For businesses that import goods into Singapore, Goods and Services Tax (GST) is charged at the point of importation. That means paying import GST to Singapore Customs up front, then waiting to claim it back as input tax when the GST return is filed. For an import-heavy company, that timing gap ties up real cash every single month. The Import GST Deferment Scheme (IGDS) is the Inland Revenue Authority of Singapore’s (IRAS) answer to that problem. This 2026 guide explains what IGDS is, how it works, who qualifies and how to apply.
It is written for business owners, finance managers and directors of trading, manufacturing and distribution companies. If you regularly import goods and find your working capital squeezed by import GST, IGDS may be one of the most useful cash-flow tools available to you.
What is the Import GST Deferment Scheme?
Under the normal rules, a GST-registered importer pays import GST at the point of import and only recovers it later through its GST F5 return. IGDS changes the timing. Instead of paying import GST when the goods clear Customs, an approved business defers the import GST and accounts for it in its GST return for the relevant period, claiming it as input tax in the very same return.
The practical effect is that, for most importers, the import GST becomes a wash within a single GST return: it is declared as output-side deferred import GST and simultaneously claimed as input tax, so there is little or no cash actually leaving the business. IGDS effectively gives importers a credit period of one to two months on import GST, similar to the credit terms they already enjoy on local purchases.
Why the scheme matters for cash flow
Consider a distributor that imports S$5 million of goods a quarter. At the prevailing 9% GST rate, that is S$450,000 of import GST paid up front every quarter under the normal rules, only recovered weeks later when the GST return is filed and any refund is processed. For a business running on tight margins, that is a very large sum to have parked with the tax authority at any given time.
With IGDS, that S$450,000 is deferred and offset within the same return. The cash stays in the business, funding stock, payroll and growth instead of sitting as a receivable from IRAS. For companies that are habitually in a net GST refund position because they export a large share of what they import, the relief is even more valuable. Businesses in that position should also look at the Major Exporter Scheme (MES), which suspends import GST entirely rather than merely deferring it.
Who can apply for IGDS?
IGDS is not automatic. It is granted to businesses that meet IRAS’s conditions and maintain a clean compliance record. Broadly, to qualify your business must:
Be GST-registered and established
Your business must be GST-registered, and in practice IRAS expects a track record, generally at least three years of GST registration, before approving IGDS, although newer businesses with strong controls may still be considered.
Be financially solvent and active
The business must be a going concern, financially solvent and genuinely carrying on business. IGDS is a facility for real, operating importers, not dormant or shell entities.
Have a good compliance record
You must have a good compliance history with both IRAS and Singapore Customs, filing GST returns and paying tax on time, and keeping proper records. Past filing lapses or outstanding tax will count against an application.
Be importing in the course of business
The goods must be imported in the course or furtherance of your business. IGDS also covers goods imported on behalf of an overseas principal where you act as its GST agent, and re-exports handled in the same way.
How IGDS works in practice
Once approved, the mechanics are straightforward but must be followed carefully:
First, import GST on your shipments is deferred rather than paid to Customs at importation, provided the correct IGDS declaration is used when the goods are cleared. Second, the deferred import GST for the period is declared in your GST return, and third, it is claimed back as input tax in the same return (subject to the normal input-tax recovery rules). IRAS collects the deferred import GST through GIRO, so an active GIRO arrangement for GST is a practical requirement of the scheme.
Because the deferred GST and the input-tax claim appear in the same return, an ordinary importer who is entitled to full input-tax recovery sees the two entries cancel out. The discipline lies in declaring the deferred import GST accurately: under-declaring it is a compliance failure even where the net cash effect is nil.
IGDS compared with other GST schemes
IGDS is one of several IRAS schemes that ease the GST burden on cross-border trade, and it is worth understanding how it differs from the alternatives:
IGDS defers import GST to the GST-return date. MES suspends import GST altogether, so there is nothing to pay or defer at import, which suits businesses whose supplies are largely zero-rated exports. Goods moved through a Free Trade Zone are not treated as imported until they leave the zone for local consumption, deferring the GST point in a different way. And exporters should separately ensure they are correctly applying GST zero-rating on their outbound supplies. Many trading companies use a combination of these tools, and the right mix depends on your import-to-export ratio and your compliance capacity.
Applying for IGDS
Applications are made to IRAS, and in most cases the business must first satisfy the requirements of the Assisted Self-help Kit (ASK) or the more rigorous Assisted Compliance Assurance Programme (ACAP), which demonstrate that the company has sound GST controls in place. This is IRAS’s way of ensuring that a business trusted with deferring import GST has the internal discipline to account for it correctly. Full conditions and the current application forms are set out by IRAS and administered together with Singapore Customs.
Approval is typically valid for a fixed period and renewable, subject to continued compliance. IRAS can revoke IGDS status if the business falls into arrears, files late, or ceases to meet the eligibility conditions, so ongoing good housekeeping matters as much as the initial application.
Frequently asked questions
Does IGDS reduce the amount of GST I pay?
No. IGDS is a timing benefit, not a reduction. The same import GST is accounted for, just later and in the same return where you claim it back. The saving is in cash flow, not in the amount of tax.
Can a newly GST-registered business apply?
IRAS generally looks for an established compliance track record. A very new registrant may be asked to wait, though strong internal GST controls and an ACAP certification can help the case.
Do I still need to keep import permits and records?
Yes. Proper import documentation and records must be retained. IGDS relies on accurate declarations, and IRAS may review them, so record-keeping is essential.
Is IGDS better than the Major Exporter Scheme?
It depends on your profile. If you export most of what you import, MES (full suspension) is usually stronger. If you sell largely into the local market, IGDS deferral is often the more appropriate fit.
How we can help
Choosing and qualifying for the right GST scheme is as much about your compliance systems as your trade flows. Raffles Corporate Services helps import-heavy companies assess whether IGDS, MES or another arrangement fits, prepare for the ASK or ACAP review, and keep GST reporting clean so that scheme status is not put at risk. If you would like a review of your GST position, we would be glad to assist.
This article is for general information only and does not constitute tax advice. GST scheme conditions change; confirm the current requirements with IRAS or a qualified adviser before acting.
— The Editorial Team, Raffles Corporate Services