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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I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions (FAQs)
- What is the GST for interior work in India?The GST rate is 18% whether the work involves only services or a mix of materials and labour.
- What is the GST on interior design for homes?18% GST applies to most home interior projects, whether for furniture, kitchen, or ceilings.
- Can I claim GST paid on interior work?Only if the work is for commercial/business premises. No ITC for personal home interiors.
- What is the interior decoration GST rate for offices or hotels?It is 18%, and businesses can claim Input Tax Credit on the amount paid.
- Are modular furniture and lighting part of interior work under GST?Yes. They are taxable at 18% when part of a design contract or billed separately.
