GST or no GST?

[Robin Hoot 0]

Hi Guys,

 

When choosing your ID/Contractor, would you go for one with the GST or one without? Remembering that the sum is no small amount, GST can be a significant amount?

[AndreaLee 3]

Actually it only depends on how you look at the things. For Example, if you choose the company with GST , eventho the pricing would be slightly higher but you must remember this only means the company is big enough to take in alot of customers. and when they have a lot of customers means quite trustworthy. For those without GST, eventho the overall pricing would be cheaper the company would be a one man to three man show. Which can be good or bad too haha 

[Hanna 2]

I will go for without gst with hdb license contractor/ ID. 

No gst means company is smaller, not overwhelm with too many clients. Probably job can be complete earlier. 

..that’s my take. And that’s what i just did. 

[Robin Hoot 0]

If someone is HDB licensed contractor/ID but without GST registered, meaning they are either new or they don't reel in $1m in revenue? Correct me if I'm wrong hahaha

[snoozee 98]

GST or no GST registration shouldn't make any difference since you will end up paying the GST for the supplied building materials. it's just whether you are paying the GST directly or indirectly.

GST registered companies can claim GST back from IRAS for materials they buy and they pay IRAS the GST which they charge you.

Non-GST registered companies CANNOT claim GST from IRAS but the materials they buy will most likely be subjected to GST which will in turn be paid by you since you can't expect them to absorb the GST for these supplies right?

[ammonite 0]

On 4/13/2018 at 2:11 PM, snoozee said:

GST or no GST registration shouldn't make any difference since you will end up paying the GST for the supplied building materials. it's just whether you are paying the GST directly or indirectly.

GST registered companies can claim GST back from IRAS for materials they buy and they pay IRAS the GST which they charge you.

Non-GST registered companies CANNOT claim GST from IRAS but the materials they buy will most likely be subjected to GST which will in turn be paid by you since you can't expect them to absorb the GST for these supplies right?

You may not be paying the GST of the contractor and materials, but wouldn't you still end up paying the GST in the profit margin to the interior designer in this case then?