GST on Architect Services | A Simple Guide

The GST on Architect Services applies to all the services provided by an architect. Thus, if you provide services like designing, planning, constructing and renovating any building or structure as a part of your profession, you must obtain GST.

 

Moreover, GST rates are linked to SAC codes. It is a system for classifying the services created by the service tax department in India. 

 

In this article, we will look at the GST rate and SAC codes applicable to architects in India.

 

GST Rate on Architect Services

 

The GST rate on architect services is 18%.

 

Thus, anyone who provides services related to architecture must obtain GST Registration if:

 

• The aggregate turnover in a financial year is above Rs. 20 Lacs.
• The aggregate turnover in a financial year is above Rs. 10 Lacs of a business located in the North Eastern States of India (Manipur, Arunachal Pradesh, Nagaland, Meghalaya, Assam, Tripura, Mizoram, Sikkim, Jammu Kashmir, Himachal Pradesh and Uttarakhand).

 

You can also apply for voluntary GST Registration if you want to and avail multiple benefits.

 

 

Steps to Apply for GST Registration of Architect Services

 

Step 1 - Choose a Trading Name

 

The first step in the process of registering a GST number is to choose a trading name and apply for architecture firm registration. After that, your firm name will be also used for all future dealings.

 

The trade name must be used for all business transactions and legal purposes. It must not be similar to any other trade names already registered with GST authorities.

 

Thus, to make sure that it is not infringing any other name, apply for trading name registration.

 

You can either register it as a Company Name or Trademark. 

 

If you are going for trademark registration, you must apply in Trademark Class 42 for architectural services.

 

Step 2 - Share Documents

 

The second step involves sharing documents.

 

Submitting the correct documents is very important in the GST registration process. The documents that you will need are:

 

• Electricity Bill of the Registered Business Office (Must not be older than 2 months)
• Rent Agreement and NOC (if the business office is rented) (The name and address must be the same as in Electricity Bill).
• Property Receipt or Sale Deed (if the business office is owned) (The name and address must be the same as in the Electricity Bill).

 

Sole Proprietorship

 

• Individual's PAN Card 
• Passport-size Photograph of the Owner
• Address Proof

 

Partnership or LLP

 

• Partner's PAN Card 
• Passport-size Photograph of Owners
• Partnership Deed / LLP Agreement
• Address Proof

 

Pvt Ltd Company or One Person Company

 

• Business PAN Card 
• Passport-size Photograph of Directors
• MoA and AoA 
• Certificate of Incorporation
• Address Proof

 

Make sure that the documents you submit are up to date and have no discrepancies. 

 

Also, they must be clear scan copies, otherwise, the authorities may raise queries and may delay the process.

 

Step 3 - Pay the Fees

 

There is no government fee for GST Registration in India. However, you will have to pay a professional fee if you are filling it with the help of an expert. 

 

At Starteazy, we charge a very reasonable amount of Rs.980 for GST Registration.

 

It includes free consultation, application filling, 24*7 support and 1 month of free GST Return Filing.

 

Step 4 - Application Filling

 

In the next step, our team of experts will verify all your documents and information and apply for GST Registration for Architectural Services.

 

The application form must be filled out and submitted on the official portal GST registration authority. 

 

It should contain all the necessary details such as your name, address, date of birth, contact number and email address.

 

Step 5 - Aadhaar Authentication

 

After filling out the application, you will receive a link for Aadhaar Authentication on your given mail id. 

 

It may take around 7-10 working days (excluding Saturday, Sunday and national holidays) after authentication to receive the registration certificate from the Government Authority.

 

Step 6 - Open a Business Bank Account

 

The last step is opening a business bank account. 

 

After the registration, you will have to submit your bank account details within 45 days of GST registration.

 

If you fail to submit the bank details within the time period, your GST will be blocked and suspended.

 

Benefits of GST Registration

 

• GST Eliminates the Cascading Effect of Tax

 

GST is a tax reform in India that eliminates the cascading effect of tax. 

 

 

The cascading effect of taxes refers to the practice of having different tax rates for different levels of income. 

 

It means that architects with higher incomes pay a higher percentage rate than those with lower incomes.

 

The government has introduced this new system to simplify the taxation process and reduce corruption.

 

As a result, all the architectural services are charged at 18% GST.

 

• Higher Threshold for Registration

 

The higher threshold limit for GST registration has been beneficial to businesses. 

 

It helps them avoid unnecessary expenses during the transition period and provides them with a time-bound solution to their concerns like tax compliance, tax returns, etc.

 

• Composition Scheme for Small Businesses

 

A composition scheme is a mechanism which allows small businesses to avail certain exemptions from various taxes levied by the government of India.

 

• Simple and Easy Online Procedure

 

The GST Registration online procedure is very simple and easy. You can get your GST certificate at your doorstep. 

 

All you have to do is fill out the form on your right and an expert will get in touch with you. We will apply for GST registration on your behalf and resolve the queries raised by the authority during the process.