Claiming GST Incurred Before GST Registration

GST incurred before a business is registered for GST can be claimed if certain conditions are met. IRAS has produced a reference guide on this topic covering how claims are assessed, the conditions for claiming pre-registration GST, and the documents required to support a claim.

The first step is to complete the “Pre-registration GST Checklist for Self-Review of Eligibility of Claim” below, which assesses your eligibility to claim GST incurred on business purchases made before GST registration. The checklist also includes a calculator to help you compute the amount of pre-registration GST claimable.

Conditions for Claiming Pre-Registration GST on Goods

A business must satisfy all of the following conditions to claim pre-registration GST incurred on goods:

1. The goods are purchased or imported by the business for the purpose of making taxable supplies (standard-rated supplies and zero-rated supplies).
2. For goods acquired within 6 months before the date of GST registration, the goods are still held by the business at GST registration.
3. For goods acquired more than 6 months before the date of GST registration, the goods have not been consumed (i.e. used) or supplied by the business before the date of GST registration.
4. The pre-registration GST claim is not disallowed under Regulations 26 and 27 of the GST (General) Regulations.

Conditions for Claiming Pre-Registration GST on Property Rental, Utilities, and Services

A business must satisfy all of the following conditions to claim pre-registration GST incurred on property rental, utilities, and services:

1. The expenses are incurred by the business for the purpose of making taxable supplies (standard-rated supplies and zero-rated supplies).
2. The expenses are incurred by the business within 6 months before the date of GST registration.
3. The expenses are not directly attributable to supplies made by the business before the date of GST registration.
4. The pre-registration GST claim is not disallowed under Regulations 26 and 27 of the GST (General) Regulations.

Apportionment of Pre-Registration GST

Pre-registration GST is allowable only to the extent that the goods or services acquired are used, or are to be used, for taxable supplies made after GST registration.

If some of the goods acquired within 6 months before the GST registration date have since been sold, transferred, or disposed of, the GST incurred must be apportioned according to the actual units still held at the GST registration date.

If goods acquired more than 6 months before the GST registration date have been used to make supplies straddling GST registration (i.e. supplies made both before and after GST registration), or have been partially consumed before GST registration, the GST incurred must also be apportioned.

Similarly, if services, property rental, or utilities acquired by the business are used to make supplies straddling GST registration, the GST incurred must be apportioned — only the portion attributable to supplies made after registration is claimable.

Documents to Maintain to Claim Pre-Registration GST

To claim pre-registration GST incurred on goods, a business must maintain a stock account showing:

• quantities purchased
• quantities used in the making of other goods
• date of purchase
• date and manner of subsequent disposal, for both quantities purchased and quantities used in the making of other goods

For services, a business must maintain a list showing:

• description of services purchased
• date of purchase
• date of disposal of the service (if any)

In addition, claims must be supported by evidence such as tax invoices, import permits, and payment evidence.

When and How to Claim Pre-Registration GST

Pre-registration GST should be claimed in the first GST return, provided all the conditions above are satisfied. The value of taxable purchases and the corresponding GST amount should be included in Box 5 and Box 7 of the return respectively.