Singapore Fines First Retailer For Failure to Display GST-Inclusive Prices

by CFO Innovation Asia Staff, 30 July 2012

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Silver River Furniture Pte Ltd., a furniture retailer, is the first GST-registered business to be charged in court for not showing GST-inclusive prices at its premises and on its marketing materials.

Silver River has to pay a total fine of S$4,000 (US$3,202) for four charges of failure to comply with GST (General) Regulations on price displays. Another two similar charges were taken into consideration by the court for the purposes of sentencing.

GST-registered businesses must show GST-inclusive prices on all displays, advertisements, publications and quotations to the public, whether quoted verbally or in writing.

The only exception is businesses in the hotel and food & beverage industries - they are allowed to display GST-exclusive prices for goods and services that are subject to service charge. Failure to display GST-inclusive prices to the public is an offence and carries a fine of up to S$5,000 (US$4,004).

Following a tip-off from a member of the public, IRAS conducted investigations into the alleged offences and found that two of Silver River’s advertisements in the Straits Times on 28 Jan and 4 Feb 2012 showed pictures of furniture and prices together with a small print stating ‘All prices exclude delivery & GST’.

When IRAS officers visited Silver River’s showrooms at 5 Little Road Comtex Industrial Building on 31 Jan 2012, they found that Silver River had displayed GST-exclusive prices for some of its items and price displays that carried the statement ‘All prices are exclusive of GST’ in small print.

An advertisement that was posted on Silver River’s website in Feb 2012 had also not complied with the price display requirements under GST (General) Regulations.

This was not the first time that Silver River had contravened the GST price display requirements. Despite receiving a few warnings from IRAS for similar offences in the past, Silver River had repeatedly failed to comply with GST price display requirements.

For the offences, Silver River was found guilty of four charges for failing to show prices inclusive of GST on its advertisements, at its showroom premises and on its company website and was ordered to pay a total fine of $4,000.

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