GST on construction work by interior design studio
This query is : Resolved
06 October 2025
Hi all,
I have a query regarding GST for a new project. We are interior design firm, we had a client who is selling a property. We got the project to handle both the villa construction and the interior/finishing work.
As per my understanding:
Interior and finishing services attract 18% GST.
The construction work is outsourced to a local contractor who is not registered under GST.
Could someone please clarify what GST will be applicable in this scenario? is it 12% or 18% for construction when we have taken the project combined of interiors + civil?
Thank you in advance for your guidance.
I have a query regarding GST for a new project. We are interior design firm, we had a client who is selling a property. We got the project to handle both the villa construction and the interior/finishing work.
As per my understanding:
Interior and finishing services attract 18% GST.
The construction work is outsourced to a local contractor who is not registered under GST.
Could someone please clarify what GST will be applicable in this scenario? is it 12% or 18% for construction when we have taken the project combined of interiors + civil?
Thank you in advance for your guidance.
06 October 2025
After September 2025, the GST structure in India has been overhauled and simplified to primarily two slabs for most goods and services: 5% and 18%, with a super-luxury/sin goods rate of 40% for select categories.
For your sector:
Construction Services: Standard construction work, including residential and commercial projects, now generally attracts 18% GST.
Interior Design/Finishing Services: These remain at 18% GST, with no reduction in the rate—interior services, design, and modular furniture continue in the 18% slab.
Most previous 12% slab entries (such as select construction materials) have been aligned down to 5%, but the core service supply slabs are now 5% or 18%. Unless a specific exemption or concession applies to your project category, charge 18% GST for both construction and interior work on new projects from September 22, 2025, onwards.
For your sector:
Construction Services: Standard construction work, including residential and commercial projects, now generally attracts 18% GST.
Interior Design/Finishing Services: These remain at 18% GST, with no reduction in the rate—interior services, design, and modular furniture continue in the 18% slab.
Most previous 12% slab entries (such as select construction materials) have been aligned down to 5%, but the core service supply slabs are now 5% or 18%. Unless a specific exemption or concession applies to your project category, charge 18% GST for both construction and interior work on new projects from September 22, 2025, onwards.
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