News and Information

In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
(i) 7% to 8% with effect from 1 Jan 2023; and
(ii) 8% to 9% with effect from 1 Jan 2024.

Payment of goods and services from GST-registered businesses before 1 Jan 2023 will be subject to GST at 7%, and purchases on or after 1 Jan 2023 will be subject to GST at 8%. This includes SCCIOB that provides training programmes as a service.

There are scenarios where one or more of the following events straddle 1 Jan 2023:

• Issuance of invoice
• Payment for training programmes
• Commencement of training programmes

In these scenarios, special GST rules will apply. Here are some common scenarios for SCCIOB.

Scenario 1

• Full payment for training programme made before 1 Jan 2023
• Programme commenced on or after 1 Jan 2023

If full payment is received by SCCIOB for the enrolled training programme before 1 Jan 2023, GST will be chargeable at 7% irrespective of when the programme commences.

Scenario 2

• Invoice issued before 1 Jan 2023
• Full payment for training programme made on or after 1 Jan 2023
• Programme commenced on or after 1 Jan 2023

If you make full payment and commence your training programme on or after 1 Jan 2023, GST will be chargeable at 8% even if the invoice is issued before 1 Jan 2023. In this case, as the original invoice will reflect GST at 7%, SCCIOB will issue a new tax invoice that reflects GST at 8%. 

For other scenarios, please speak with your programme consultant who will be able to advise you on any payment issues.