GST on construction work by interior design studio

This query is : Resolved

Prapti (Querist)
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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.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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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.

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