Architecture and interior design are 18% professional services, but because your work relates to a specific property, the place-of-supply rules key off where that property is — which matters the moment you take on a project in another state.
The rate and registration
Architectural and interior-design services are taxable at 18% (SAC 9983). Registration is mandatory once your fee income crosses the ₹20 lakh services threshold. As project sizes grow, most established practices are well past this and registered.
Property location decides place of supply
Services directly related to immovable property are generally taxed by reference to where the property is located. So designing a home in Mumbai for a Gujarat-based practice can be an inter-state supply, with place of supply being the property’s state. This determines IGST vs CGST+SGST — and it’s a common area of error for design firms with out-of-state projects.
Turnkey work and input credit
- Pure design/consultancy is a service; turnkey execution can bring works-contract treatment
- Reimbursements and materials must be handled correctly on invoices
- Registration lets you claim input credit on software, office and travel
- Developer/builder clients rely on your correct invoicing for their own compliance