GST for Interior Work: Residential and Commercial Scope

Whether you’re revamping your home or furnishing a new office, interior design is an essential service. From furniture to lighting to false ceilings, interior projects combine materials and expert design. But what about GST? This blog explains the gst for interior work, how it’s calculated, and what homeowners and businesses need to know.

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    Is GST Applicable on Interior Design Services?

    Yes. Interior design services are taxable under GST as a type of works contract service, which involves both labour and materials. Whether the service is for homes, offices, or showrooms, GST is applicable based on how the project is billed.

    GST on Interior Design Services: Rate Breakdown

    Type of Service SAC/HSN Code GST Rate
    Interior design consultancy 998391 18%
    Interior work (labour + materials) 9954 18%
    Pure labour contract (without material) 9987 18%
    Modular furniture supply 9403 18%

    Also Know About – Interior Design SAC Code

    GST on Home Interiors

    Home interior projects like modular kitchens, wardrobes, wall panelling, or ceiling work fall under works contract, making them taxable at 18% GST.

    • If materials and labour are billed together: 18%
    • If you buy materials separately and hire labour: GST is applied individually

    So, the gst on home interiors is the same as commercial interiors if done as a package.

    GST Rate for Interior Decoration (Commercial)

    Whether it’s a corporate office, retail outlet, hotel, or café:

    • Interior decoration gst rate is 18%
    • Includes design planning, material procurement, and installation
    • Businesses can claim Input Tax Credit (ITC) on GST paid
    GST Component Taxable? Rate
    Design service fee Yes 18%
    Materials supplied (laminates, lights, wood) Yes 18%
    Labour and fitting Yes 18%

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    How Billing Works in Interior Projects

    Your interior design invoice may include:

    • Design consultancy charges
    • Cost of materials (with HSN codes)
    • Labour or execution charges
    • GST at 18% on the total amount

    Composite contracts (materials + service bundled) are treated under a single GST rate—generally 18%.

    Input Tax Credit on Interior Work

    • Business clients can claim full ITC on interior services for office premises
    • Homeowners cannot claim ITC if work is for personal use

    To claim ITC:

    • Ensure vendor is GST registered
    • Ask for a proper invoice with SAC or HSN code and GST breakup

    Understanding the gst for interior work helps homeowners plan their budgets better and allows commercial clients to claim proper tax credits. Whether you’re designing a cozy home or a functional office, GST compliance starts with knowing the rate.

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