GST Audit Rules: Major IRAS Compliance Pitfalls and Penalty Risks

IRAS targets GST fraud: Singapore’s IRAS routinely audits GST-registered businesses to combat fraud, particularly missing trader schemes. Offenders face denied input tax claims, steep financial penalties, and potential imprisonment, underscoring the importance of accurate reporting and voluntary error disclosure.
GST refund scrutiny intensifies: IRAS closely monitors low-value GST refund claims. Audits may include onsite inspections, document reviews, and interviews to ensure refunds are legitimate. Taxable persons are urged to review past GST returns and correct discrepancies proactively.
Common GST errors outlined: IRAS highlights typical mistakes uncovered during audits, encouraging businesses to identify and report errors voluntarily. Failure to do so could result in penalties up to double the tax underpaid and imprisonment for submitting false GST returns.
High-risk areas flagged: Businesses selling non-residential properties and sole proprietors with underreported GST are under increased IRAS scrutiny. Conducting internal audits and disclosing inaccuracies early can reduce or eliminate penalties, helping ensure long-term GST compliance.