How Does the GST Rate Increase Impact My Pricing Approach in Singapore?

While GST-registered businesses must adjust their GST reporting to reflect the new rate after a hike, it doesn’t automatically translate to passing on additional GST costs to customers. It’s crucial to assess your customer base and their sensitivity to price changes, especially if they aren’t GST-registered and can’t recover the charged GST.

This evaluation will influence whether you choose to absorb the entire GST hike or pass it on partially to customers, impacting your bottom line accordingly.