GST and BCRS Deposit: What Singapore Businesses Need to Know Ahead of 2026
- Oct 8
- 3 min read
08 October 2025
Editor: ET
Learn how GST applies to Singapore’s new Beverage Container Return Scheme (BCRS) deposit starting 1 April 2026. Expede Tech explains invoicing, compliance, and preparation steps for businesses.
Singapore is preparing for a significant sustainability milestone with the implementation of the Beverage Container Return Scheme (BCRS) on 1 April 2026. For GST-registered businesses, this brings important considerations in pricing, invoicing, and tax compliance.
With insights from Expede Tech Pte Ltd, this article explains the GST treatment for BCRS deposits, how businesses should adjust their systems, and what corporate leaders must do now to stay compliant.
Further Reading: Top Tax Strategies for Singapore Entrepreneurs in 2025
What is the Beverage Container Return Scheme (BCRS)?
The BCRS is a nationwide initiative led by the National Environment Agency (NEA) to reduce waste and encourage recycling. Under this scheme, every regulated beverage sold in Singapore — pre-packaged drinks in plastic and metal containers ranging from 150ml to 3L — will carry a refundable deposit of 10 cents.
Consumers can reclaim this deposit when they return empty containers at designated return points. The scheme is operated by BCRS Ltd., licensed to oversee collection, recycling, and communication efforts across Singapore.
GST Treatment of BCRS Deposit
A key point for businesses is how the Goods and Services Tax (GST) applies to regulated beverages and the BCRS deposit:
The BCRS deposit is not subject to GST, as it is refundable.
GST is still applicable on the sale price of the beverage itself.
Example:
Bottled mineral water (inclusive of GST): $2.00
BCRS deposit: $0.10 (not subject to GST)
Total amount payable: $2.10
GST collected: $0.17 (9/109 * $2.00)
Businesses must update accounting and point-of-sale systems to ensure GST is applied only on the beverage, not the deposit.
Invoicing and Receipts with BCRS Deposit
Although the BCRS deposit does not fall under GST, businesses are encouraged to reflect it clearly on invoices for transparency. Options include:
Combined Invoice/Receipt – Show both beverage price and BCRS deposit in the same document, with the deposit labeled “Not Subject to GST.”
Separate Invoice/Receipt – Issue one for the beverage and another for the deposit.
No Invoice for Deposit – Only issue for the beverage, though less transparent for customers.
When including the BCRS deposit in a tax or simplified invoice, you must state:
Clear description of “BCRS Deposit”
Amount payable
Indication that it is not subject to GST
This separation ensures correct GST reporting and helps GST-registered customers claim input tax accurately.
Preparing Your Business for April 2026
The introduction of the BCRS requires early preparation. Businesses should:
Update systems: Point-of-sale and accounting systems must separate beverage prices from BCRS deposits.
Train staff: Ensure your team understands how to explain GST treatment and deposit refunds to customers.
Review contracts: Update supply agreements and invoicing practices to include BCRS deposit handling.
Plan for communications: By Dec 2025, BCRS Ltd. will issue guidelines on how deposits must be displayed to consumers.
With GST rates in Singapore set at 9% from 1 Jan 2024, compliance is more crucial than ever. Businesses that adapt early will not only stay compliant but also build trust with customers.
Why GST Compliance on BCRS Matters
The BCRS isn’t just an environmental initiative — it intersects directly with Singapore’s tax framework. For companies, getting GST treatment wrong could mean additional administrative costs or unnecessary disputes with IRAS.
By adopting clear invoicing practices and ensuring deposits are handled correctly, businesses safeguard themselves while contributing to Singapore’s zero-waste vision.
Expede Tech Pte Ltd emphasizes that corporate secretaries, finance managers, and directors should work together to align compliance systems with both GST regulations and the new BCRS requirements well ahead of 2026.
The BCRS deposit system, launching in Singapore on 1 April 2026, represents both an environmental and administrative shift for GST-registered businesses. While the deposit itself is not subject to GST, companies must ensure their pricing, invoicing, and reporting systems are ready.
Further Reading: Understanding Singapore’s Tax Residency Rules for Corporates
Businesses that act early — updating systems, training teams, and ensuring transparency in communication — will enjoy smoother compliance, stronger customer trust, and better alignment with Singapore’s sustainability goals.
For tailored advice and compliance support, corporate service providers like Expede Tech Pte Ltd are ready to guide Singapore businesses through these changes.
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