What is the Import GST Deferment Scheme (IGDS)?
The Import GST Deferment Scheme (IGDS) was introduced in Singapore in the 2010 Budget to help GST-registered importers manage cash-flow pressure. Under IGDS, importers are permitted to defer the payment of import GST from the moment of importation until the filing of their GST return. This essentially gives an interest-free credit period (typically 1–2 months) for the GST paid on imports, aligning the timing more closely with input tax claims on local purchases.
Who is eligible for IGDS?
You may qualify for IGDS if your business meets these criteria:
- You are importing goods in the course or furtherance of your business
- You import goods belonging to an overseas principal for sale in Singapore or for re-export in your capacity as a GST agent (under section 33(2) or section 33A
- The scheme covers both dutiable and non-dutiable goods, including direct imports and items released from zero-GST/licensed warehouses into the local market.
- Your business must have a solid compliance record with Singapore Customs and Inland Revenue Authority of Singapore (IRAS).
Key benefits of IGDS
- Improved cash flow – By deferring import GST payment until your next GST return, you retain working capital longer, avoiding the upfront payment-claim gap that can strain operations.
- Simplified import compliance – Once approved, your import GST process is streamlined because the tax is settled as part of a familiar GST return rather than immediate import payment.
- Competitive advantage – Reduced financing cost from holding back GST payments can help businesses stay more competitive, especially import-heavy enterprises.
Applying for IGDS – What you need to do
To apply for the scheme, you must complete the following:
- Submit the application form GST F22 (duly completed and signed).
- Prepare the “GST Practices” (Section 1) and “Pre-filing Checklist” (Section 2) of the GST ASK review.
- Complete the “Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors”.
Because IGDS approval considers your past compliance record with Customs and IRAS, it’s wise to maintain clean import, GST, and tax records.
Common pitfalls & tips to maximise benefit
- Ensure your GST registration is active and compliant – registration triggers the ability to claim input tax and to apply for schemes like IGDS.
- Monitor timelines carefully: deferred payment is tied to your GST return filing – late filings or errors can invalidate deferment benefits or trigger penalties.
- If you use bonded/lower-GST warehouses (e.g., zero-GST/LIC warehouses) and release items into the local market, IGDS may still apply — ensure the warehouse releases are properly documented.
- Undertake an annual review of your GST practices (ASK) so you can self-correct any issues before IRAS or Customs triggers a problem.
- Consider partnering with a professional advisor (WLP) to ensure your internal controls, documentation, and reporting are in good shape.
Why talk to a specialist like WLP?
When navigating schemes such as IGDS, engaging a specialist can provide peace of mind and strategic insight. For example, WLP in Singapore offers end-to-end services in accounting, tax advisory and GST compliance.
We can help you:
- Assess whether IGDS is appropriate for your business model and import profile.
- Prepare and review your GST compliance framework (including pre-filing checklists, review of internal controls, documentation of import transactions).
- Ensure your GST returns accurately reflect the deferment and input tax claims, minimising risk of IRAS enquiries or penalties.
- Integrate IGDS within a broader cross-border tax, accounting and operational optimisation strategy — not just a one-off application.
If you are considering applying for IGDS or reviewing your GST import processes, consulting with a firm such as WLP could streamline the process and mitigate risk.
Conclusion
The Import GST Deferment Scheme (IGDS) presents a valuable opportunity for Singapore importers to improve cash flow and simplify GST administration. However, like all tax-schemes, its benefits depend on robust compliance, accurate reporting and good record-keeping. With the support of a specialist advisor like WLP, your business can make full use of the scheme while safeguarding against pitfalls.