Tax for florists in India

A florist is a business, so use presumptive Section 44AD (6% digital, 8% other), not 44ADA. The GST is binary: fresh cut flowers, buds and live plants are exempt (nil), while processed, dried, dyed and artificial flowers are taxed at 18%, with no 5% or 12% band. Event-decor is a taxable service at 18%, and making both exempt and taxable supplies restricts input credit (Rule 42 reversal).

Presumptive + GST + TDS at a glance

Presumptive taxation

Section:: Sec 44AD
Deemed profit rate:: 6% on digital receipts / 8% on other receipts
Classification:: business

GST treatment

Slab:: 18%
SAC:: HSN 0603 fresh cut flowers (NIL); processed/dried/dyed/artificial (18%); decor service (18%)
Composition eligible:: Yes
Reverse charge (RCM):: Not applicable

TDS exposure

Last reviewed: 29 May 2026

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A florist in India is a business, so presumptive taxation under Section 44AD applies, not Section 44ADA. The distinctive feature is GST: it is essentially binary. Fresh cut flowers, flower buds and live plants are exempt (nil-rated) as agricultural produce, while processed, dried, bleached, dyed or artificial flowers are taxed at 18%. There is no 5% or 12% middle band for flowers, so the question is simply whether what you sell is fresh or processed.

What business structure do florists use?

The common patterns for florists are: Sole proprietor, simplest, suits most flower shops and online sellers on 44AD, Partnership or LLP, for an event-decor florist sharing capital and crew, Private limited, for a larger flower-retail or decor business. The right structure depends on revenue, liability exposure, and personal circumstances, covered below.

Income tax: Section 44AD

A florist runs a business, so presumptive taxation is under Section 44AD: a deemed 8% of turnover, or 6% on digital receipts, with no detailed books or audit within the limits, up to Rs 2 crore (Rs 3 crore where cash is 5% or less). Section 44ADA does not apply. Event-decoration work, where you supply and arrange flowers for a wedding or function, is also a business activity within 44AD, though it can carry a separate GST treatment as a service.

A florist (a business) declares deemed profit of 6 or 8% under Section 44AD; the professional scheme does not apply. (Income-tax Act 1961 s.44AD (Income-tax Act 2025 s.58))

The binary GST: fresh is nil, processed is 18%

This is the point unique to florists. Fresh cut flowers, flower buds and live plants are exempt from GST (nil-rated) as agricultural produce under HSN 0603 and related entries. The moment flowers are processed, dried, bleached, dyed, or where you sell artificial flowers, the supply is taxed at 18%. There is no intermediate 5% or 12% rate for flowers. So a plain fresh bouquet is nil; a preserved or artificial arrangement is 18%; and a wedding-decor service that arranges flowers is a taxable service at 18%.

Fresh cut flowers and live plants are GST-exempt; processed, dried, dyed or artificial flowers are 18%; there is no 5% or 12% band for flowers. (CGST Act 2017 (rate and exemption notifications); HSN 0603 (fresh, exempt) vs processed/artificial (18%))

Mixed supplies and input credit

Because fresh flowers are exempt and processed or artificial ones are taxable, many florists make both exempt and taxable supplies. That restricts input credit: you cannot claim full input credit on costs shared between the exempt and taxable sides, and you reverse a proportionate share under Rule 42. Event-decor services are taxable at 18% with credit. Keep fresh-flower sales, processed or artificial sales, and decor services billed and recorded separately so the GST split and any credit reversal are clean.

Making both exempt (fresh) and taxable (processed/decor) supplies restricts input credit, with a proportionate reversal under Rule 42. (CGST Act 2017 Rule 42 (input-credit reversal for exempt supplies))

Allowable expenses

Category	Examples	Tax treatment
Stock (cost of sale)	Fresh flowers, foliage, oasis, wrapping, ribbons, vases	Cost of sale; input credit restricted because fresh-flower sales are exempt
Shop and storage	Rent, refrigeration, electricity, water	Deductible if keeping books; in deemed profit under 44AD
Delivery	Vehicle or courier for bouquet delivery, fuel	Deductible if keeping books; in deemed profit under 44AD
Event crew	Decorators and helpers for event work	Deductible if keeping books; pay over Rs 10,000/day by bank (40A(3))
Online and admin	Website, delivery-platform commission, phone, accountant	Deductible business expense

Vehicle and travel costs

A delivery vehicle is a business asset: under regular books claim depreciation plus running costs; under presumptive Section 44AD that is treated as included in the deemed profit. Refrigerated transport for flowers is also a depreciable asset on regular books.

Capital allowances and equipment

On regular books, refrigeration units, a delivery vehicle and shop fittings depreciate in the plant-and-machinery / motor-vehicle block (generally 15% WDV). Under Section 44AD no separate depreciation is claimed, but keep invoices so the written-down value is correct on any later sale.

Worked example

Priyanka — Kolkata, WB

florist with a shop and wedding-decor work (2026-27)

Annual turnover Rs 24 lakh: Rs 12 lakh fresh bouquets and plants, Rs 4 lakh preserved and artificial arrangements, Rs 8 lakh wedding-decor services. GST-registered.

For income tax, deemed profit under 44AD is 6% of Rs 24 lakh = Rs 1,44,000, below the Rs 4 lakh new-regime exemption, so income tax is nil and she files. For GST, the Rs 12 lakh of fresh flowers and plants is exempt (nil), the Rs 4 lakh of preserved and artificial arrangements is 18%, and the Rs 8 lakh of decor service is 18% with credit. Because she has exempt supplies, she reverses a proportionate share of input credit under Rule 42, and bills the three streams separately so the split is clean.

Common audit triggers for florists

Claiming full input credit while making exempt fresh-flower sales (Rule 42 reversal missed)
Charging or not charging GST inconsistently across fresh vs processed vs decor
Cash receipts over 5% of turnover while using the Rs 3 crore 44AD limit
Cash receipt of Rs 2 lakh or more from one client in a day (Section 269ST)
Event-decor TDS (194C) in 26AS or AIS not reconciled with income
No GST registration after crossing the relevant threshold

Frequently asked questions

Do I charge GST on a fresh-flower bouquet?+

No. Fresh cut flowers, flower buds and live plants are exempt from GST (nil-rated) as agricultural produce. You only charge GST when flowers are processed, dried, bleached or dyed, or when you sell artificial flowers, where the rate is 18%. There is no 5% or 12% rate for flowers, so it is essentially fresh-is-nil, processed-is-18%.

How is wedding or event flower decoration taxed?+

Event decoration, where you supply and arrange flowers as a service, is a taxable service at 18% with input credit. That is different from simply selling fresh flowers (exempt). If a job mixes selling fresh flowers with a decoration service, separate the supply of goods from the service so each is taxed correctly.

Why is my input credit restricted?+

Because you make both exempt supplies (fresh flowers) and taxable supplies (processed or artificial flowers and decor services). When you have exempt supplies, you cannot claim full input credit on shared costs; under Rule 42 you reverse a proportionate share attributable to the exempt sales. Keeping the streams separate makes that calculation cleaner.

Should a florist use 44AD or 44ADA?+

Section 44AD. A florist is a business, not a notified profession, so you declare a deemed 8% of turnover (6% on digital receipts), not the 50% under 44ADA. Even wedding-decor work is a business activity within 44AD for income tax, though it carries its own 18% GST treatment as a service.

Last reviewed: 29 May 2026