Understanding GST for House Interior Design: 2025 Complete Guide

Quick Takeaways

1. GST on house interior design services in India ranges between 12% and 18%, depending on project type.
2. Material purchases like furniture, lighting, and fixtures attract a separate 28% GST slab.
3. Claiming Input Tax Credit (ITC) can reduce overall project costs by up to 10–15%.
4. Accurate GST invoicing is essential to avoid penalties under India’s GST Act.

Introduction: Why GST Matters in Interior Design

If you’re renovating or designing your home in India, understanding GST (Goods and Services Tax) can save you significant money and stress.

GST not only impacts the cost of your project but also influences how payments are structured between clients, designers, and contractors.

Before you start budgeting, try planning your interior layout in 3D to estimate material requirements and calculate GST more accurately.

According to the Indian Ministry of Finance GST Guidelines, misclassifying services or materials can lead to penalties ranging from ₹5,000 to ₹25,000.

What Is GST and How Does It Apply to Interior Design?

GST is an indirect tax levied on the supply of goods and services in India.

In interior design, GST applies to two major categories:

If your designer provides a turnkey contract (covering both services and materials), a composite GST rate may apply.

How GST Impacts Your Interior Design Budget

Understanding GST’s structure can make a huge difference when planning finances:

1. 18% GST on consultancy and design services
2. 12% GST on modular kitchens, wardrobes, and custom furniture if unbranded
3. 28% GST on luxury furniture, branded lighting, and imported fittings
4. Composite contracts often fall under 12% GST slab

To avoid overpaying, you can create a detailed floor plan online to estimate quantities and classify materials under the correct GST category.

GST Input Tax Credit (ITC) for Homeowners

One of the biggest benefits under India’s GST framework is the Input Tax Credit (ITC), which allows you to offset the GST paid on goods and services against your total liability.

How ITC Works

1. Designer issues an invoice showing GST separately.
2. Client pays the GST amount upfront.
3. If you’re GST-registered, you can claim credit in your tax filings.

Example:

If your modular kitchen cost is ₹5,00,000, GST = 12% → ₹60,000.

But if you sell your old furniture and pay GST on it, you can offset part of that ₹60,000 via ITC.

Key GST Slabs for Interior Design (2025 Update)

Compliance Tips for Designers & Homeowners

1. Always Demand GST-Compliant Invoices

1. The invoice must include GSTIN, HSN/SAC code, and GST breakup.

2. Classify Material & Services Separately

1. Avoid overpaying by segregating consultancy and material costs.

3. Use Tools to Plan Accurately

1. Tools like AI-powered home layout planners can help estimate the number of tiles, furniture units, and lights you’ll need.

4. Claim Input Tax Credit Properly

1. Consult a GST expert to maximize ITC benefits and avoid compliance issues.

Real-World Example: Budget Breakdown

Scenario: A 2BHK apartment, 1,000 sq. ft., modular kitchen + false ceiling + wardrobes.

Tip: With correct ITC planning, homeowners in metro cities can save ₹15,000–₹25,000.

FAQ — Understanding GST for House Interior Design

1. What is the GST rate on interior design services?

The standard GST rate on design consultancy is 18%.

2. How much GST applies to furniture purchases?

Unbranded modular furniture attracts 12%, while branded furniture can go up to 28%.

3. Are turnkey interior design contracts taxed differently?

Yes, turnkey contracts generally fall under the 12% GST composite rate.

4. Do homeowners get any GST benefits?

Yes, you can offset GST payments through Input Tax Credit (ITC) under certain conditions.

5. Are imported lights and fittings taxed differently?

Yes, imported fittings are usually under the 28% GST slab.

6. Can small interior projects avoid GST completely?

Projects below ₹20 lakh often don’t require GST registration but must confirm applicability with your contractor.

7. How do I know if my invoice is GST-compliant?

Look for GSTIN, HSN/SAC code, tax breakup, and the registered business name.

8. What happens if GST is misclassified?

Incorrect classification can lead to penalties and interest under GST laws.

References

1. GST Council Official Website
2. CBIC GST Guide for Interior Design
3. Statista: Indian Interior Design Spending 2025

Why This Guide Helps

1. For Homeowners → Plan your budget smarter, reduce GST liabilities
2. For Designers → Price your services accurately and stay compliant
3. For Contractors → Avoid penalties and improve invoice accuracy

Final Thoughts

Understanding GST for house interior design isn’t just about taxation — it’s about optimizing your budget, improving cash flow, and ensuring compliance.

With the right planning, you can save up to 15% of your total project cost.