SAC codes
SAC code for interior design: 998391
A design fee and a fit-out job are billed under different codes. Here is the code for the design work, the rate and where fit-out goes.
In short
Interior design fees are billed under SAC 998391, usually at 18% GST. Fit-out with materials is usually a works contract under 9954. In SimpleERP each service carries its own code, so both can sit on one invoice.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
SAC 998391 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998391: Specialty design services, including interior, fashion, industrial and other specialty design |
| 4-digit group | 9983 |
| Chapter 99 heading | Other professional, technical and business services |
| Usual GST rate | 18% under forward charge |
| Reverse charge | Forward charge for most suppliers. |
| Exemption | No common exemption for private clients, as notified. |
| Who typically bills it | Interior designers, design studios and fit-out firms billing a design fee |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a interior design invoice?
The usual SAC code for interior design is 998391: specialty design services, including interior, fashion, industrial and other specialty design. It sits in group 9983, other professional, technical and business services, under chapter 99, the chapter that holds every service code in the GST classification. Concept, layouts, drawings and design supervision billed as a fee usually take this code. Work that supplies materials and builds on site is a different supply.
What GST rate applies to interior design?
Interior design services are usually charged at 18% GST under forward charge. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Fit-out with materials, such as false ceilings and modular work, is usually a works contract under heading 9954
- Loose furniture sold separately is goods, for example HSN 9403, with its own rate
- Design consulting without drawings is sometimes billed under 998399; pick the code that matches the contract
A interior design invoice line in SimpleERP
Studio Aaranya bills Lakshmi Steel Furnitures a design fee of ₹1,20,000 for its new Peelamedu showroom. The line carries SAC 998391 at 18%, so the invoice shows CGST ₹10,800 and SGST ₹10,800, a total of ₹1,41,600.
- SAC 998391 sits on the line from the saved service, so nobody types it per invoice
- Place of supply picks CGST and SGST for a client in your state, or IGST for one in another
- The HSN/SAC summary groups every line by code, ready for the GSTR-1 HSN table
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
When is reverse charge or an exemption involved?
Interior design is under forward charge, as notified, so the studio charges GST on its invoice. There is no [reverse charge](/glossary/reverse-charge-mechanism) entry for design fees; check the GST portal if your client is a government body.
- Services of interior decorators for a property take the location of the property as place of supply
- Design for a client outside India, for a site outside India, follows the export rules; check
- A combined design and build contract may be one works contract; ask your CA how to split it
FAQ
Questions, answered
Is SAC mandatory on my interior design invoice?
Yes, on B2B invoices: four digits (9983) up to ₹5 crore turnover and six digits above it. If you bill design and fit-out together, each line needs its own code, 998391 for design and a 9954 code for the works.
Can I use 9983 instead of 998391?
Up to ₹5 crore turnover, 9983 meets the rule on B2B invoices. Above it, use 998391. The six-digit code also keeps your design fees apart from consulting under 998311 in the HSN summary.
Does reverse charge apply to interior design?
No. Interior design is under forward charge, as notified: the studio charges 18% GST. Reverse charge applies to notified services such as security services from non-corporate agencies or legal services by advocates.
What if my client is in another state?
For interior design tied to a property, the place of supply is where the property is, not where the client is registered. A Chennai client's showroom in Coimbatore is still CGST and SGST. In SimpleERP a ship-to address per site sets the place of supply.
Related
Keep reading
GST billing for interior designers
Stage invoices for design fees and fit-out works with SAC codes, client advances applied and the place of supply set by the site.
Read moreGST invoice for contractors
A free tax invoice format for works contracts and labour bills, with SAC 9954, the site address and place of supply.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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