Is GST payable on the residential lease?
GST is not applicable on the sale and lease of residential properties.
However, non-residential properties are subject to GST. In cases where a property has residential and non-residential parts, only the non-residential portion is subject to GST.
When residential properties are furnished, GST should be charged on the supply of movable furniture and fittings. However, certain fixtures like built-in cabinets, wardrobes, kitchen and sanitary wares, and permanently attached wall-mounted air conditioners can be exempted from GST along with the property.
What residential properties are exempt from GST?
Buildings that have received URA approval for “residential use” are eligible for GST exemption. Some examples of URA-approved residential buildings include:
- Condominium flats
- Detached houses
- Semi-detached houses
- Terrace houses
- Townhouses
- Cluster housing
- Strata landed houses
- The upper floors of shophouse (if they are solely used for residential purposes)
- Homes for senior citizens
- Serviced apartments
- Student hostels
- Workers’ dormitories
- Welfare homes
