--- title: "New GST for Interior Work 2026: 18% Rate on Interior Design" description: "New GST rate on interior work in 2026 is 18% on home and office interior design services. Busy ensures accurate GST billing on every sale and purchase." canonical: "https://busy.in/gst-rates/interior-work/" author: "Nishant" published: "2025-05-19T08:54:02.000Z" category: "GST Rates" --- - Interior design services, whether for homes or offices, are taxable under GST at a rate of 18%. - The new GST rate for interior design services in India remains at 18% for consultancy, materials, and labour. - Home interior projects like modular kitchens and ceiling work are taxed at 18% when materials and labour are billed together. - Commercial interior decoration, including design fees and materials, also has an 18% GST rate, allowing businesses to claim Input Tax Credit (ITC). - To claim ITC, businesses must ensure their vendor is GST registered and provide a proper invoice with SAC or HSN code. # New 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](https://busy.in/gst/) ? This blog explains the **gst for interior work**, how it’s calculated, and what homeowners and businesses need to know. ## 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. ## New GST Rate on Interior Design Services in India The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** for Interior Design Services taxpayers by business type (no compensation cess). ## New GST on Interior Design Services | Type of Service | SAC/HSN Code | New 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% | ## Old GST on Interior Design Services: Rate Breakdown ### (Old GST Rates – Applicable Until 21st September) | Type of Service | SAC/HSN Code | Old 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**](https://busy.in/sac-codes/) Live Demo Available Today ## Issue Debit Notes for Interior Work Delays or Defects Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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. ## New GST Rate for Interior Decoration (Commercial) | GST Component | Taxable? | New GST Rate | | --- | --- | --- | | Design service fee | Yes | 18% | | Materials supplied (laminates, lights, wood) | Yes | 18% | | Labour and fitting | Yes | 18% | ## Old 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](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) (ITC) on GST paid | GST Component | Taxable? | Old GST Rate | | --- | --- | --- | | Design service fee | Yes | 18% | | Materials supplied (laminates, lights, wood) | Yes | 18% | | Labour and fitting | Yes | 18% | **Get a Free Demo of –** [**Real Estate Accounting & Billing Software**](https://busy.in/accounting-software/real-estate/) ## 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](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) - 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## About the author **Nishant** 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 ### 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**](https://busy.in/gst/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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)