IRAS has updated its GST guidance for construction services, adding a new educational video that explains key rules on billing, deposits, worker dormitories, reimbursements, and input tax claims, helping businesses maintain compliance in complex projects.
The Inland Revenue Authority of Singapore (IRAS) has updated its guidance on Goods and Services Tax (GST) for construction services, introducing a new video to clarify key rules for the industry on 18 March 2026.
The video covers general GST principles and explains when GST must be accounted for, including the timing of billing, progress payments, retention sums, and mobilization advances. It also addresses GST treatment for counter-supplies between parties, and the distinction between taxable deposits, non-taxable security deposits, and compensation payments.
Special attention is given to worker dormitories, clarifying GST rules on rental and provision of housing, and to the difference between reimbursements, which include GST, and disbursements, which do not. The guide further details the conditions businesses must meet to claim input tax on purchases and highlights common reporting errors to help maintain compliance.
The video provides a practical overview of the GST framework, distinguishing taxable from exempt supplies such as residential dormitory rentals versus additional service charges, and explaining proper handling of inter-company billings for accurate tax recovery. IRAS emphasises that while the video is intended to improve general understanding, it does not cover all possible tax issues.
This update aims to assist construction industry taxpayers in applying GST rules correctly and avoiding mistakes in complex projects.
