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By Law: Price Tag Must Include Gst

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http://www.iras.gov....e04.aspx?id=824

GST registered business must show GST-inclusive prices on all price displays (e.g. price tags, price lists, advertisements, publicity brochures, website). Prices that are quoted, whether written or verbal, must also be GST-inclusive. Failure to do so is an offence and offenders may be fined for up to $5000.

It is important for the public to know upfront the final price of goods and services that they have to pay. The following illustration shows the acceptable and non-acceptable price display format:

Price Display Format Acceptable?

$107

Yes

$107 (inclusive of GST)

Yes

$100 +

No

$100 + GST

No

$100 + 7% GST

No

$100 + $7 GST

No

$100 ($107 w/GST)

No

If two prices (i.e. both GST-inclusive and GST-exclusive price) are displayed, the GST-inclusive price must be prominently displayed.

Quoting the following clauses but not the GST-inclusive prices is not acceptable:

  • "Prices stated are subject to GST"
  • "Prices stated are exclusive of GST"
  • "Prices stated are before GST"

Where a GST-registered business intends to give a discount equal to the GST amount to the consumer, it is incorrect to advertise that there is 'no GST' for the goods or services. Such advertising is misleading as there is a GST element in all the goods and services supplied by a GST-registered business.

Exception

An exception is made for businesses in the hotel and food & beverage (F & B) industries only. Due to the imposition of service charge, these businesses may have operational difficulties in displaying GST-inclusive prices. Therefore, they may display GST-exclusive prices for goods and services that are subject to service charge. However, a statement informing customers that prices displayed are subject to GST and service charge must be prominently shown.

Thanks Therat! Lesson learnt from unethical traders...

  • 3 months later...

Your definitely right, businesses should be responsible enough to let buyers know the final price of the products they are selling including the GST to avoid confusion and negative feedback from the buyers.

  • 1 year later...

I just bought some furniture,and price is not include the gst...and now i feel like cheated,coz that company alot complain case...what can i do???

Any questions about Gst, feel free to ask me. I was from IRAS.

I just bought some furniture,and price is not include the gst...and now i feel like cheated,coz that company alot complain case...what can i do???

Send email to iras. Email address for Gst department can get from Iras website.

Provide full facts and your contact number. There are audit/ investigations departments there. They will look into the matter.

  • 1 month later...

Just went furniture shopping today at nova, xclusiv living and rozel furniture. All 3 shops salesman quoted a price and then charge 7% gs t to the quoted price, citing market practice. Seems like a lot of furniture shop also the same.

  • 3 weeks later...

That's sumting I never knew abt Displaying of prices.Thanks for the info.

  • 2 weeks later...

Does this also apply to renovation packages? They print the prices on their brochures without GST, then add the GST after.

  • 1 year later...

According to me If you do not receive a quote from a service provider, you can ask for an itemised account before paying for the service or work done.

Also i think prices can include values of 1-9 cents, even though the lowest value New Zealand coin is 10 cents.

  • 3 weeks later...

Hi,

this is indeed interesting. They must put up the FULL price, not for people to assume that the GST amount and separately.

But here in SG it is common to do otherwise.

And if we complain to CASE or IRAS, still the same, must pay the amount right? Or we can get back the 7% the shop 'hides' as compensation (*wishful thinking*)

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