Goods and Service Tax (GST) rate tariff in India is designed in 6 categories of goods and services. Four main GST rate slabs framed with Essential goods and services, Standard goods and services and luxury goods and services with 5%, 12%, 18% and 28% respectively. The essential goods and services attract nil rate of GST under Exempted Categories whereas Luxury goods and services attract additional cess than 28% GST. Further, GST rates are linked to SAC codes, a system for classification of services developed by the service tax department in India.
In this article, we look at the GST rate and SAC codes applicable for architects and engineers in India.
SAC Code for Architectural Services
The following is the SAC code for architectural services, urban and land planning and landscape architectural services.
SAC code 998321 — Architectural advisory services.
SAC code 998322 — Architectural services for residential building projects.
SAC code 998323 — Architectural services for non-residential building projects.
SAC code 998324 — Historical restoration architectural services.
SAC code 998325 — Urban planning services
SAC code 998326 — Rural land planning services.
SAC code 998327 — Project site master planning services.
SAC code 998328 — Landscape architectural services and advisory services
SAC Code for Engineering Services
SAC code 998331 — Engineering advisory services.
SAC code 998332 — Engineering services for building projects
SAC code 998333 — Engineering services for industrial and manufacturing projects.
SAC code 998334 — Engineering services for transportation projects.
SAC code 998335 — Engineering services for power projects.
SAC code 998336 — Engineering services for telecommunications and broadcasting projects.
SAC code 998337 — Engineering services for waste management projects (hazardous and non-hazardous), for water, sewerage and drainage projects.
SAC code 998338 — Engineering services for other projects.
SAC code 998339 — Project management services for construction projects.
GST Rate for Architects and Engineers
Under GST, 18% GST would be applicable on all architectural and engineering services rendered in India. Hence, architects and engineers would have to obtain GST registration and file GST returns.
GST rates are prescribed for some services and a GST exemption list for services has been published by the Government. Those services not mentioned in both of the lists are taxed at 18%. Architectural and engineering services are not mentioned in both of the list and hence taxed at 18% under GST.