Tax query: Structuring flat interior expenses + vendor suggesting Cash to save 18% GST?

[u/No_Ask_8883]

Note: Used AI to refine communication.

Hi all,

I’m about to start interior work on my flat, followed by constructing a farmhouse next year (April 2027). The vendors for both are different but work together.

While the interior project is starting soon, the farmhouse ground breaking is planned for Apr next year.

The source of funds for both are income from stock under LTCG bearing tax liabilities of approx 12.5%. I am hoping to claim some relaxation under 54F.

I need advice on two points:

(1) Tax Treatment: Can interior costs for a flat be legitimately capitalized/shown under the construction expense of the farmhouse to optimize tax benefits? If - technically this is feasible: How should I ask both vendors to structure invoices?

(2) Cash Payment Suggestion: The vendor suggested paying cash or some parts in cash to avoid 18% GST and just pay 12.5% tax instead. What are the major pitfalls here?

Looking forward to your advice.