GST – Some insights
Goods and Services Tax (GST) is an indirect tax which has replaced many other indirect tax regimes in India. It is a multistage, comprehensive, destination-based value-added tax levied on the supply of goods and services. It is applicable for products manufactured in India as well as those imported into the country.
Currently, the GST council has brought over 1300 goods and 500 services under the GST umbrella, across four tax slabs – 5%, 12%, 18% and 28%. Click here https://www.theweek.in/news/biz-tech/2019/01/30/gst-missing-targets-inconsistent-performance.html to know more about GST Services are defined as anything other than goods, money and securities. They include any activity that converts money from one form, currency or denomination to another for which a separate consideration is charged.
Interior design/decoration is one such service that comes under the ambit of GST.
GST Rates on Interior Design Services
Interior decorators are any person/organization involved in the business of
- providing advice, consultancy or technical support
- providing services related to planning, design and beautification of spaces/landscapes
The GST rate on Interior design services is pegged at 18%. Interior decorators are also impacted by the individual rates of products like furniture and fixtures. Let us have a look at how such products are taxed under GST.
GST on household digital appliances and equipment like television, refrigerators, washing machines, etc. have been fixed at 28%
Furniture & Fixtures:
Furniture & cushions are taxed at 28%, while LED lighting and other lighting fixtures attract a GST of 12%. Insulated copper wires are taxed at 28%
Wood and Wooden Products:
Wooden products are taxed differently based on the type of wood. Firewood and charcoal are exempted from GST while wooden chips, briquettes, sawdust, etc. carry a 5% GST. Wooden Boxes and crates are charges taxes at 12%. Wood for kitchenware, bamboo wood used in wooden flooring, etc. entertain a tax of 18%. Sophisticated products such as fiber wood boards, wooden laminates and bricks, wooden frames, etc. are taxed the highest at 28%.
Paints, Varnish and Wallpaper:
These are some of the principal utilities in the interior design services. Paints & varnishes attract a tax of 28%, and the same rate applies for wall care putty, resin cement and other such wall care products. Wallpapers also fall under the 28% tax slab.
Bathroom fittings such as sinks, basins, pedestals, ceramic products and accessories, pipes attract a GST of 28%. Closets and other sanitaryware products and spares, made from any material including iron, steel, copper, aluminium, plastics, etc. are chargeable at 28%
GST Rate Changes
We saw the list of products that indirectly impact interior design services. There is a provision of input tax credits for individuals or organisations providing such services, and these can change the taxation norms for these businesses.
The above are the currently applicable rates for the different services and products. GST is subject to rate changes and amendments in response to changing industry trends and buy-in from consumers. Hence it is necessary to always revisit the rates at the time of transaction and invoice accordingly.