An Indian interior design firm that designs spaces for clients abroad — remotely, through drawings, 3D visuals and specifications — declares those foreign invoices on a monthly EDF to its AD bank, due 30 days after the invoice month. The catch is that interior design is tied to a physical property: where that property sits can decide whether the job is an export at all for GST, and furniture you buy and ship is a goods transaction, not a service. Sort those two points out first and the EDF itself is routine.
Key takeaways
- Design fees billed to foreign clients for properties abroad are typically declared as service exports on the EDF.
- For GST, services related to immovable property generally follow the property's location — an Indian property for a foreign client may not be a zero-rated export. Confirm with your CA.
- Furniture or fixtures you procure and ship are goods, with their own export paperwork — keep them off the services EDF.
- Stage-based fees (concept, design development, documentation) are separate invoices and separate Part 2B rows.
- Mode of delivery is usually Internet; site visits abroad may need a different description — ask your bank.
First question: where is the property?
Interior design isn't like software, which floats free of any location. GST's place-of-supply rules give special treatment to services connected with immovable property, and the list of such services expressly includes work by interior decorators. The general effect is that the place of supply is where the property is located.
| Scenario | Property location | GST place of supply (general rule) | Likely treatment |
|---|---|---|---|
| Dubai client, villa in Dubai | Outside India | Outside India | Export of services, zero-rated if Section 2(6) conditions met |
| London client, flat in Mumbai | India | India | Not an export for GST — tax may apply; ask your CA |
| Singapore client, office in Singapore, you visit once | Outside India | Outside India | Export; discuss site-visit work with your bank |
| US hotel group, properties in US and India | Both | Split by property | Separate invoices per property help |
This is general information, not legal or tax advice. Place of supply is the single biggest risk in this industry, and the facts of each contract matter — your CA should review any project involving an Indian property or a mixed portfolio.
For FEMA, the EDF covers your service exports. If a job turns out not to be an export of services, ask your bank whether it belongs on the EDF at all before including it.
Design fees vs procurement
Many interior firms do two things: design, and procurement of furniture, lighting and finishes. These are very different under export rules.
- Design fees are services: concept, space planning, renders, working drawings, specifications, project coordination.
- Procurement of goods you buy in India and ship abroad is an export of goods, which runs through customs with a shipping bill. At EDI ports, the shipping bill itself serves as the EDF for goods. It doesn't belong in Part 2B.
- Procurement commission — where the client buys directly from suppliers and you earn a fee for sourcing — is a service, but it can raise intermediary questions under GST. See our piece on intermediary services and GST.
Invoice these separately. Mixing a design fee and a shipment of chairs on one invoice makes both the EDF and your GST return harder.
Fee stages and invoices
Interior projects usually bill in stages. Each stage invoice becomes one row on the EDF for the month it's raised.
| Stage | Typical share of fee | When invoiced |
|---|---|---|
| Retainer on signing | 10–20% | At contract |
| Concept design | 20–25% | On concept approval |
| Design development | 25–30% | On design freeze |
| Construction documents and specs | 20–25% | On issue of drawing set |
| Site coordination / snagging | Balance | On completion, or monthly |
Percentages vary by firm; they're shown here only to illustrate how many invoices a single project can generate over months.
Worked example: Studio Aranya
Studio Aranya, a proprietorship in Bengaluru led by an architect-turned-interior designer, is designing a 4-bedroom villa in Abu Dhabi and a café in Melbourne. February 2027 invoices:
| Invoice | Client (country) | Stage | Currency | Amount | Approx. INR |
|---|---|---|---|---|---|
| SA/26-27/044 | Villa owner (UAE) | Design development | AED | 38,000 | ₹8,66,000 |
| SA/26-27/045 | Café owner (Australia) | Concept design | AUD | 5,200 | ₹2,86,000 |
Both properties are outside India. One EDF, two rows, total about ₹11,52,000, due 30 March 2027. Mode of delivery: Internet (drawings and renders sent online). Each row describes the stage and project, carries the SAC its CA confirmed, and records the client's country.
In the same month, Studio Aranya also arranged a shipment of handmade light fittings from Jaipur to the Abu Dhabi villa. That shipment is a goods export with its own paperwork and doesn't appear on the services EDF.
Codes
SAC. Interior design falls within the specialty design services group. The facts we rely on list 998393 (other specialty design) as an example, but interior design may have its own more specific code — check with the SAC code finder and confirm with your CA.
Purpose code. The bank assigns it on each inward payment. Architectural, engineering and other technical services commonly use P1009; ask your bank what it applies to interior design fees and check each FIRA.
Realisation, site visits and long projects
Interior projects stall — clients travel, contractors slip, approvals drag. But each invoice has its own clock: services must be realised within 9 months from the invoice date (12 months for INR invoices). If a client holds a stage payment while construction catches up, ask your AD bank for an extension on a reasoned request rather than letting the window lapse. The realisation extension letter is a ready format.
Site visits abroad are part of many projects. If your team travels to supervise installation, discuss with your bank how it wants field 1.4 (mode of delivery) shown for that work. Billed travel costs are a separate GST and EDF question — show them as a distinct invoice line.
Frequently asked questions
Is interior design for a foreign client always an export of services?
Not always. For GST, services connected with immovable property — including interior decoration — generally take the property's location as the place of supply. A foreign client's property in India may not qualify as an export. Confirm with your CA.
Do I put furniture I ship abroad on the EDF for services?
No. Goods you buy and ship are a goods export with customs paperwork; at EDI ports the shipping bill serves as the EDF. Keep design fees and goods on separate invoices.
How do I declare stage-wise design fees?
Each stage invoice is a separate row in Part 2B of the EDF for the month it's raised. A long project will appear on several monthly EDFs over its life.
What mode of delivery should an interior designer select?
Internet, when drawings, renders and specifications are delivered online. For in-person site supervision abroad, ask your bank how it wants that work shown.
Which SAC code should interior design firms use?
Interior design sits within the specialty design services group. Use the code your CA confirms; 998393 (other specialty design) is one possibility, but a more specific code may apply.
Bottom line
For interior designers, check the property location and separate goods from services before you think about forms. Once that's settled, declare each stage invoice on the free EDF form generator every month and keep the 9-month clock in view.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.