Latest GST on Furniture in India – Types, HSN Code, and Impact

GST plays a significant role in determining the pricing and affordability of furniture for consumers. For both buyers and sellers in the furniture industry, understanding how GST applies is essential, as it directly affects purchasing decisions and market dynamics. This guide outlines the latest GST rates and classification updates, in line with the GST Reform 2.0.
 

GST on furniture has now been simplified, with most products classified under a uniform tax rate. Earlier distinctions—especially higher slabs for specific materials—have largely been removed for ease of compliance and pricing clarity.

Note: The previous 28% GST slab for high-end furniture materials such as glass and stone has been removed. These items are now taxed at the standard 18% rate, contributing to a more consistent and predictable pricing structure. Businesses and consumers can use a GST calculator to estimate the revised tax amount on furniture materials and related purchases.

Under GST Reform 2.0, the tax structure for furniture has been made more uniform. Most furniture items are now taxed under a single slab, simplifying compliance for manufacturers and sellers. Earlier, certain materials like glass and stone attracted a higher GST rate, but this distinction has now been removed.

Below is a comparison of the earlier and revised GST rates across various furniture materials:

Bringing glass and stone furniture under the standard 18% rate aligns their pricing with other materials, resulting in more consistent costs for consumers and improved affordability.

Plastic furniture—widely chosen for its cost-effectiveness and long-lasting quality—is now uniformly taxed at an 18% GST rate. This change streamlines compliance and ensures transparency in pricing for both producers and buyers.

• Pricing clarity: GST rates have a direct impact on the final cost of furniture, affecting its affordability. A standardised rate across materials makes it easier for consumers to compare options and make informed decisions.
• Better budgeting: Understanding applicable GST rates allows buyers to plan their furniture purchases more effectively, with fewer surprises related to tax variations.
• Transparent transactions: Being aware of GST charges ensures that consumers receive accurate tax invoices, promoting fair pricing and reducing the risk of being overcharged.

Impact of GST rate on furniture manufacturers

• Easier compliance: A consistent GST rate simplifies record-keeping and ensures manufacturers can apply the correct HSN codes with ease, reducing administrative workload.
• Input Tax Credit benefits: Manufacturers can claim credit on GST paid for raw materials such as wood, metal, or plastic, helping to reduce total production costs.
• Stable and competitive pricing: With a streamlined tax structure, businesses can price their products more competitively and with greater consistency across markets.