In Singapore, GST means the Labor and products Expense, which is a utilization charge collected on the stock of labor and products and the importation of merchandise. This is how, at the most part, one pays and gathers GST:
Consumers: The consumer is the final bearer of the GST. As they buy goods and services, so the inclusion of GST in the selling price is what they pay for. The standard rate of GST in Singapore is 8% but will be increased to 9% on January 1, 2024.
Organizations: The organizations participating charge the GST on behalf of the Government. The GST-registered organizations should charge and collect GST on available supplies from their customers and subsequently remit the collected tax to IRAS. The businesses can, however offset the credits for the GST they paid on business purchases and expenses—input tax—against the GST they collect from customers.
Non-GST Registered Organisations: Organizations with a total value of taxable supplies less than S$1 million in a calendar year do not need to be registered for GST, although they can still do so on a voluntary basis. There are no organisations in Singapore that charge GST on their sales but, at the same time, they are also not able to claim input tax deductions on their purchases.
Imported goods: When goods enter Singapore, GST becomes due at the point of importation. GST is to be paid by the importer to Singapore Customs based on its import value.
Overseas Suppliers: With effect from 1 January 2020, Singapore also requires overseas suppliers making supplies of digital services to Singapore buyers to be registered for GST and charge GST on the supplies if they surpass the registration threshold. This is for the purposes of the Overseas Vendor Registration regime.
In summary, while organizations collect GST on behalf of the government, ultimately the consumers bear the cost of GST as part of their cost price for goods and services.