GST on Interior Design — Works Contract Rules, SAC 998392 & 18%
GST on interior design services is 18% in India. Whether you are an independent interior designer, a design studio, or a turnkey interior contractor, this guide explains the applicable SAC code, tax breakdown, invoice format, and when works contract GST rules apply.
By Arjun Sharma· GST & Tax Compliance Specialist···Reviewed for GST accuracy
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GST Rate on Interior Design
Interior design and decoration services attract 18% GST under SAC code 998392. This covers space planning, furniture selection advisory, colour consultation, 3D design rendering, project management, and décor sourcing. The 18% rate applies to the professional fee component. If the designer also supplies and installs goods (furniture, flooring, fixtures), that portion becomes a works contract, which also attracts 18% for commercial spaces and 18% for residential (if new construction) or 18% for renovation. Purely advisory interior design — without supply of goods — is always 18% GST.
SAC Code for Interior Design
SAC Code
Service Description
GST Rate
998392
Interior design & decoration services
18%
995411
Works contract — new residential building
18%
995412
Works contract — commercial construction/renovation
18%
995419
Other construction & decoration works
18%
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An interior designer in Mumbai bills a residential client ₹80,000 for space planning and furniture advisory (professional fee only, no supply of goods). Intra-state supply (both in Maharashtra): CGST 9% = ₹7,200 + SGST 9% = ₹7,200. Total invoice: ₹94,400. SAC code 998392 must appear on the invoice. If the client is a registered business, they can claim ITC on this amount.
Works Contract vs Pure Design Fee
When an interior designer takes a turnkey project — supplying furniture, flooring, and also charging a design fee — the entire contract is treated as a works contract. Under GST, composite supply rules apply: the predominant supply determines the rate. For works contracts involving construction or substantial renovation, the rate is 18% on the entire value. Designers must clearly bifurcate the design fee and material supply on the invoice, or the entire amount will be treated as works contract at 18%.
ITC on Interior Design Expenses
Businesses can claim ITC on interior design services if used for business purposes. However, ITC is blocked for works contract services used for construction of an immovable property (Section 17(5)(c) of CGST Act). This means if a company hires an interior designer for office renovation involving civil works, the ITC on the works contract portion is not available. Pure advisory interior design fee (no construction involved) is eligible for ITC.
FAQs
What GST rate applies to interior design?
Interior design services attract 18% GST under SAC code 998392. Works contract projects (where designer also supplies and installs goods) also attract 18%.
Do interior designers need GST registration?
Yes, if annual revenue exceeds ₹20 lakh. Interior designers providing inter-state services need mandatory registration regardless of turnover.
Can a client claim ITC on interior design invoice?
Yes, if the service is for business use and does not involve construction of immovable property. Pure advisory design fees are ITC-eligible. Works contracts for building construction are not.
Is GST charged on imported interior design software?
Yes. Import of design software (like AutoCAD, SketchUp licences) attracts IGST at 18%. Import of services from foreign design platforms also attracts 18% IGST under reverse charge.
Why Businesses Stop Using Excel for GST Invoices
Manual GST calculation mistakes
One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.
Slow invoice creation
Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.
Formatting breaks on every device
Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.
No easy sharing or payment link
Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.
Incorrect tax type (IGST vs CGST+SGST)
Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.
Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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