With this scheme, both an approved refiner as well as an approved consolidator will be entitled to benefits like import GST suspension (on eligible imports only) & additional benefits with respect to input tax. According to the ARCS, you’ll be approved either as an approved consolidator or an approved refiner.
This scheme intends to simplify cash flow & compliance of eligible consolidators/refiners of IPM (investment precious metals) with respect to their GST payment on raw materials which are purchased & imported. Also helps in relieving them from input tax they have incurred in relation to refining activities.
You will be considered as an approved refiner when you convert or process commodities into IPM/extract IPM from commodities/mint a coin of IPM and it gets an IRAS approval under this scheme.
Your (you being the approved refiner) GST charges will be suspended on imports under the following circumstances:
*As a section 33(2) agent you can supply/import commodities on behalf of a foreigner who has not registered for GST in Singapore.
*As a section 33A agent, when you import commodities that belong to a foreigner and later export them, you can make a GST claim for the GST charges you paid during the import process, in place of an overseas person provided you comply with specific criteria.
You don’t have to account for/collect GST in the event of you providing commodities to other ARCS persons for your business-related purposes. However, this is not applicable to a refining activity you render. You’re liable to report 7% GST on the refining activities you render in relation to commodities that are locally delivered.
When it comes to commodities being exported, a refining activity might be considered as zero-rated when the required export documents are maintained.
You will be allowed to claim the entire input tax you’ve incurred within your business operation. This will not be applicable to specific expenses that are disallowed based on Regulations 26 & 27.
According to the regulations 26 & 27 of the GST regulations (general), you cannot claim input tax on the expenses that are mentioned below:
You will be referred to as an approved consolidator when you aggregate or consolidate materials for delivery or supply to mentioned refiners which are meant for refining into investment precious metals. This also needs an approval from IRAS under this scheme.
No GST will be collected when you provide goods to another ARCS person:
You’re not liable to either account for or collect GST for commodities you supply to an approved refiner for activities related to your business.
You can make additional input tax claims versus what you’re entitled to according to the standard GST rules:
You will be allowed to claim the entire input tax you’ve incurred on import/purchase of precious metals. Any other kind of an expense will be subjected to an input tax recovery rate which is fixed for you.
You will be allowed to claim complete input tax you’ve incurred on expenses in relation to goods purchased with an intention to convert them into investment precious metals and on the initial sale of freshly refined investment precious metals.
Your remaining input tax will be subjected to a specific apportionment formula which is mentioned in the ARCS e-Tax guide.
|Sl no||Status||Entity ID||Approval date||Name of the approved business|
|1||Active (approved refiner)||200101382E||6 June 2013||Metalor Technologies Singapore Pte Ltd|
|2||Active (approved consolidator)||201224451E||7 April 2015||YLG Bullion Singapore Pte. Ltd.|
Here’s what you need to provide to make a claim under this scheme:
In addition to submitting the documents and applications mentioned earlier, you should also either take part in ACAP (the Assisted Compliance Assurance Programme) or a self-review needs to be done.