# Calculating GST & Service Charges in SG 2024

**How the GST Rate Change Impacts You**

In Singapore, when you buy something, you almost always pay more than the stated price due to GST and service charge. These charges, at 8% and 10% of the item's retail price, respectively, are payable when you receive the bill at most restaurants and hotels.

As many of us know, commencing from 1 January 2024, Singapore will implement the second tranche of its Goods and Services Tax (GST) hike, transitioning from 8% to 9%. Calculating GST & Service Charges in SG 2024 can be dauting. Let's find out more in this post.

There are scenarios where one or more of the following events straddle 1 Jan 2024:

- Issuance of invoice
- Payment for the goods or services
- Receipt of goods or services

**Easy Way to Add GST and Service Charge to Your Bill**

No need for complicated calculators! Here’s a super simple way to figure out your bill with extra charges:

- GST (9%): Multiply your bill by 1.09.
- Service Charge (10%): Multiply your bill by 1.10.
- Both GST and Service Charge: Multiply your bill by 1.199.

**Here's the example:**

Its is easy to calculate Singaporean GST at 9% rate:

1.If $100 is the GST exclusive value

*$100 * 0.09 = $9 GST amount.*

2. To get the GST inclusive amount, multiply the GST exclusive value by 1.09.

*For a $100 GST exclusive value, $100 * 1.09 = $109 GST inclusive amount.*

3. To extract the GST part from a GST inclusive amount, divide the GST inclusive amount by 109 and multiply by 9.

*If $109 is the GST inclusive value, then ($109/109) * 9 = $9 GST value.*