The Zero-GST Warehouse Scheme (ZGS) is primarily used for the storage of imported, non-dutiable goods into a customs-approved ZGS warehouse. Goods imported and stored into ZGS warehouse will enjoy suspension in import GST.

 

GST is only payable when the goods are released for sale in the local market. GST will be zero-rated when the goods are released from the ZGS warehouse for re-export.

 

The Major Exporter Scheme (MES) is administered by the Inland Revenue Authority of Singapore (IRAS). The MES is designed to alleviate the cash flow of companies that re-export a substantial amount of their imports.

 

Under normal rules, the businesses have to pay GST upfront on imports and subsequently obtain a refund from IRAS after the submission of their GST returns. This can create cash flow problems for businesses that export goods substantially as GST will not be collected from the zero-rated supplies to set-off their initial cash outflow on imports.

 

Businesses that are granted the MES are able to import non-dutiable goods with the suspension of GST.