Absorbing GST

Key Requirements

If a registered seller absorbs GST, the amount collected is treated as inclusive of tax. At the current 9% rate, extract GST using 9/109 and report the remaining amount as the standard-rated supply. For S$10,000 collected, output tax is S$825.69 and supply value S$9,174.31, reported in Boxes 6 and 1 respectively. A full tax invoice must still show GST separately. A receipt or simplified invoice may show the inclusive price with the required indication that the payable price includes GST. Do not report S$10,000 as pre-tax revenue and simultaneously treat it as the final inclusive amount. The decision to absorb tax is a pricing choice; it does not convert a taxable sale into an exempt one.