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IRAS said it conducts regular audit programmes to detect anomalous GST refund claims and ensure they comply with the rules.<\/p>\n
In 2025, more than 1,300 businesses making GST refund claims were audited, uncovering various forms of non-compliance, including incorrect GST filings and unsupported refund claims, it said.<\/p>\n
These audits resulted in a recovery of more than S$100 million in taxes and penalties.<\/p>\n
“While most non-compliance is due to poor internal controls or incorrect application of GST rules, IRAS\u2019 audits also uncover fraudulent GST refund claims,” the authority said.<\/p>\n
IRAS warned that it will take firm action against those who attempt to abuse the GST system.<\/p>\n
Those convicted of deliberate GST fraud may face a penalty of three times the amount of tax undercharged, in addition to a fine not exceeding S$10,000 and\/or a jail term of up to seven years.<\/p>\n
The authority added that businesses that identify errors in their submissions are encouraged to make voluntary disclosures to correct these errors, as reduced penalties may apply.\u00a0<\/p>\n
“IRAS will treat such disclosures as mitigating factors when considering actions to be taken.”<\/p>\n<\/div>\n