Tax for gardeners and landscapers in India

Gardening and landscaping is a business, so use presumptive Section 44AD, not the 50 percent scheme under 44ADA. Landscaping and maintenance services are taxed at 18 percent GST, but selling live plants and seeds is exempt as agricultural produce, so keep the two streams separate. A business engaging you for a contract deducts 194C TDS (1 percent for individuals).

Presumptive + GST + TDS at a glance

Presumptive taxation

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

GST treatment

Slab:: 18%
SAC:: 9986 / 9954 landscaping services (18 percent); live plants exempt (HSN 0602)
Composition eligible:: Yes
Reverse charge (RCM):: Not applicable

TDS exposure

Last reviewed: 29 May 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

Gardening and landscaping in India is a business, so presumptive taxation under Section 44AD is the simplest fit, not Section 44ADA. The GST treatment has a useful split: landscaping and maintenance services are taxed at 18 percent, but the sale of live plants, saplings and seeds is exempt as agricultural produce, so keeping the two streams separate matters. A business that engages you for a landscaping contract deducts TDS under Section 194C.

What business structure do gardeners and landscapers use?

The common patterns for gardeners and landscapers are: Sole proprietor, simplest, suits most gardeners on presumptive 44AD, Partnership or LLP, for a landscaping firm sharing capital and crew, Private limited, for larger landscaping or nursery operations. The right structure depends on revenue, liability exposure, and personal circumstances, covered below.

Section 44AD for gardeners and landscapers

Gardening and landscaping is a business, so the presumptive scheme is Section 44AD: a deemed 8 percent of turnover, or 6 percent on digital receipts, with no detailed books or audit within the limits. Section 44ADA (50 percent) is for specified professionals and does not apply, even where you offer garden design. The 44AD ceiling is Rs 2 crore, or Rs 3 crore where cash receipts are 5 percent or less, so digital payment helps. The five-year lock-out under Section 44AD(4) applies if you opt out after opting in.

A landscaper (a business) declares deemed profit of 6 or 8 percent under Section 44AD; the 50 percent professional scheme does not apply. (Income-tax Act 1961 s.44AD (Income-tax Act 2025 s.58))

The GST split: services taxed, plants exempt

This is the point unique to your trade. Landscaping, garden design and maintenance are services taxed at 18 percent with input credit. But selling live plants, saplings, cut flowers and seeds is exempt as agricultural produce. So a job that is purely maintenance is fully taxable, while a job that includes supplying plants has an exempt component. Bill the plant supply separately from the service, and remember that exempt supplies restrict the input credit you can claim on shared costs.

Landscaping and maintenance services are taxed at 18 percent; the sale of live plants and seeds is GST-exempt as agricultural produce. (CGST Act 2017 (rate notifications); SAC 9986/9954 (services), HSN 0602 (live plants, exempt))

194C TDS on landscaping contracts

When a business, builder or housing society pays you for a landscaping contract, it deducts TDS under Section 194C at 1 percent (individual or HUF) or 2 percent (others), above Rs 30,000 single or Rs 1,00,000 aggregate in the year. Quote your PAN to keep the rate at 1 or 2 percent, and reconcile the credit in Form 26AS and AIS against your return.

A business paying a landscaping contractor deducts 1 or 2 percent TDS under Section 194C above the thresholds. (Income-tax Act 1961 s.194C (Income-tax Act 2025 s.393))

Allowable expenses

Category	Examples	Tax treatment
Tools and equipment	Mower, trimmer, blower, hand tools, pots, irrigation kit	Deductible; subsumed in deemed profit under 44AD
Plants and materials	Saplings, seeds, soil, manure, fertiliser, pavers	Cost of sale; plant supply is GST-exempt, so input credit on shared costs is restricted
Labour (crew wages)	Daily-wage gardeners on a job	Deductible if keeping books; watch cash-wage limit under 40A(3)
Work vehicle and fuel	Pickup or tempo for plants and equipment, fuel	Deductible if keeping books; in deemed profit under 44AD
Insurance and safety	Liability cover, accident cover, PPE	Deductible; health premium separately under 80D
GST and admin	Accountant, GST filing, invoicing tools, phone	Deductible (apportion personal phone use)

Vehicle and travel costs

Under regular books a work vehicle attracts depreciation (plant-and-machinery block, Section 32) plus running costs. Under presumptive Section 44AD depreciation is treated as already allowed within the deemed profit, and the written-down value still reduces for a future sale. Most small gardeners find 44AD simpler than actual-cost tracking.

Capital allowances and equipment

On regular books, mowers, trimmers, irrigation equipment and a work vehicle depreciate in the plant-and-machinery block (generally 15 percent 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

Lakshmi — Mysuru, KA

sole-proprietor landscaper (maintenance, design and plant supply) (2026-27)

Annual receipts Rs 24 lakh: Rs 18 lakh landscaping and maintenance services, Rs 6 lakh selling plants and saplings. Mostly digital. A housing society contract carried 194C TDS at 1 percent. GST-registered.

For income tax, deemed profit under 44AD is 6 percent of Rs 24 lakh = Rs 1,44,000, below the Rs 4 lakh new-regime exemption, so income tax is nil; she files and reclaims the 194C TDS. For GST, she charges 18 percent on the Rs 18 lakh of services with input credit, while the Rs 6 lakh of plant sales is exempt. Because she has exempt supplies, she reverses a proportionate share of input credit on shared costs under Rule 42, and bills services and plant supply separately so the split is clean.

Common audit triggers for gardeners and landscapers

Cash receipts over 5 percent of turnover while using the Rs 3 crore 44AD limit
Cash receipt of Rs 2 lakh or more from one party in a day (Section 269ST)
Claiming full input credit while making exempt plant sales (Rule 42 reversal)
Cash wages to crew over Rs 10,000 per person per day (Section 40A(3))
GST turnover not matching the 44AD turnover in the return
194C TDS credit in 26AS or AIS not reconciled with income reported

Frequently asked questions

Do I charge GST on the plants I supply?+

No. Live plants, saplings, cut flowers and seeds are exempt from GST as agricultural produce. Your landscaping, design and maintenance services are taxable at 18 percent. Bill the plant supply separately from the service so the exempt and taxable parts are clear in your returns.

Does selling exempt plants affect my input credit?+

Yes. When you make both taxable supplies (services) and exempt supplies (plants), you cannot claim full input credit on costs shared between them. Under Rule 42 you reverse a proportionate share of input credit attributable to the exempt plant sales. Keeping the two streams clearly separated makes this calculation cleaner.

Is a garden designer a professional for 44ADA?+

No. Even where you offer design, gardening and landscaping is treated as a business, so the presumptive scheme is Section 44AD (deemed 6 or 8 percent), not the 50 percent scheme under 44ADA. The design element does not turn the trade into a notified profession.

When do I register for GST?+

Once your taxable service turnover crosses Rs 20 lakh in a financial year (Rs 10 lakh in special-category states). Exempt plant sales do not count towards the registration threshold in the same way, but once you are registered you account for both the taxable services and the exempt supplies, and apply the Rule 42 input-credit reversal.

Last reviewed: 29 May 2026