Introduction
Architects and interior designers provide professional consultancy and works contract services. The question arises: What are the GST obligations for architects and interior designers?
This guide explains the registration requirements, applicable GST rate, and compliance obligations.
Legal Framework: Section 22 of the CGST Act, 2017
Threshold Limit
For service providers, the threshold for GST registration is ₹20 lakh (₹10 lakh for special category states). Architecture, interior design, and civil engineering are treated as services under GST.
Inter-State Supply of Services
For inter-state supply of services, registration is mandatory.
GST on Architectural and Interior Design Services
Professional Consultancy
Design consultancy, space planning, and architectural drawings attract 18% GST under SAC 998391.
Works Contract Services
Where the architect or designer also supplies materials and executes the work, the service is treated as a works contract and attracts 18% GST.
Place of Supply
For services related to immovable property, the place of supply is the location of the property.
Registration Requirements
- Turnover Exceeds Threshold: Aggregate turnover exceeds ₹20 lakh.
- Inter-State Supply: Registration mandatory.
- Voluntary Registration: Can register voluntarily to claim ITC.
Return Filing Obligations
- GSTR-1: Report all outward supplies.
- GSTR-3B: Report tax liability and ITC.
- GSTR-9: Annual return, if applicable.
ITC on Business Expenses
Architects and interior designers can claim ITC on:
- Office rent
- Software subscriptions
- Professional fees
- Travel expenses
Best Practices
- Monitor Turnover: Track aggregate turnover regularly.
- File Returns on Time: Ensure timely filing.
- Maintain Records: Maintain invoices and payment records.
- Seek Professional Assistance: For complex compliance requirements.
Conclusion
Architects and interior designers must register for GST once turnover exceeds ₹20 lakh or when making inter-state supplies. The applicable GST rate is 18%. Proper invoicing and ITC reconciliation are essential.
Practising as an architect or interior designer? Anuj Desai & Associates provides expert guidance on GST compliance. Contact us today.
Contact us:
- Email: office@anujdesaiassociates.com
- Phone: 9619456656
- Website: https://anujdesaiassociates.com
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