GST for Indian Architects and Interior Designers — What You Must Know in 2026
GST on architecture and interior design services confuses most Indian practitioners. Here's the complete 2026 guide — rates, registration, invoicing, ITC, and common mistakes.
Ask most Indian architects what GST rate applies to their services and you will get one of three answers: a confident but wrong number, a vague reference to 18%, or an honest admission that their accountant handles it and they are not sure.
This uncertainty is understandable — GST as it applies to architecture and interior design practice in India involves multiple rates, multiple scenarios, and specific rules that change depending on what exactly the service involves, who the client is, and how the contract is structured.
Getting GST wrong costs money — in penalties, in interest on unpaid tax, in lost input tax credit, and in the professional credibility damage of issuing incorrect invoices to clients. Getting it right is not complicated once the framework is understood.
This guide covers the complete GST picture for Indian architects and interior designers in 2026 — what rate applies, when to register, how to invoice correctly, what input tax credit you can claim, and the most common mistakes that generate notices from the GST department.
GST Registration — When It Becomes Mandatory
The Turnover Threshold
GST registration is mandatory for any business or professional whose aggregate annual turnover exceeds ₹20 lakh in a financial year. For professionals in special category states (the northeastern states, Uttarakhand, Himachal Pradesh, and Jammu & Kashmir), the threshold is ₹10 lakh.
What counts toward the ₹20 lakh threshold: All taxable supplies made during the financial year — your total fee income from architecture and interior design services, regardless of whether individual projects cross the threshold.
What does not count: Exempt supplies and income from the sale of goods on which GST is not applicable.
If your practice is growing and you expect to cross ₹20 lakh in annual fee income during the year, register proactively — do not wait until you have already crossed the threshold. Registration after crossing the threshold without having registered means retrospective GST liability on past invoices.
Voluntary Registration
Even if your turnover is below ₹20 lakh, voluntary GST registration may be advantageous if:
Your clients are GST-registered businesses who want to claim Input Tax Credit (ITC) on your services — they can only do this if you are registered and charging GST
You incur significant GST on your own business purchases (software, equipment, materials) and want to offset this against output tax
You want to project professional credibility — a GST number on your invoice signals a certain scale of practice
The Composition Scheme — Not Applicable
The GST Composition Scheme — a simplified flat-rate option for small businesses — is not available to service providers. It applies only to goods traders and certain restaurant businesses. Architects and interior designers who are services providers cannot opt for composition.
GST Rates on Architecture and Interior Design Services
Design and Consultancy Services
18% GST applies to architecture and interior design services — this covers:
Architectural design fees (concept, working drawings, approvals)
Interior design fees (space planning, material specification, design)
Project management fees
Site supervision fees
Consultancy and advisory services
This is the rate that applies to the vast majority of what Indian architecture and interior design practices bill their clients.
Works Contract — The Critical Distinction
When an architect or interior designer provides both design services and execution (procurement and supply of materials plus labour) under a single contract, the arrangement may be classified as a Works Contract rather than a pure service contract.
Works contracts have a different GST rate — 18% for commercial properties and 12% for residential properties where the consideration includes value of land. However, the detailed rules for what constitutes a works contract and how to split the service and goods components are complex.
The practical implication: Interior designers who supply materials and execute projects — rather than only designing and leaving execution to the client's contractor — need to carefully structure their contracts to correctly characterise the supply. An interior designer billing a fixed project cost that includes both design fees and material procurement is in works contract territory. This needs specific advice from a GST-registered accountant familiar with construction services.
Government Projects
Services provided to government entities, government authorities, and local bodies may qualify for exemptions or reduced rates under specific GST notifications. Architectural services for construction of certain government infrastructure projects have been subject to exemption notifications — check with your accountant for the current status of exemptions applicable to your specific project type.
How to Issue a Correct GST Invoice
Every invoice issued by a GST-registered architect or interior designer must contain the following:
Mandatory invoice fields:
Field | Requirement |
|---|---|
Invoice number | Sequential, unique, per financial year |
Invoice date | Date of issue |
Your GSTIN | 15-digit GST Identification Number |
Your legal name and address | As registered with GST |
Client's name and address | Full details |
Client's GSTIN | If client is registered — mandatory for B2B |
Description of services | Specific enough to identify the supply |
SAC code | Services Accounting Code for the service |
Taxable value | Fee amount before GST |
GST rate | 18% (or applicable rate) |
CGST amount | 9% of taxable value (intrastate) |
SGST amount | 9% of taxable value (intrastate) |
IGST amount | 18% of taxable value (interstate) |
Total invoice value | Taxable value + GST |
SAC Codes for Architecture and Interior Design
The SAC (Services Accounting Code) identifies the type of service for GST purposes. Relevant codes:
Service | SAC Code |
|---|---|
Architectural services | 998311 |
Engineering advisory services | 998312 |
Interior design services | 998311 |
Urban planning services | 998313 |
Project management services | 998315 |
CGST vs SGST vs IGST
Intrastate supply (you and client in same state): Charge CGST 9% + SGST 9% = 18% total
Interstate supply (you and client in different states): Charge IGST 18%
The state of supply for services is generally the location of the client — not where the work is performed. An architect in Mumbai providing services to a Bengaluru client charges IGST (interstate), not CGST + SGST.
Input Tax Credit — What You Can Claim
Input Tax Credit (ITC) allows you to offset the GST you pay on your business purchases against the GST you collect from clients — reducing your net GST liability.
What ITC You Can Claim
Eligible for ITC:
Office rent (if GST-registered landlord)
Software subscriptions (AutoCAD, Revit, Adobe, etc.) — 18% GST paid is claimable
Professional services purchased (structural consultant, MEP consultant fees) — if the supplier is GST-registered
Office equipment, computers, hardware — GST on business purchases
Business travel — airfare and hotel (with GST invoice)
Professional development courses and seminars
Not eligible for ITC:
Personal expenses
Motor vehicle expenses (except for businesses whose core activity is transport)
Food and beverages (except where provided to clients as part of a taxable supply)
How ITC Works in Practice
You collect GST from your clients — say ₹1,80,000 GST on ₹10,00,000 of fees in a quarter. You have paid GST on your own business purchases — say ₹18,000 on software, equipment, and professional services. Your net GST payable to the government is ₹1,80,000 minus ₹18,000 = ₹1,62,000.
The ITC claim requires that your suppliers have filed their GST returns and the credit appears in your GSTR-2B (the auto-generated ITC statement). If a supplier has not filed their return, you cannot claim ITC on that purchase — another reason to work with GST-compliant suppliers and subcontractors.
GST Return Filing — What to File and When
Regular Taxpayers (Turnover above ₹5 crore)
GSTR-1: Monthly (by 11th of following month) — details of outward supplies (your invoices)
GSTR-3B: Monthly (by 20th of following month) — summary return with GST payment
Small Taxpayers (Turnover below ₹5 crore)
GSTR-1: Quarterly (by 13th of month following quarter end) under QRMP scheme
GSTR-3B: Monthly — even under quarterly QRMP, tax payment is monthly
Annual return:
GSTR-9: Annual return by 31st December of the following financial year
Missing return filing deadlines attracts late fees — ₹50 per day for GSTR-1 and GSTR-3B, up to a maximum of 0.25% of turnover. File on time, even if the tax amount is nil for a period.
The Most Common GST Mistakes Indian Architects Make
1. Not Charging GST on Advance Payments
GST becomes payable at the earliest of: date of invoice, date of payment received, or date of completion of service — whichever comes first. If a client pays a 20% advance before any invoice is issued, GST is due on that advance in the month it is received. Many Indian architects issue invoices only at project milestones and miss GST on advances received.
2. Wrong Invoice Numbering
GST invoices must be sequentially numbered within a financial year. Gaps in invoice numbers, duplicate numbers, or restarting numbering mid-year are grounds for scrutiny. Maintain a single running invoice sequence.
3. Not Collecting GSTIN From Business Clients
When your client is a business, you must record their GSTIN on the invoice. If you issue a B2B invoice without the client's GSTIN, the client cannot claim ITC — and they will ask you to reissue the invoice, creating compliance complications for both parties. Always collect GSTIN from business clients at the time of engagement.
4. Not Reconciling GSTR-2B Before Claiming ITC
ITC claimed in GSTR-3B must match what appears in GSTR-2B. Claiming ITC that is not in GSTR-2B — because a supplier has not filed their return — leads to notices from the GST department. Reconcile monthly before filing.
5. Mixing Personal and Business Expenses
GST ITC is only available on business expenses. Purchasing a laptop for personal use and claiming ITC is a compliance risk. Maintain clear separation between personal and business purchases.
GST and Project Documentation
Every GST-compliant invoice, every ITC claim, every return filing is a document that needs to be retained for a minimum of 6 years from the end of the financial year — this is the statutory record-keeping requirement under the GST Act.
Wallxy keeps all project documents organised and accessible — so when a GST notice arrives asking for invoices and project records from three years ago, the documentation is in one place. See how Wallxy works →
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A Word on Professional Advice
This guide covers the framework of GST as it applies to Indian architecture and interior design practice. GST law is detailed and evolving — specific situations, project structures, and state-level variations may have implications not covered here.
Every Indian architecture practice should have a GST-registered chartered accountant or tax professional who understands construction and professional services. The cost of good tax advice is significantly lower than the cost of a GST notice, penalty, or retrospective liability.
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