Yes. GST at 9% is payable on a Gourmet Xchange purchase because the developer is GST-registered, and it is charged on each progressive payment as it falls due. Whether your company can claim it back depends on the entity, and the general guideline distinguishes operating from non-operating companies, subject to the rules set by IRAS. For the development itself, see the Gourmet Xchange home page.
How GST is charged on a building under construction
Under the progressive payment schedule used at Gourmet Xchange, the buyer pays 20% across the eight-week S&P period, then instalments as construction milestones are reached, 25% at TOP and 10% on completion. GST at 9% is added to each instalment. At the $2,080,000 entry price the total GST across the purchase is $187,200, of which $37,440 falls due with the first 20%. The payment scheme page shows every stage.
Banks do not usually finance GST, so it is paid in cash as it falls due, which is why the purchase calculator shows it as a separate line under each instalment.
Operating companies
An operating company is one that is GST-registered and already carrying on a taxable business — for example a food manufacturer that sells its products and charges GST on them. The general guideline is that such a company may claim the GST on its Gourmet Xchange purchase as input tax as it is incurred through construction, because the unit is acquired for its taxable business.
Non-operating companies
A non-operating company is one that is newly incorporated, or an investment-holding vehicle without taxable activity yet. The general guideline is that it would not usually begin claiming GST during construction. It may be able to start once the property reaches TOP and operating activity begins — for example when it leases the unit to a tenant as a taxable supply, or runs its own business from the premises.
Why the position cannot be settled from the outside
GST recovery depends on registration status, the nature of the company’s supplies and how the property will be used, and those facts differ from buyer to buyer. Everything above is a general guideline, subject to the rules set by IRAS. A tax adviser or IRAS can confirm the position for a specific entity before the option is exercised.
A worked example at the entry price
| Stage | Instalment | GST at 9% |
|---|---|---|
| S&P period (20%) | $416,000 | $37,440 |
| Construction stages (45%) | $936,000 | $84,240 |
| TOP (25%) | $520,000 | $46,800 |
| On completion (10%) | $208,000 | $18,720 |
| Total | $2,080,000 | $187,200 |
Figures at the $2,080,000 entry price. The instalments follow the payment scheme; the GST accompanies each one.
Follow-up questions
Is Buyer’s Stamp Duty charged on the GST?
No. Buyer’s Stamp Duty is assessed on the price before GST — $73,600 at the $2,080,000 entry price.
Does GST apply to a resale unit later?
GST applies on a later sale only if the seller is GST-registered and the sale is a taxable supply; a buyer of a resale unit should check the seller’s status.
GST across the unit range
The 9% rate applies at every price point, so the GST bill scales with the unit. As at October 2026, GST across a whole purchase comes to about $187,200 on a $2,080,000 Standard unit, $549,630 on a $6,107,000 Heritage Terrace unit, $559,800 on a $6,220,000 Deluxe unit and $792,990 on an $8,811,000 riverfront restaurant. In each case about a fifth of it falls due in the eight-week S&P period and the rest with the construction instalments, TOP and completion. For a company that can recover the GST, the main cost is the cash held between payment and refund; for one that cannot yet, it is a real cost of the purchase until operating activity begins.
Keeping the paperwork straight
Each instalment comes with a tax invoice from the developer, and those invoices support any input-tax claim. Buyers who expect to recover GST usually keep the S&P documents, the tax invoices and the evidence of the unit’s business use together from the start, so that the claim can be supported if IRAS asks for it.
GST and the other costs of buying
GST is one of several costs that sit alongside the purchase price. Buyer’s Stamp Duty, payable within 14 days of exercising the S&P, is assessed on the price before GST and is not itself subject to GST. Legal fees carry GST. Valuation and bank charges vary by lender. Once the building reaches TOP, property tax at 10% of the Annual Value begins; IRAS sets the Annual Value with reference to market rents. The stamp duty calculator shows Buyer’s Stamp Duty and GST together at any price, and the purchase calculator includes a property tax estimate.
Other costs alongside GST
Buyer’s Stamp Duty is assessed on the price before GST and is payable within 14 days of exercising the S&P. Legal fees, valuation and bank charges carry GST of their own. Property tax at 10% of Annual Value starts at TOP. See stamp duty and GST and the stamp duty calculator.
