New GST for Interior Work: Residential and Commercial Scope
- 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.
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.
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% |
Type of Service
SAC/HSN Code
New GST Rate
Type of Service
SAC/HSN Code
New GST Rate
Type of Service
SAC/HSN Code
New GST Rate
Type of Service
SAC/HSN Code
New GST Rate
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% |
Type of Service
SAC/HSN Code
Old GST Rate
Type of Service
SAC/HSN Code
Old GST Rate
Type of Service
SAC/HSN Code
Old GST Rate
Type of Service
SAC/HSN Code
Old GST Rate
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.
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% |
GST Component
Taxable?
New GST Rate
GST Component
Taxable?
New GST Rate
GST Component
Taxable?
New GST Rate
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 (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% |
GST Component
Taxable?
Old GST Rate
GST Component
Taxable?
Old GST Rate
GST Component
Taxable?
Old GST Rate
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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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