01
Loose furniture is taxed differently
A sofa or a bed bought as goods carries its own rate and is not part of the works contract. Which is one more reason we quote furniture separately rather than folding it in.
Money · Explained
GST on interior design work in India
The rate, the SAC codes, why quotes disagree about it, and how to tell whether the number you were given includes it.
The short answer
The rate, and the reason for the confusion.
Turnkey interior work for a home is charged at 18%. You will find pages claiming 12%, and the confusion is real but explainable: 12% applies to certain construction-linked supplies, not to interior fit-out as a works contract. When one contract covers design, materials and installation, it is a composite supply and the whole thing takes the rate of the principal supply, 18%. Where a designer charges a pure consultancy fee with no execution, that is a professional service, also at 18%. Almost every path leads to the same number, which is why any quote showing you 12% deserves a question.
Codes
The SAC codes you will see.
| SAC | Covers | Rate |
|---|---|---|
| 995411 | Construction services of residential buildings | 18% |
| 995412 | Construction services of other residential buildings | 18% |
| 998391 | Specialty design services, including interior design | 18% |
| 9954 (works contract) | Composite supply of goods and services for immovable property | 18% |
Which code appears on your invoice depends on how the firm is structured, not on what you are buying. What should not vary is the rate. If two quotes for the same scope show different GST treatment, one of them is wrong, and it is worth knowing which before you sign either.
Reading it
Inclusive or exclusive changes everything.
A quote of ₹10 lakh exclusive of GST costs ₹11.8 lakh. A quote of ₹10 lakh inclusive costs ₹10 lakh. Placed side by side without reading the small print, the exclusive quote looks 15% cheaper and is not.
Our quotes state the base amount and GST as separate lines, and the calculators on this site apply 18% to the estimate for the same reason. If a quote you are comparing does not make this explicit, ask for it in writing before comparing anything else.
02
You cannot claim input credit on a home
Input tax credit on works contract services for immovable property is blocked for a residential customer. Any suggestion that you can recover it is wrong.
03
A GSTIN on the invoice is checkable
The number can be verified on the GST portal in under a minute. A firm that will not put one on the invoice is telling you something.
Questions
Asked and answered.
For residential interior fit-out, 18%. The 12% figure comes from construction-linked supplies under different conditions and is repeated widely without those conditions. If someone quotes 12%, ask which SAC code and which notification they are relying on.
Sometimes, and it shifts risk to you. Goods bought separately carry their own rates, but you then own delivery, damage, shortfall and warranty on those materials, and no contractor will warrant workmanship on material they did not supply.
Yes, at 18% as a professional service, if it is billed separately from execution.
Yes. GST is due on the advance at the time it is received, and it should appear on the receipt. An advance receipt with no tax line is not a proper document.
Keep reading
Related.
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