From 1 July 2025, IRAS will extend the grace period for GST registration under the prospective basis. This change applies to businesses that can reasonably project their taxable turnover to exceed S$1 million over the next 12 months.
What Has Changed
| Before 1 July 2025 | From 1 July 2025 | |
| When to apply for GST registration | Within 30 days after the forecast date | No change |
| When does registration take effect | 31 days after forecast date | Two months from the forecast date |
Example:
If a business reasonably expects on 1 July 2025 that its taxable turnover will exceed S$1 million in the next 12 months, it must apply for GST registration by 31 July 2025. GST registration will take effect on 1 September 2025, and the business must begin charging GST from that date.
What This Means for Businesses
- More time to prepare – the extended grace period provides businesses with additional time to prepare for GST registration and implementation.
- Update systems, processes and communications – Businesses can use the additional time to review and adjust invoicing, accounting, and pricing systems and processes, as well as contracts, quotations and customer communications to align with the effective GST registration date.
- Shift in pre-registration claim period – As registration will take effect later, the 6-month window for pre-registration input tax claims will also move forward accordingly.
Key Takeaway
The extended grace period gives businesses extra time to get ready for GST registration. If your turnover is expected to exceed S$1 million, use this time to check your systems, update pricing, and communicate changes to customers so you are fully prepared when GST takes effect.