What is the HSN Code and GST Rate for Chair in India?

In the world of taxation and trade, proper classification of goods is crucial for compliance and operational efficiency. For businesses in the furniture industry, especially those dealing with chairs, the HSN (Harmonised System of Nomenclature) code serves as an essential tool. It simplifies taxation, ensures transparency, and aids in seamless trade practices. Understanding the HSN code for chairs is vital for accurate invoicing, GST calculations, and regulatory compliance. This article provides a comprehensive overview of the HSN code for chairs, highlights its significance, explains the applicable GST rates, and presents examples to help businesses optimise their processes. By mastering these details, businesses can achieve better organisation and maintain smooth operations in the competitive market.

What is the HSN code for chair?

HSN is a globally accepted system developed by the World Customs Organization (WCO) to classify goods systematically. HSN codes standardise trade practices, making it easier for businesses and governments to identify goods for taxation, invoicing, and cross-border trade.

For chairs, the HSN code falls under Chapter 94, which is dedicated to furniture and related parts. It categorises chairs based on their material and purpose, such as office chairs, dining chairs, recliners, and others.

For instance:

• Chairs made of wood for office use have a specific HSN code (9401.61)
• Metal chairs are classified under 9401.71
• Plastic chairs and specialised variants, such as recliners, have their distinct codes

Using the correct HSN code ensures accurate application of GST and seamless compliance with tax laws.

HSN code and GST rate for chair

The classification of chairs under HSN codes is essential for determining the GST rate applicable to each type. Below is a detailed table highlighting common types of chairs, their HSN codes, and the GST rates applied on each type:

Chair type	HSN code	GST rate
Wooden chairs for offices	9401.61	18%
Metal chairs	9401.71	18%
Plastic chairs	9401.80	18%
Recliner chairs	9401.20	28%
Folding chairs	9401.90	18%

Most chairs fall under an 18% GST rate, ensuring uniformity in taxation. However, high-end items like recliners attract a 28% GST rate, aligning with luxury tax norms. Understanding the GST rate and the correct HSN classification can simplify tax filings and invoicing, thereby optimising a business's financial management.

Importance of HSN codes for chair

The HSN code system offers significant benefits for businesses in the furniture industry, particularly those dealing with chairs. Here is why HSN codes are indispensable:

• Accurate taxation: Assigning the correct HSN code ensures the proper application of GST rates, avoiding discrepancies during tax filings
• Streamlined invoicing: HSN codes make invoicing straightforward by including a globally recognised classification for goods. This improves clarity and transparency in transactions
• Ease in trade: HSN codes simplify both domestic and international trade, as they are universally recognised and facilitate seamless product identification
• Input tax credit optimisation: Proper HSN classification allows businesses to claim input tax credits accurately, reducing overall tax liability
• Regulatory compliance: For businesses with turnover above prescribed limits, HSN codes are mandatory under GST law. Non-compliance can lead to penalties and operational disruptions

By integrating HSN codes into their systems, businesses can enhance operational efficiency, boost customer confidence, and ensure compliance with tax regulations.

Examples of chair HSN codes

To further simplify classification, here is a table providing examples of HSN codes for different types of chairs:

Chair description	HSN code	Remarks
Wooden office chairs	9401.61	Ideal for corporate and home offices
Metal chairs	9401.71	Durable options for public spaces
Plastic chairs	9401.80	Economical and lightweight seating
Recliner chairs	9401.20	Premium, high-end seating solutions
Healthcare chairs	9402.10	Specialised for medical applications
Educational chairs	9401.30	Commonly used in classrooms

Using these codes ensures accurate GST compliance and facilitates smooth transactions in both domestic and international markets.

Conclusion

For businesses in the chair manufacturing and retail industry, understanding and applying the correct HSN code is essential for more than just compliance—it is a step towards operational efficiency and transparency. Accurate classification helps simplify GST calculations, facilitates smooth invoicing, and enhances customer trust. Staying informed about these codes can significantly optimise business processes. Additionally, for those aiming to scale their furniture business or improve their operations, accessing a business loan can be a strategic move to achieve growth and meet financial goals. With the right tools and resources, businesses can stay competitive and pave the way for long-term success in the evolving market.