Gst On Interior Decoration Works Contract

On 20 october 2017 what is the gst tax of interior design contracts discussion forum you can also share your thoughts about this article. As per section 2 119 of cgst act works contract means a contract for building construction fabrication completion erection installation fitting out improvement modification repair maintenance renovation alteration or commissioning of any immovable property wherein transfer of property in goods whether as goods or in some other form is involved in the execution of such contract. The interior designing services can be classified under sac 998391 and same does not fall within the ambit of section 175 of the cgst act 2017.
gst on interior decoration works contract

Gst tax on interior decorator services.

Gst on interior decoration works contract. All works contracts are subjected to uniform rate of gst at 18 cgst 9 and sgst 9 for intra state and igst 18 for inter state transactions. Any one can answer on question posted by readers. In gst regime. Therefore you are eligible for itc with regards to interior designing work only and the cost of material should be reimbursed vide invoice.

The contract should have details about the clients expectations from the designing work and both parties should have terms of works and a collective agreement on the contract. Whether can we take itc against interior work designing materials because we shifted to our new office for our company. The details about gst rate changes for interior decorator service are being updated here. Though goods are supplied under a works contract such mixed contracts are now considered to be service contracts.

The terms can include pricing the duration of work and other works related to interior designing. Under gst laws the definition of works contract has been restricted to any work undertaken for an immovable property unlike the existing vat and service tax provisions where works contracts for movable properties were also considered. Igst will be charged on the interior decorator services. All such contracts are deemed to to be service contracts by treating transactions under such contracts as supply of services.

The supply of interior decorator services is an inter state supply since the location of supplier in kolkata and the place of supply in bihar are in two different states. There is no need to take separate registration in bihar unless you intend to open a branch of your kolkata office. On 02 july 2017 how does gst works for an interior decorator. The notification changes on exemptions for gst for sale of interior decorator service and other circulars related to gst for interior decorator service are u.

Works contract services when supplied for construction of an immovable property other than plant and machinery except where it is an input service for further supply of works contract service.