Most GST guidance focuses on getting registered. But the other direction — getting out of GST, or never having to charge it on certain supplies — matters just as much, and it's far less talked about. If your turnover has dropped, your business has changed, or you deal in exempt supplies, here's what you need to know. (If you're still on the registration question, see our GST registration guide first.)
When you can — or must — de-register
You can apply to cancel your GST registration when you're no longer liable to be registered — for example, if your taxable turnover has fallen below the threshold and you don't expect it to climb back, or if you've stopped making taxable supplies altogether (you've ceased trading, sold the business, or restructured). In some cases de-registration is compulsory — notably when you stop making taxable supplies, you're generally required to notify IRAS within a set window.
Voluntary de-registration and the two-year rule
If you registered voluntarily (below the $1M threshold), remember you generally had to stay registered for at least two years. Once past that, you can apply to cancel if you're no longer required to be registered — but weigh it carefully. If you import heavily or carry significant input tax, staying registered to keep claiming it back might still be the better call. De-registering to "simplify" can quietly cost you.
Exempt supplies vs zero-rated — they're not the same
This is where a lot of confusion lives. Two categories look similar but behave very differently:
- Exempt supplies — certain financial services, the sale and lease of residential property, and the supply of investment-grade precious metals. You don't charge GST on these, and you generally can't claim the input tax attributable to them.
- Zero-rated supplies — mainly exports of goods and international services. You charge GST at 0%, but you can still claim the related input tax. That's a big practical difference.
Mixing these up affects how much GST you can claim back and whether you're even required to register in the first place.
Where advice actually pays off
GST exemption and de-registration are areas where the right structuring decision early saves real money later. If you make a mix of taxable and exempt supplies, your input tax recovery isn't all-or-nothing — there are apportionment rules, and getting them right (or wrong) moves real numbers. And timing a de-registration around your asset position and contracts can be the difference between a clean exit and an unexpected bill.
Thinking about de-registering — or unsure about exempt supplies?
We'll work through the numbers and the timing before you commit. Your business, our business.
See our GST service →This article is general information, not legal or tax advice, and rules can change. ACRA, IRAS and MOM requirements are set by those authorities. For advice specific to your situation, talk to us.