Goods and Services Tax, commonly abbreviated as GST, is defined as a consumption tax imposed on the sale of most goods and services. It also includes taxes imposed on all imports into Singapore. The main objective of implementing GST is to lower corporate and personal income tax rates, as well as shift the dependence from regular direct taxes to indirect taxes. This tax implementation would be profitable to attract many international investors while maintaining sustainable economic growth that would create more job opportunities. GST was first introduced on April 1, 1994 with a rate of 3%. In 2003, the rate was increased to 4% and was further increased to 5% in 2005. Furthermore, it currently stands at 7%. However, there are some special cases where the above rate does not apply, and the GST remains at 0%. For example: • Exporting goods • Supplier shipping products to an overseas address • Services classified under International Services • Airline tickets • And local estate agents selling homes in Australia How does GST work? GST is a tax that ultimately -the consumer of a product/service satisfies and does not increase the company's costs. In this case, the company in question simply acts as an intermediary between the state and the consumer and its task is to collect said tax. Furthermore, GST was designed to include output tax and input tax. Ideally, output tax is the tax collected by the seller on the sale of goods or services, while input tax refers to the tax acquired on business expenses and purchases, which include the importation of goods. In this regard, this article presents a clear relationship between the above taxes and the following are eminent:1. RetailerA retailer...... means of paper ......can allow people to register their company voluntarily as they can claim input tax. However, if a company needs to claim input tax, the following conditions must be met: • It must be registered as GST • The goods/services must be supplied or imported by you (the company concerned) • The input taxes are directly related to the tax Included or taxable supplies • The goods/services must be used exclusively for business purposes • The requests do not cover any of the expenses indicated under GST Regulations 26 and 27 However, the benefit you receive for being GST registered exceeds the related costs. For example, most companies have experienced a huge increase in administrative costs related to record keeping. Therefore, directors of such companies should find a cost-benefit trade-off. For more information, you can visit http://www.iras.gov.sg/irashome/default.aspx.