SMEs show more interest in GST registration, but applications may rise only later this year

SMALL and medium-sized enterprises (SMEs) are showing more interest in voluntary goods and services tax (GST) registration, accounting companies told The Business Times, though actual applications have yet to rise significantly. Companies may be reluctant due to compliance costs and concerns about raising their prices, said observers, but may find it necessary to do so as business expenses go up.

KPMG has seen more such interest from SMEs in the last four to six months, said Gan Hwee Leng, principal consultant of indirect tax at KPMG in Singapore.

Gan noted that the GST hike is taking place “amid increasing business costs”, which may motivate companies to seek means of defraying their higher expenses.