ABC Private Limited (“ABC”) is a company incorporated, domiciled, controlled and managed in Singapore. It is principally engaged in the business of buying and selling coffee beans and tea leaves. ABC adopts a December financial year end. It is registered with the IRAS for GST purposes and has quarterly GST accounting periods.

ABC’s tax accountant highlighted the following transactions for GST reporting on 31 January 2021. These transactions were concluded with Singapore GST-registered businesses, unless otherwise stated. In addition, these transactions were concluded in Singapore dollars, unless otherwise stated.

On 15 September 2020, ABC sold coffee beans to a non-GST registered café. The café paid $6,840 for the coffee beans and $478.80 for GST.

On 9 October 2020, ABC bought 2,000 ordinary shares in XYZ Private Limited, a company incorporated, domiciled, controlled and managed in Singapore, and paid $2.50 per share.

On 20 October 2020, ABC bought coffee beans and tea leaves from a local supplier and paid $65,460, inclusive of GST. The tax accountant could not locate the relevant tax invoice.

On 2 November 2020, ABC bought three iPhones as prizes to be given to its top three performing salesmen. The company paid $1,649, inclusive of GST, for each iPhone.

On 4 November 2020, ABC sold tea leaves, which were valued at $35,416, to a retailer. The retailer was informed that a 20% discount will be applied as agreed.

On 16 November 2020, ABC gifted the iPhones bought on 2 November 2020 to its top three performing salesmen. They were happy to receive a brand-new iPhone each for free.

On 9 December 2020, ABC sold vouchers worth $500 to end consumers, who may use them to purchase coffee beans and tea leaves from the company in the future.

On 17 December 2020, an end consumer bought coffee beans and tea leaves, which were valued at $68, using a combination of vouchers bought previously and cash monies.

On 28 December 2020, ABC reimbursed its salesman $289, inclusive of GST, for his private car petrol utilised on official business meetings with distributors based on receipts submitted.

On 31 December 2020, ABC realised that vouchers worth $700 had expired after the tax accountant tracked the redemption of

vouchers sold in the course of business.

For your information, the tax director of ABC instructed that the company shall claim input GST wherever and whenever possible. This is regardless of whether the quantum of input GST is significant or not. He explained that he is acting in the best interests of the company, as the claiming of input GST will ease the company’s cash flow.

(a) For each transaction above, apply the concepts and principles of GST, indicate the type of supply, determine the value of supply and compute the amount of output GST chargeable or input GST claimable. Thereafter, compute the estimated net GST payable to or refundable from the IRAS for the relevant accounting period. Show all workings in your answer by adopting the table format below. Round all figures to be presented to the nearest two decimal places.

 

Transaction Number [X] [X] [X] Sub-total Type of Supply [X] [X] [X] Value of Supply ($) [X] [X] [X] Output GST chargeable ($) [X] [X] [X] [X] Input GST claimable ($) [X] [X] [X] [X]