> For the complete documentation index, see [llms.txt](https://preapproval-guide.imda.gov.sg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://preapproval-guide.imda.gov.sg/pre-approval-guide/stage-4-approval/understanding-qualifying-cost.md).
# Understanding Qualifying Cost
Learn what is qualifying cost
Annex 3 details the approved package prices and qualifying costs. This information helps you understand the grant amount your SME clients("grant applicant") may receive when they purchase your solutions.
{% hint style="info" %}
Qualifying Cost forms the basis for calculating the grant support amount within the prescribed grant caps that is determined during the pre-approval stage.
If the prevailing maximum grant support is 50%\* for Productivity Solution Grants, the grant applicant may get up to 50% support based on the qualifying cost set in the approved package that he/she wishes to purchase.
\*Note: This information is accurate as at 2025. Refer to [Productivity Solution Grant Overview](https://www.gobusiness.gov.sg/productivity-solutions-grant/) to understand the prevailing maximum grant support.
{% endhint %}
In this example above, if the grant applicant wants to purchase Package 2, the qualifying cost will be up to 50% of $6,360.
{% hint style="warning" %}
FAQ
Q: How is GST handled for packages under Productivity Solutions Grant?
A: Package prices are GST-exclusive. Grant applicants must pay GST according to IRAS guidelines.
{% endhint %}
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