Bad debt
A bad debt situation occurs when money that is owed cannot be recovered. You can apply for bad debt relief from the Comptroller of GST for return of the output tax previously accounted for and paid by you.
On the other hand, if you have not paid your supplier within 12 months from the due date of payment and have claimed input tax, you are required to repay to the Comptroller the input tax that you have previously claimed. For more information, please refer to If I have claimed GST before paying my supplier.
How to claim bad debt relief
You need to complete the Self-review of Eligibility to Claim Bad Debt Relief (217KB) checklist. If you satisfy all the conditions in the self-review checklist, you can proceed to make a claim in Box 7 (input tax and refunds claimed) of your GST return. You need not submit the self-review checklist to IRAS but you should keep it as part of your records. You may be asked to furnish this checklist in the course of an audit.
Conditions to be met
You have supplied goods or services for a consideration in money and have accounted for and paid GST on the supply.
You have written off the whole or any part of the consideration for the supply as a bad debt in your accounts.
A period of 12 months beginning with the date of supply has elapsed or the debtor has become insolvent before the period of 12 months has elapsed.
You have taken reasonable steps to recover the debts
The value of the supply is equal to or less than its open market value;
If the supply involved goods, the ownership m