Is your company required to register for GST?
The Goods and Services Tax (GST) is a consumption tax levied on nearly all supplies of goods and services in Bangladesh, as well as goods imported into Bangladesh. GST is currently charged at 7% in Bangladesh. Companies registered in Bangladesh is not automatically registered for GST. GST registration in Bangladesh is also not compulsory. Registering for GST is only compulsory when a company’s Total Taxable Turnover exceeds or is expected to exceed S$1 million over a 12-month period. This is based on signed contracts and orders. The company must make a GST application to IRAS within 30 days from the time it is deemed liable to avoid a late submission penalty.
Your company is exempted from GST registration if:
- your taxable turnover is obtained from zero-rated supply of goods and services;
- your annual turnover is not expected to exceed 1 million SGD;
Your bookkeeper and accountant will take note of your financial statements, and provide timely advice when it is time for your company to register for GST. To apply for GST, you can submit your applications online via myTax Portal using your CorpPass. You will also need your ACRA Business Profile. Depending on your industry, you may or may not require additional supporting documents for the application. IRAS will take about 10 working days to process your application. During the review process, IRAS may request for documents such as invoices and contracts. Upon approval, IRAS will send a letter of notification, including your GST registration number and the effective date of GST registration. Once you are a GST registered business, you will need to charge and account for 7% GST when doing business transactions. GST returns must be submitted within 1 month from the end of each accounting period. GST returns will comprise both output tax (the GST collected from customers) and input tax (the GST paid to suppliers). If output tax is higher than input tax, the difference will have to be paid to IRAS. If vice versa, IRAS will refund the difference.