Frequently Asked Questions (FAQs) for Goods and Services Tax (GST) Rate Change

If I purchase a policy with premium fully paid on 20 Dec 2023 for coverage period from 20 Dec 2023 to 19 Dec 2024, what will be the applicable GST rate?

For full premium payment received before 1 Jan 2024, the GST rate applicable is 8%.

If I purchase a policy in 2023 with policy premiums paid via credit card instalment plan, am I entitled to 8% GST for instalments in 2024?

The credit card instalment is an arrangement between the credit card issuer and yourself, Chubb would have received the full amount from the bank. 

If the credit card transaction is effected before 31 Jan 2024 and it is related to bills and invoices that are issued before 1 Jan 2024, payment will be deemed to be received before 31 Dec 2023 and 8% GST will apply.

If I purchase a policy in 2023 with coverage period from 1 December 2023 to 30 November 2024 at premium of S$1,000, and arrange to pay the premium via an instalment plan with Chubb, am I entitled to 8% GST for instalments in 2024?

For instalment plan arranged with Chubb, any premium not received by Chubb before 31 Dec 2023 will subject to the revised applicable GST rate. The lower of:

1. part payment received on/after 1 January 2024; or
2. part services performed on/after 1 January 2024 will subject to 9% GST. 

Example as follows:

• Instalment 1 paid 1 Dec 2023 - $250
• Instalment 1 paid 1 Mar 2024 - $250
• Instalment 1 paid 1 Jun 2024 - $250
• Instalment 1 paid 1 Sep 2024 - $250

Part payment expected to be received on/after 1 January 2024: $750

Part services performed on/after 1 January 2024: $916.67 ($1,000 X 334/365)

The lower of the above, $750 will subject to 9% and the remaining value of $250 will subject to 8%.

I received a renewal notice and tax invoice with 8% GST. However, I missed the payment in 2023, am I still entitled to the 8% GST based on the renewal notice and tax invoice?

For payment not received by 31 Dec 2023, you will receive a credit note with the corresponding 8% GST and revised tax invoice for the change in GST rate based on your period of insurance – 9% for period of insurance in 2024 and 8% for period of insurance in 2023.

I have completed my premium payment (via my broker) in 2023. However, I still received a credit note and revised tax invoice with a . What should I do?

According to GST: Guide for the Insurance Industry issued by IRAS, premiums collected by the insurance intermediary (in this case, the broker) are considered as received by the Insurer. Therefore, the premium collected by the broker before 1 Jan 2024 should reflect 8% GST. 

You may wish to contact your broker for assistance and clarification.

If I purchase a policy in 2024, for period of coverage which commences in 2023, am I entitled to 8% GST for the period of insurance in 2023? 

No, all tax invoices issued in 2024 would reflect 9% GST.