Rajah & Tann Singapore successfully acted for Herbalife International Singapore Pte Ltd (Herbalife) in a matter that discusses whether GST should be levied on the discounted rate of goods sold by the business to its members or the open market value of the goods.
Ruling in favour of Herbalife, the Singapore High Court held that it should be the discounted rate of the goods. The Singapore High Court’s decision provides helpful guidance on the meaning of consideration under GST law and whether contractual undertaking of obligations could constitute non-monetary consideration for the purposes of section 17(3) of the Goods and Services Tax Act 1993. This landmark decision will impact all direct marketing companies and how their products supplied should be valued.
The matter was led by Partner, Vikna Rajah.
