GST on Architecture Services in India — SAC Codes, Rate, and Invoicing (2026)
SAC Codes for Architecture and Related Services
| Service | SAC Code | GST Rate |
|---|---|---|
| Architectural advisory services | 998321 | Confirm the applicable rate |
| Architectural services for residential building projects | 998322 | Confirm the applicable rate |
| Architectural services for non-residential building projects | 998323 | Confirm the applicable rate |
| Urban planning services | 998325 | Confirm the applicable rate |
| Landscape architectural and advisory services | 998328 | Confirm the applicable rate |
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"
- Applicable SAC code — selected for the actual service supplied
- 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.
GST on Advance Payments
When a client pays a retainer or advance before a formal stage milestone, GST is payable on receipt of the advance — not on the date of the invoice. The correct process:
- Issue a receipt voucher at the time of receiving the advance, showing the taxable value and GST amount
- Pay the GST in your GSTR-3B for that month
- When you raise the stage invoice, adjust the advance against it and reconcile the tax in GSTR-1
In practice, many small architecture firms skip the receipt voucher and include the retainer in the first stage invoice — consult a CA to ensure your treatment is correct for your firm's situation.
GST Return Filing for Architects
Return frequency, due dates, annual-return requirements, and composition eligibility can change. Confirm the current obligations in the GST portal and with your CA before relying on a filing calendar.
| Return | What it covers | Due date |
|---|---|---|
| GSTR-1 | Outward supply details | Check the GST portal for your filing frequency and due date |
| GSTR-3B | Summary return and tax payment | Check the GST portal for your filing frequency and due date |
| Annual return | Where applicable | Confirm current eligibility and due date |
Do not infer filing eligibility from firm headcount or an old turnover threshold; confirm it against the current GST rules.
E-Invoicing — When Does It Apply?
E-invoicing applies where aggregate annual turnover is ₹5 crore or more in any preceding financial year, measured on a PAN basis. Confirm whether an exemption applies before issuing an invoice.
- All B2B invoices must be uploaded to the IRP (Invoice Registration Portal) before or at the time of issue
- The IRP generates an IRN (Invoice Reference Number) and a QR code that must appear on the invoice
- B2C invoices (to individuals without GSTIN) are exempt from e-invoicing
Most small and mid-size architecture firms are below this threshold. If you are unsure, your CA can confirm based on your PAN-level aggregate turnover.