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Import GST Deferment Scheme (IGDS) Singapore – Improve Cash Flow on Imports

Businesses importing goods into Singapore often face significant cash flow pressure as import GST must generally be paid upfront to Singapore Customs before it can later be recovered through the GST return.

To alleviate this cash flow burden, the Inland Revenue Authority of Singapore (“IRAS”) introduced the Import GST Deferment Scheme (“IGDS”). Under IGDS, approved GST-registered businesses may defer the payment of import GST until their monthly GST returns are due.

What is the Import GST Deferment Scheme (IGDS)?

The Import GST Deferment Scheme (“IGDS”) is a GST scheme administered by IRAS to help businesses defer the payment of import GST.

Under normal GST rules:

GST on imported goods is payable at the point of importation to Singapore Customs.

Under IGDS:

approved businesses may defer the import GST payment until the due date of their monthly GST return.

This allows businesses to:

account for the deferred import GST; and
claim the same amount as input tax in the same GST return (subject to normal input tax recovery conditions).

As a result, businesses may significantly reduce the cash flow impact arising from import GST.

Benefits of IGDS

Improved Cash Flow Management

Businesses do not need to pay import GST upfront at the point of importation.

Reduction in GST Funding Costs

IGDS reduces the financing burden caused by the time gap between:

paying import GST; and
recovering the GST through GST returns.

Efficient GST Recovery

Deferred import GST and input tax claims are generally reported within the same GST return cycle.

Who Can Apply for IGDS?

Businesses applying for IGDS must generally:

be GST-registered in Singapore;
have good GST compliance records;
maintain proper accounting and internal control systems; and
satisfy IRAS’ qualifying conditions.

Businesses approved under IGDS are generally required to:

file GST returns monthly; and
maintain proper import documentation and permit records.

Scheme	IGDS	MES
GST treatment	GST payment deferred	GST suspended
GST return filing	Monthly filing required	Normal GST filing cycle
Main purpose	Defer import GST payment timing	Suspend GST on imports
Suitable for	Regular importers	Major importers/exporters

Need Assistance with IGDS? How Jed Tax Consulting Can Help.

If your business imports goods regularly into Singapore, IGDS may significantly improve your working capital and cash flow efficiency.

At Jed Tax Consulting, we assist businesses with:

IGDS applications;
GST compliance reviews;
monthly GST reporting;
import GST reconciliation; and
ASK and ACAP support;

Contact Jed Tax Consulting to discuss: