Filing GST returns is not optional. It’s a hard deadline, and once that date slips, the problems begin.
When a taxpayer misses the due date for GST F5 or F8 returns, IRAS doesn’t sit back and wait. The Comptroller of GST can step in immediately. How? By raising an estimated assessment. In simple words, they guess the liability and demand tax on that estimate.
Now, here’s the catch. Along with that estimate comes a 5% late payment penalty. And even if you later file the correct figures, the 5% doesn’t vanish. It’s recalculated based on actual liability. The delay itself is the problem.
On top of this, there’s another sting — a SGD 200 monthly penalty. Once the due date passes, this fee starts clocking up every month the return remains outstanding. It keeps adding until the return is filed, but there’s a ceiling: SGD 10,000 per return.
To put numbers on it: say a return was due 30 April, but it only gets filed on 5 June. That’s two full months late. The penalty? SGD 400 (SGD 200 × 2). And it would keep climbing each month after that.
And if the delays keep piling up, IRAS can escalate. They’re not shy about sending a Court summons, and in more serious cases, even issuing a Warrant of Arrest. What starts as a late form can turn into a legal headache.
Late Submission Penalty
The penalty system works on a very straightforward principle. Miss the deadline, and the clock starts ticking.
There is a possibility of waiver, but it’s not handed out casually. To even qualify for consideration, three things must all line up:
- The business has filed the missing GST returns.
- Any overdue GST has been fully paid.
- For the past two years, the business has been compliant with GST deadlines.
Only if all three boxes are ticked will IRAS even look at an appeal.
Payment collection is also strict. If you’re on GIRO, penalties are simply deducted on the 15th of the next month after the penalty notice. If not, businesses must pay through other channels — internet banking, telegraphic transfers, AXS machines, or even SingPost counters.
But here’s something people miss. Paying the penalty does not close the matter if the return is still outstanding. IRAS can and often will continue with legal action even after penalties are paid, unless the actual return is filed.
Extension of Due Date for Submission
The natural question businesses ask: can we get an extension? The short answer is — almost always no.
The system already gives one month after the accounting period ends to prepare and submit the return. IRAS treats this as reasonable time. So, routine extensions are not available.
That said, there are a few very narrow exceptions. Think extraordinary situations, backed by documents. For instance:
- First-time filers (newly registered businesses) can sometimes get up to one extra month.
- Fire, flood, or natural disaster — with supporting police or insurance reports.
- Serious IT breakdowns — with servicing reports attached.
- Implementation of new software — invoices to prove it.
- Key staff on long medical or hospitalisation leave — supported by medical certificates.
- Corporate restructuring — documented through official notices.
These are granted case by case, and only if applied for before the due date.
And what does not count? A lot of the common excuses businesses try to use. IRAS won’t bend for maternity leave, directors being overseas, staff resigning without handover, or “year-end closing of accounts.” Even lack of computers or inexperienced staff won’t cut it. These are treated as internal management issues, not reasons for extending statutory deadlines.
Why These Penalties Matter
At first glance, a SGD 200 monthly penalty doesn’t sound like much. But penalties stack fast. For a business with multiple late returns, numbers can spiral, especially with the cap of SGD 10,000 per return. And don’t forget the 5% late payment charge on the actual GST due.
But beyond the financial impact lies another problem: reputation. A pattern of late filing paints a business as careless with compliance. This can hurt when applying for loans, grants, or approvals. It’s also not a good look on directors when governance standards are assessed.
The penalties are not just about money. They are about signalling to the market and to regulators whether a business can be trusted to meet its obligations.
Final Thoughts
Singapore’s GST regime doesn’t leave much room for error. One month after the end of the accounting period is considered enough time to get returns ready, and the law expects discipline.
The penalty framework is clear: miss the deadline, pay a price. Keep missing, and the price keeps climbing — eventually even drawing in the courts.
For businesses, the lesson is straightforward. Don’t push GST filing to the last minute. Build it into monthly finance routines, use software where possible, and make sure responsibilities are covered during staff changes or absences.
The penalties are designed to sting just enough to change behaviour. And frankly, the cost of prevention — staying compliant — is far cheaper than the cost of delay.
In a market like Singapore, where regulators and investors watch compliance closely, timely filing is more than a box to tick. It’s part of running a responsible, credible business.
