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Industry Guide:

Bereavement Care Services Industry

 
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FREQUENTLY ASKED QUESTIONS

1. I am a BCSP that provides exempt and standard rated supplies in a package to a bereaved family. Can I claim the input tax I have incurred on some of the acquisitions which I made?

You are eligible to claim full input tax incurred which are attributable to making taxable supplies only. However, for residual input taxes which may be incurred for making both exempt and taxable supplies, you need to apply the apportionment method in claiming such input taxes. For further details on the apportionment rules, please refer to the GST Guide on Partial Exemption.

2. As an operator in the bereavement care services industry, do I need to know in depth other aspects of GST?

You may need to know how GST works and what the GST treatment on your supplies is. The following guides may be of assistance to you:-
(a) GST General Guide
(b) GST Guide On Registration
(c) GST Guide On Transportation; and
(d) GST Guide on Partial Exemption. 

3. What is the GST treatment on supplies made in relation to the exhumation and reburial of the remains of a dead human body?

Any supplies made in connection with the exhumation and reburial of the remains of a dead human body is treated as making exempt supplies. This includes those made at the request of the deceased’s family members or by any government administration.

4. What is the GST treatment on coffins supplied by a coffin maker to a BCSP or an undertaker?

A supply of coffin by the coffin maker is a standard rated supply. The coffin maker is eligible to claim input tax credit (ITC) on his inputs in making his taxable supplies if he is registered for GST.

5. If a funeral parlour service provider provides a coffin as part of his services to the bereaved family, is such provision of services a taxable supply?

The supply to the bereaved family is an exempt supply of services. However, any commission received by the funeral parlour service provider from the coffin maker is a taxable supply made by funeral parlour service provider and is subject to GST at a standard rate. 

6. What is the GST treatment on supply of tombstones, gravestones or headstones by a maker of such items to a grave builder?

The supply is a standard rated supply. In addition, the onward or subsequent supply by a grave builder to his client is a supply of services which includes the supply of tombstones, gravestones or headstones, is a taxable supply of services.

7. What is the GST treatment on the supply of a burial plot which is reserved by an individual where the supplier imposes a maintenance fee for the supply?

The supply for the burial plot is an exempt supply while the maintenance service is a standard rated supply. 

8. Is transportation services provided by a BCSP as a package for the family and friends of the deceased attending the funeral service exempted from GST?

It is an exempt supply by the BCSP. However, if such services are engaged by the family of the deceased for the ease of attending the funeral service, it is a taxable supply subject to GST at a standard rate.

9. Can a crematorium operator claim input tax credits on utilities used to carry out cremation of bodies?

Since the supply made by the crematorium is a standard rated supply, the GST incurred on the utilities are claimable.

10. Can a memorial park operator claim input tax credit if he makes both exempt and taxable supplies?

An undertaker, who makes both exempt and taxable supplies, can claim input tax credit that relate to taxable supplies. (For further information, please refer to the GST Guide on Partial Exemption). 

11. What is the GST treatment on cremation service?

Cremation is an exempt supply and is classified under GST (Exempt Supply) Order 2014 if it provided as part of a package. However, if the cremation service is supplied not as part of a package, the service is a standard rated supply.

12. Some legal documents are required for cremation. Examples are death certificate signed by the attending physician and Medical Examiner’s Permit for cremation issued by the local authority. What is the GST treatment on the acquisition of these documents?

The GST treatment on fees/charge paid to acquire these legal documents is not within scope of GST. 




 
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