24 GST bill amendments to watch out for

These new GST exemptions and schemes will soon be implemented.

The Ministry of Finance has accepted for implementation 24 of the 57 suggestions on the draft Goods and Services Tax (Amendment) Bill 2012. The suggestions were received during the public consultation exercise held from 2 to 27 July 2012, and will be incorporated into the revised Goods and Services Tax (Amendment) Bill 2012 or IRAS’ e-Tax guides.

The key changes include:

• GST exemption on the import and supply of investment-grade gold and precious metals;
• A new Approved Refiner and Consolidator Scheme to relieve cash flow for refiners and local consolidators of precious metals, and enable them to claim input tax to make the first exempt supply of investment-grade precious metals after refining;
• Extension of the scope of GST zero-rating of prescribed financial services relating to goods situated outside Singapore;
• Allowing the Comptroller and Minister to set conditions when granting GST remission;
• Extension of the Temporary Removal Scheme to goods that are removed temporarily from approved warehouses for repairs; and
• Allowing zero-rating of repair services performed on qualified goods outside the Approved Specialized Warehouse.

The remaining suggestions were not accepted for implementation as they are inconsistent with the policy objectives for the proposed legislative changes or legislative drafting conventions. A summary of the key suggestions received on the draft Goods and Services Tax (Amendment) Bill 2012 and MOF’s responses can be viewed in full here.