ArchiEase
GST on Architecture Services in India — SAC Code, Rate, and Invoicing
SAC Codes for Architecture and Related Services
| Service | SAC Code | GST Rate |
|---|---|---|
| Architectural advisory and design services | 998311 | 18% |
| Landscape architecture services | 998312 | 18% |
| Interior design services | 998392 | 18% |
| Urban planning services | 998313 | 18% |
| Project management services (construction) | 998316 | 18% |
What Is Taxable?
The following components of an architect's invoice are subject to GST at 18%:
- Professional fee (percentage-based or lump sum)
- Documentation and communication charges (10% of professional fee)
- Contractor bill verification charges (if assigned)
- Advisory consultancy charges
Reimbursable expenses passed through at actuals (such as authority fees paid on behalf of the client, or travel at actual cost) may not attract GST if structured correctly — but this requires careful documentation. Consult a CA for your specific situation.
What Must Go on an Architecture Tax Invoice
Every GST-registered architect's tax invoice must include:
- Architect's name and address
- GSTIN (GST Identification Number)
- Invoice number and date
- Client name, address, and GSTIN (if the client is GST registered)
- Description of service — e.g., "Architectural Design Services — Stage 2 Preliminary Design"
- SAC code — 998311
- Taxable value
- CGST and SGST (or IGST for inter-state)
- Total amount payable
- Place of supply
How GST Works with Stage-Wise Billing
Most architects raise invoices at each COA milestone. GST applies to each invoice. For example:
| Stage | Amount Due (excl. GST) | GST @ 18% | Total Invoice |
|---|---|---|---|
| Stage 2 — Preliminary Design (20% cumulative, less 10% paid) | ₹1,00,000 | ₹18,000 | ₹1,18,000 |
The taxable value on each invoice is the amount due for that stage (not the total project fee). Each invoice must have its own unique invoice number and date.
GST Registration Threshold
An architect must register for GST if their annual taxable turnover exceeds ₹20 lakh (₹10 lakh in certain special category states like Manipur, Mizoram, Nagaland, Tripura). Voluntary registration is permitted below this threshold and is generally advisable if the firm works with corporate or institutional clients who need to claim input tax credit.
Input Tax Credit for Clients
If the client is a GST-registered entity (a company, developer, etc.), they can claim input tax credit (ITC) on the GST paid on the architect's invoice — provided the service is used for their business purposes. This reduces their effective cost and is a common reason clients ask for a proper tax invoice rather than a proforma.