in a Singapore retail shop	Export of goods, e.g., laptops shipped to overseas customers
Goods	Sale of imported low-value goods, e.g., tennis racquets bought online
Services	Local services eg. restaurant services, spa services.	International services, e.g., air tickets from Singapore to Thailand
Services	Imported services, e.g., overseas marketing services

Non-Taxable Supplies

Non-taxable supplies are either exempt from GST or fall under out-of-scope supplies, where GST does not apply.

Exempt Supplies: These are goods and services for which GST is not charged. Businesses making exempt supplies cannot claim GST credits on their purchases.

Out-of-scope Supplies (No GST): These are transactions that fall outside the scope of GST, meaning no GST is applicable at any stage of the transaction. Therefore, these transactions need not be reported in the GST returns as well.

Type	Exempt Supplies (No GST)	Out-of-scope Supplies (No GST)
Goods	Sale/rental of unfurnished residential properties Investment precious metals	Goods delivered overseas without entering Singapore Goods sold within a Free Trade Zone. Sales made within Zero GST Warehouse
Services	Financial services, e.g., issuing debt securities Digital payment tokens, e.g., Bitcoin exchanged for fiat currency	Private transactions- non-business activities carried out without any compensation or expectation of it.

History of GST Rates in Singapore

GST was introduced in Singapore on 1 April 1994. Since then, GST rates have evolved from 3% in 1994 to 9% in 2025. Here’s a breakdown of the history of GST.

Year	GST Rate
1 Apr 1994 to 31 Dec 2002	3%
1 Jan 2003 to 31 Dec 2003	4%
1 Jan 2004 to 30 June 2007	5%
1 Jul 2007 to 31 Dec 2022	7%
1 Jan 2023 to 31 Dec 2023	8%
From 1 Jan 2024	9%

Scope of GST

GST is levied on:

Goods and services supplied in Singapore by GST-registered businesses.
Goods imported into Singapore, unless exempt (e.g., investment precious metals or granted import relief).
Imported services procured from overseas, including B2C digital services provided by foreign suppliers (from 1 Jan 2020) and B2B imported services via reverse charge.

GST Collection Process (Example):

GST is a consumption-based tax, meaning it is ultimately borne by the final consumer. The GST collection process is simple: Businesses collect GST on sales from consumers (output tax), claim credits (input tax) for the GST paid on business purchases/expenses, and then remit the difference of output tax and input tax to the government. This ensures tax is paid only on the value added at each stage of the supply chain.

Here’s an example to understand this cycle better:

A bakery sells a cake to a café for S$100, which includes S$9 GST (9% of S$100).
The café pays the S$100 but can reclaim the S$9 GST from the government.
The café sells the cake to a customer for S$150, which includes S$13.50 GST (9% of S$150).
The customer, as the final consumer, pays the full S$13.50 GST.
After reclaiming the initial S$9 GST, the café remits S$4.50 to the government (the GST on the added value).

How to Calculate GST?

GST is calculated as a percentage of the selling price of goods or services. The formula is:

GST Amount = (Price × GST Rate) / 100

For example, if a product costs $200 and the GST rate is 9%, the GST amount will be (200 × 9) / 100 = $18. The total price, including GST, will be $218.

Key Transitional Rules for GST Rate Change 2025

The IRAS GST rate change, from 8% to 9%, applicable from 1 January 2024, follows a structured set of transitional rules so that businesses can smoothly adjust to the change. Below is a simplified breakdown of how businesses can navigate through these changes.

Scenario	Details
Time of supply rule	GST rate is based on the earlier of invoice date or payment date. For imported services (OVR), it depends on the posting date or payment date. The Basic Tax Point (delivery date) is crucial for transactions spanning the rate change.
Scenario 1: Invoicing in Arrears	Full supply before 1 Jan 2024: Invoice/payment after 1 Jan can be 8% or 9%. Partial supply before 1 Jan 2024: GST at 8% on the earlier portion, 9% on the rest.
Scenario 2: Advance Receipt	Full payment before 1 Jan 2024: GST remains 8%, even if supply is later. Full payment after 1 Jan 2024: GST 9% for supply after, 8% for supply before. Partial payment before 1 Jan 2024: GST 8% for paid part, 9% for unpaid part. Credit note & new invoice required.
Scenario 3: GST on Imported Services	Reverse Charge Mechanism (RCM) applies at 9% for services imported on or after 1 Jan 2024. Further, time of delivery/payment is considered if considering both the rates.
Scenario 4: Import of Low-Value Goods	GST applies to imported low-value goods & non-digital services from 1 Jan 2023.

Conclusion

The GST rate is set at 9% in Singapore as of 2025. The new rate structure should be followed by both businesses and consumers alike. It is important that GST-registered businesses understand the types of GST Rates in Singapore and adhere to the updated regulations for smooth operations.

The key to managing the changes and minimizing disruptions lies in businesses being well-informed about the GST rates and transitional rules.