Wrongful collection of GST by GST-registered persons

Key requirements

Wrongful collection without reasonable excuse or through negligence can attract penalties and prosecution. IRAS considers the facts, efforts to establish the correct treatment and whether the amount was paid without demand. The examples distinguish a genuine first-time misunderstanding already accounted for from negligent tax coding on clearly exempt residential property. Reporting a supply as exempt while retaining separately collected GST is not a safe correction. Review the transaction, invoice and amount remitted, and use the appropriate correction or clarification process. Distinguish this registered-person guidance from the separate disclosure form for businesses that were never registered.