Goods and Services Tax GST
Stands for: Goods and Services Tax
A broad-based consumption tax, similar in mechanics to VAT, used in countries such as Australia, India, Singapore, Canada, and New Zealand.
Definition
What it is
Goods and Services Tax (GST) is essentially the non-European label for a value-added consumption tax. It is multi-stage, allows input-tax credit, and falls economically on the end consumer. Singapore charges 9% (raised from 8% in 2024), Australia 10%, New Zealand 15%, and Canada uses a 5% federal GST plus provincial sales taxes or harmonised HST. India runs a dual GST with a Central GST (CGST), a State GST (SGST), and an Integrated GST (IGST) for inter-state and import flows.
Mechanics
Like VAT, GST registration is triggered by turnover thresholds (SGD 1m in Singapore, AUD 75k in Australia, INR 20-40 lakh in India) and by certain cross-border activities. Returns are typically monthly or quarterly, with annual reconciliations in jurisdictions like India (GSTR-9). Reverse-charge applies to imported services and certain B2B flows so that the recipient self-accounts for the tax.
Why founders care
GST registration changes invoicing, pricing, and cash-flow dynamics. In Singapore, voluntary registration is common for B2B exporters who want to recover input tax even though their sales are zero-rated. In India, GSTIN is part of the operating reality of every B2B transaction.
When you'll encounter it
You will run into GST when expanding into the Asia-Pacific region, when crossing local registration thresholds, when importing services that trigger reverse-charge, and when invoicing local customers who require a tax-compliant document with a GSTIN or ABN to claim their own input credit.
Used in our guides
- Can Indonesian Citizens Open a Company in Singapore? Complete 2026 Guide
- How to Register a Company in Singapore: Complete 2026 Guide
- Singapore GST Guide: 9% Rate, Registration, and Filing
- Singapore Free Trade Zones: Changi, Jurong, and Licensed Warehouses
- Singapore Company Formation: Step-by-Step 2026 Guide
FAQ
Is GST the same as VAT?
In substance yes - both are multi-stage consumption taxes with input-credit mechanisms. The label varies by country.
Do I need to register for GST in Singapore from day one?
Only if your taxable turnover exceeds SGD 1 million in a 12-month period, though voluntary registration is allowed and often beneficial for B2B exporters.
How does Indian GST differ?
India uses a dual model: CGST + SGST on intra-state supplies and IGST on inter-state and import supplies, with monthly returns and an annual reconciliation.
References
- IRAS - GST overview (Singapore) https://www.iras.gov.sg/taxes/goods-services-tax-(gst)
- GST Council of India https://gstcouncil.gov.in/