GST Rate and SAC Code for Architects and Engineers

The GST rate for architects and engineers is 18%. Architects use SAC codes 998321 to 998329, and engineers use SAC codes 998331 to 998339.

This guide explains GST on architectural services in plain terms. It also shows where a GST Consultant and expert GST Advisory add value.

What Is the Rate of GST on Architectural Services?

The rate of GST on architectural services is 18%. Engineers charge the same rate for their professional work.

The tax split depends on the place of supply.

Type of Supply	CGST	SGST	IGST
Within one state	9%	9%	Nil
Between two states	Nil	Nil	18%

The total stays at 18% in both cases. So, check the place of supply before you issue each invoice.

A GST Tax Consultant can confirm the right split in minutes. Many firms in Thane also take GST Consultancy Services for this monthly check.

Which SAC Code Applies to GST on Architectural Services?

Architects use SAC codes 998321 to 998329, and engineers use 998331 to 998339. SAC stands for Services Accounting Code.

Common codes include:

• 998321: Architectural advisory services
• 998322: Architectural services for residential buildings
• 998323: Architectural services for non-residential buildings
• 998331: Engineering advisory services
• 998332: Engineering services for building projects

Firms with turnover up to Rs 5 crore report four-digit codes. Larger firms report six digits.

A wrong code can invite a notice on GST on architectural services. Hence, many firms rely on GST Consultancy Services to match each project with the right code.

Who Must Register for GST on Architectural Services?

Architects and engineers must register once yearly turnover crosses Rs 20 lakh. The limit is Rs 10 lakh in some special category states. A GST Tax Consultant can check which limit applies to you.

After registration, GST on architectural services applies to every taxable invoice. Registered professionals then file GSTR-1 for sales and GSTR-3B for tax payment.

Late filing brings fees and interest. Regular GST Advisory helps you avoid these costs.

Many firms also pick GST and Income Tax Services from one provider. Both filings use the same sales data.

How Does Input Tax Credit Work for GST on Architectural Services?

Input tax credit lets you reduce your tax by the GST you paid on business purchases. This lowers the cost of GST on architectural services for your practice.

Eligible expenses usually include:

• Office rent charged with GST
• Design software subscriptions
• Fees paid to other professionals

Personal expenses do not qualify. Some items also face blocked credit.

Match your purchase invoices with GSTR-2B before you claim any credit. A GST Consultant can run this check every month.

Sound credit planning is also a core part of GST Advisory. Firms that use GST and Income Tax Services also align credit claims with annual tax filings.

How Does GST for Construction Services Differ from GST on Architectural Services?

Design and consulting work attracts 18% GST, while GST for Construction Services depends on the project type. Architects who only design charge a flat 18%.

Service	Usual GST Rate
Architectural and engineering consultancy	18%
Under-construction residential apartments	5% without credit, 1% for affordable housing

Site work changes the picture. If your firm manages construction along with design, GST for Construction Services rules apply to that part.

A GST Tax Consultant can split mixed contracts correctly. Always review GST for Construction Services before you sign a mixed contract.

Clear billing keeps GST on architectural services separate from construction charges. Good GST Advisory supports this practice, and GST Consultancy Services can also review your billing format.

When Should You Hire a GST Consultant for GST on Architectural Services?

Hire a GST Consultant when your practice grows, your projects cross state lines, or you receive a notice.

Look for these signs:

• You work on projects in more than one state
• You receive a mismatch notice
• You supervise sites, which brings GST for Construction Services into play
• You need GST Advisory for a new project type
• You want one team for GST and Income Tax Services

Providers of GST Consultancy Services handle registration and returns. A local GST Tax Consultant also knows state-level practice for GST on architectural services.

Firms near Mumbai can contact a trusted tax consultant in Thane for filing support.

Stay connected with S. Panicker & Associates for regular tax, GST and finance updates. Follow us on Facebook and Twitter, or message us anytime on WhatsApp.

Related Blog: Top 10 Services Offered by CA Firms in Mumbai You Should Know About

What Are the Common Questions About GST on Architectural Services?

What is the SAC code for architects?

Architects use SAC codes 998321 to 998329 for GST on architectural services.

What is the GST rate for engineers?

Engineers charge 18% GST, the same as GST on architectural services.

Do small architects need GST registration?

Registration starts above Rs 20 lakh turnover. A GST Consultant can confirm your limit.

Can a firm claim credit on office rent?

Yes, if the rent carries GST and the office supports taxable work. A GST Tax Consultant can review each claim.

Why combine GST and Income Tax Services?

GST and Income Tax Services from one provider keep returns consistent. Many GST Consultancy Services offer both.