GST Rates for Interior Design and Furniture Work in India

Interior projects rarely sit under one tax rate. A single turnkey contract can touch 12%, 18%, and 28% across rows. This guide breaks down the current 2026 GST rates for the categories interior designers actually invoice.

Quick reference table

| Category | HSN/SAC | GST Rate |
|----------|---------|----------|
| Interior design service (pure consultancy) | SAC 998391 | 18% |
| Architectural service | SAC 998322 | 18% |
| Works contract (residential interior, supply + fix) | SAC 9954 | 18% |
| Wooden furniture, modular kitchen carcass | HSN 9403 | 18% |
| Plywood, particle board, MDF | HSN 4410 / 4411 | 18% |
| Laminate sheets | HSN 4823 | 18% |
| Veneer | HSN 4408 | 18% |
| Paint, varnish | HSN 3208 / 3209 | 18% |
| Tiles (ceramic) | HSN 6907 | 18% |
| Marble, granite (slabs) | HSN 2515 / 2516 | 18% |
| Sanitary ware, faucets | HSN 7324 / 8481 | 18% |
| LED lights, fixtures | HSN 9405 | 12% |
| Switches, wires | HSN 8536 / 8544 | 18% |
| Curtains, upholstery fabric | HSN 6303 / 5407 | 12% |
| Carpets | HSN 5703 | 12% |
| Glass (toughened) | HSN 7005 / 7007 | 18% |
| Air conditioners | HSN 8415 | 28% |

How to assign the right rate

Three rules:

• Pure service = SAC + 18%. Design fee, supervision, consultation.
• Pure goods = HSN of the item. Most furniture and materials = 18%.
• Composite supply (supply + installation) = works contract = 18% under SAC 9954.

For example, a modular kitchen installation invoice with cabinets, hardware, granite top, sink, and chimney is a composite supply — even though the chimney alone might attract 28% as a standalone good. The dominant nature is works contract, so the entire composite attracts 18%.

What about that 28% on air conditioners?

If you supply and install a split AC as part of a turnkey contract, it can be argued as composite supply at 18%. If you sell the AC as a standalone good with no installation bundled, it remains 28%. Your accountant will pick the position based on your invoicing pattern.

When in doubt, split into two invoices: a goods invoice at the item rate, a service invoice at 18% for installation.

Worked example — a 3BHK turnkey

| Item | Value | Rate | Tax |
|------|-------|------|-----|
| Modular kitchen (composite) | 4,80,000 | 18% | 86,400 |
| Wardrobes (composite) | 5,60,000 | 18% | 1,00,800 |
| False ceiling | 1,20,000 | 18% | 21,600 |
| Painting | 90,000 | 18% | 16,200 |
| Electrical (works contract) | 1,40,000 | 18% | 25,200 |
| LED light fixtures (standalone supply) | 60,000 | 12% | 7,200 |
| Curtains (supply only) | 80,000 | 12% | 9,600 |
| Design fee | 1,50,000 | 18% | 27,000 |
| Total | 16,80,000 | — | 2,94,000 |

Notice that LED fixtures and curtains stay at 12% because they were billed as standalone goods, not as part of a works contract.

Common rate disputes

• "Modular kitchen is furniture, so 28%." No — modular kitchen with installation is composite works contract at 18%.
• "Marble is 28%." No — marble slabs are 18%.
• "My CA said 12% for the design fee." Pure design service is 18% (SAC 998391). 12% applies to certain notified services, not interior design consultancy in general.

Practical advice

Maintain an HSN/SAC + rate column in your item library. Every quotation auto-fills the correct rate per row. This is the single biggest defence against rate errors.

Intorza ships with a pre-loaded interior-specific HSN/SAC library so your first invoice is compliant on day one.

What to do next

Audit your last 5 invoices. Are HSN/SAC codes present per row? Are works-contract rates applied correctly? Two hours of cleanup today saves a notice tomorrow.

Read the broader playbook: GST invoice for interior designers in India.