Something about GST that you should be aware of

[bartman]

Just something on GST that i found today that i would like to share with you guys...


As many of us might have notice quite sometime already, some retailers or sales person started quoting prices of products for retail without adding the GST component to make the product seem cheaper.

As I was reading another thread of a fellow CS member's "bad shopping experience", I remember a long time ago, when GST first started, GST before and after price have to be made known to the consumer. But i am not too sure if it is still the same case today. So, i did a search today just to double check and this is what i found.


Below is an extract from the pages of IRAS GST Guide for Retailers.



Extract from Page 1
This guide is designed to give retailers a better understanding of the Goods & Services Tax and its impact on their retail trade.

It has been prepared based on the Goods and Services Tax Act 2001 (Cap 117A) and the Goods and Services Tax (General) Regulations 2001.


Extract from Page 9
4. RETAILERS' SPECIAL INTEREST AREAS

4.3.1 Is it mandatory to display price tags which are inclusive of GST?

Yes, all prices displayed, advertised, published or quoted by a taxable person for any supply of goods or services should be inclusive of GST, unless prior approval has been sought from the Comptroller of GST to do otherwise.




So, based on the guide item 4.3.1, all retailers are to quote prices with the GST component added. They are not allow to do otherwise unless approved by Comptroller of GST.

 

[SNAG]

Extract from Page 9
4. RETAILERS' SPECIAL INTEREST AREAS

4.3.1 Is it mandatory to display price tags which are inclusive of GST?

Yes, all prices displayed, advertised, published or quoted by a taxable person for any supply of goods or services should be inclusive of GST, unless prior approval has been sought from the Comptroller of GST to do otherwise.
[/QUOTE]

Interesting find - but if you look closely, they are referring to price tags per se, and not other forms of quotation (i.e. quotations, verbal or otherwise).

So I don't think this would be applicable in this case - some retailers have been quoting prices w/o GST for quite some time already.

 

[C J GOH]

This is excatly what Parissilk at Holland V did to me early this year...
..quoted me a low price, then when I show up to buy the lens, he gives me a price with GST!

It's not a big difference, around $20 more, but just felt it's a dirty trick...

err.. I vowed to myself NEVER to patronize them again...

 

[shgfun]

this is generally the case for sim lim shops, just make sure you know the rough price beforehand, and compare a few shops before commit if you do want to buy there. I've asked several shops there for things before, they all quote you prices before GST.

 

[vince123123]

Actually I read it a little differently. The question was asking about price tags, but the answer is more comprehensive, covering all prices "displayed, advertised or quoted". Hence the answer answered more than the question asked, and covers any prices which are displayed (tags), advertised (newspapers or posters or whatever) and quoted (verbally, over the phone, by email, by faxed quotation etc).

Extract from Page 9
4. RETAILERS' SPECIAL INTEREST AREAS

4.3.1 Is it mandatory to display price tags which are inclusive of GST?

Yes, all prices displayed, advertised, published or quoted by a taxable person for any supply of goods or services should be inclusive of GST, unless prior approval has been sought from the Comptroller of GST to do otherwise.

Interesting find - but if you look closely, they are referring to price tags per se, and not other forms of quotation (i.e. quotations, verbal or otherwise).

So I don't think this would be applicable in this case - some retailers have been quoting prices w/o GST for quite some time already.[/quote]

 

[thengz]

This is excatly what Parissilk at Holland V did to me early this year...
..quoted me a low price, then when I show up to buy the lens, he gives me a price with GST!

It's not a big difference, around $20 more, but just felt it's a dirty trick...

err.. I vowed to myself NEVER to patronize them again...

Go to JO, they quote all their prices inclusive of GST... And great service to boot! Only thing is, if you try to call their office, they hardly pick up the phone. ;p

 

[sk.images]

Anyone that has been in Singapore for more then a week, particularly residents should be fully aware of how things are (legalities aside) and always ask is the price inclusive of GST. Very simple, takes 2 seconds. You can't blame a shopkeeper for your own laziness or ignorance (whichever applies).

 

[Del_CtrlnoAlt]

well, when i do quotations, mine is normally written...

i'd write a line below, prices subjected to GST...

Probably you need to read my mind if i quote you over the fone... lol... (its gonna be a big bubble above me)

cos when we get PO or we issue PO, its easier to have it without GST.

 

[Galdor]

Go to JO, they quote all their prices inclusive of GST... And great service to boot! Only thing is, if you try to call their office, they hardly pick up the phone. ;p

Where's JO bro? Sorry to OT bros.

 

[Leong23]

Where's JO bro? Sorry to OT bros.

John 3:16 at Funan Centre.

Yesterday just brought a lens from Lords, the price is inclusive of GST too.

 

[paradigm]

Go to JO, they quote all their prices inclusive of GST... And great service to boot! Only thing is, if you try to call their office, they hardly pick up the phone. ;p

maybe they are too busy servicing the front desk clients liao ...

how many shops quickly "drop" their front end clients to pick up phones? As a customer, I guess u wouldn't like it ...

 

[thengz]

maybe they are too busy servicing the front desk clients liao ...

how many shops quickly "drop" their front end clients to pick up phones? As a customer, I guess u wouldn't like it ...

Yep, thats what i figured. But like I said, their customer service is excellent. :thumbsup:

 

[sk.images]

If you're talking great customer service, then I have to say the service I received today from Southern Cross @ Lucky Plaza today, was exceptional. Not only did I get a great price on my new cam, but they were, very helpful & friendly, professional, extremely polite and after my purchase, have gone out of their way to help me with something else at no charge. They promissed to look after anyone I send there, so ask for Eddie and mention my name. :thumbsup:

Back to the point, when I first went in to enquire they quoted me (verbally) both the ex-GST price and the inc-GST price (after consulting the calculator).

 

[vince123123]

Hmm what name should we mention? Cybermonkey sounds a bit weird to use hehe

 

[waileong]

I disagree, Vince. A "Guide" is not enforceable. You'd have to find the subsidiary legislation, read out the chapter and par. I'd also like to see the penalties involved if it is really in subsidiary legislation.

I think the intent of this guide is clear, ie to ensure sellers don't charge GST wrongly. I don't think it applies to quotes.

Vince, even if you're right, I see this as a subsidiary legislation that few know about and which will not be proactively enforced. The latter makes this like S377A.

Can you imagine what would happen if the govt started enforcing this? How silly and anti-business would it make them look?

 

[night86mare]

If you're talking great customer service, then I have to say the service I received today from Southern Cross @ Lucky Plaza today, was exceptional. Not only did I get a great price on my new cam, but they were, very helpful & friendly, professional, extremely polite and after my purchase, have gone out of their way to help me with something else at no charge. They promissed to look after anyone I send there, so ask for Eddie and mention my name. :thumbsup:

Back to the point, when I first went in to enquire they quoted me (verbally) both the ex-GST price and the inc-GST price (after consulting the calculator).

can you imagine

if i went there and said

cyber monkey sent me, gimme a good price

i think they give me one scared look, then go and pick up the phone to call woodbridge :bsmilie:

gst or not, you can always protect yourself. certainly i do not agree with the way of quoting without gst, because that's essentially not the price you're paying.. a good method is to quote both. but if shop x quotes without gst, and shop y quotes with gst, shop y would tend to lose out because everyone often forgets about gst. so no one does it, i guess.

 

[vince123123]

Waileong, you are absolutely correct to say that a "guide" is not enforceable, so are guidelines issued.

I was merely providing an interpretation to what is said in the guide (ie interpretation of the words per se), without really giving any opinion on whether it is enforceable or not.

However, now that you have reminded me on this, let me go poke around to see if there are any obligations imposed in subsidiarly legislation It would then be useful for all of us here if I manage to unearth anything.

I disagree, Vince. A "Guide" is not enforceable. You'd have to find the subsidiary legislation, read out the chapter and par. I'd also like to see the penalties involved if it is really in subsidiary legislation.

I think the intent of this guide is clear, ie to ensure sellers don't charge GST wrongly. I don't think it applies to quotes.

Vince, even if you're right, I see this as a subsidiary legislation that few know about and which will not be proactively enforced. The latter makes this like S377A.

Can you imagine what would happen if the govt started enforcing this? How silly and anti-business would it make them look?

 

[SolBadGuy]

Well, there are alot of shops that quote prices with GST to entice you to walk into their shops. This is nothing new. It's good practice to always ask if the GST has been included. Typically, I find that shops selling electronic goods often (if not always) quote prices EXCLUSIVE of GST.

Go to JO, they quote all their prices inclusive of GST... And great service to boot! Only thing is, if you try to call their office, they hardly pick up the phone. ;p

Yeap, JO is well known for their service standards and competitive pricing. They are also well known for being super busy, so a call to their office will most likely be futile. But there have been fellow CSers who got the mobile number of Samuel, one of the guys there, for easier contact.

If you're talking great customer service, then I have to say the service I received today from Southern Cross @ Lucky Plaza today, was exceptional. Not only did I get a great price on my new cam, but they were, very helpful & friendly, professional, extremely polite and after my purchase, have gone out of their way to help me with something else at no charge. They promissed to look after anyone I send there, so ask for Eddie and mention my name. :thumbsup:

Back to the point, when I first went in to enquire they quoted me (verbally) both the ex-GST price and the inc-GST price (after consulting the calculator).

Perhaps the rise of another reputable shop? Lucky Plaza has sooooo many shops selling the same range of goods. I guess some of them have grown smarter, choosing to develop PR and give prices that are more competitive to build up their clientele and base of regular customers, which will of course, in the long run, generate much more revenue, and ensure their survival and sustainability.

Hmm what name should we mention? Cybermonkey sounds a bit weird to use hehe

LOL. I concur with this. Cybermonkey does seem abit weird to use. ;p Unless, of course, that's the name you gave them. :bsmilie:

 

[vince123123]

Okay first up, here's a link as to more IRAS guidelines as to what they actually mean (and it appears my initial interpretation is correct):

http://www.iras.gov.sg/ESVPortal/gst/gst_c.7.3_price+display+for+goods+and+services.asp

Now, on to whether these guides are supported in law.

I've included an extract from the Goods and Services Tax (General) Regulations which supports the above guidelines as follows:


Price to include tax
77. —(1) Where any taxable person displays, advertises, publishes or quotes in any manner the price of any supply of goods or services he makes or intends to make, such price shall include the tax that is chargeable on the supply under the Act unless the Comptroller approves otherwise under regulation 78.
(2) Paragraph (1) shall not apply to any display, advertisement, publication or quotation which is intended solely for the purpose of making the supply to a taxable person and which is in a form not ordinarily available for distribution to the public. Exemption
78. —(1) Any taxable person who desires to be exempted from the requirement under regulation 77, shall apply to the Comptroller in such form and manner as the Comptroller may determine.
(2) The Comptroller may, if he thinks fit, approve in writing the application, subject to such conditions as he may impose.
(3) The Comptroller may, for reasonable cause, at any time revoke any approval granted under paragraph (2). Hope the above helps explain a bit more.

Waileong, you are absolutely correct to say that a "guide" is not enforceable, so are guidelines issued.

I was merely providing an interpretation to what is said in the guide (ie interpretation of the words per se), without really giving any opinion on whether it is enforceable or not.

However, now that you have reminded me on this, let me go poke around to see if there are any obligations imposed in subsidiarly legislation It would then be useful for all of us here if I manage to unearth anything.

 

[sloth]

Habit liao..... I always ask "With GST?" unless it's a place I know well. Usually if it is, then they will simply say "Yes", and it's all good..

I don't really care about non-GST price. It's like shopping online, you need to calculate your total cost of ownership: base price, exchange rate, shipping cost, applicable taxes, whatnot..