GST on Furniture in India – Types, HSN code, and Impact

Discover the GST rates for various furniture materials: wood, metal, steel, and plastic. Understand HSN codes, impact on manufacturers, and why these rates matter for consumers.
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3 min
02 Aug 2024
GST has a crucial impact in the pricing and affordability of furniture for consumers. Understanding the GST implications is crucial for both buyers and sellers in the furniture market, as it influences purchase decisions and overall market trends.

Furniture GST rate in India

In India, the Goods and Services Tax (GST) on furniture varies based on the type of furniture and materials used. The standard GST rate for most furniture items is 18%, but some items may attract a different rate. For instance, specific types of handmade furniture and certain materials might fall under lower GST slabs.

GST rates for different types of furniture materials

MaterialGST rate
Wooden Furniture18%
Metal Furniture18%
Plastic Furniture18%
Glass Furniture28%
Stone Furniture28%


What are the GST and HSN codes for furniture?

The GST rates for furniture are categorised based on the Harmonised System of Nomenclature (HSN) codes. These codes help in classifying goods and determining the applicable GST rates. For example, wooden furniture falls under the HSN code 9403, with a GST rate of 18%. Metal furniture, under HSN code 9403, also attracts an 18% GST rate. It's essential for businesses to use the correct HSN codes to ensure compliance and accurate tax calculations. Using the correct codes helps in proper invoicing and reduces the risk of legal issues. 

GST on wooden furniture: A slab-wise breakdown

Price range (INR)GST rate
Up to 10,00012%
10,001 to 25,00018%
Above 25,00028%


GST rates for metal and steel furniture

  • Standard GST rate: 18%
  • HSN code: 9403
  • Applicable items: Includes furniture such as steel tables, chairs, cabinets, and other metal furnishings.
  • Special conditions: Some luxury metal furniture may attract a higher rate of 28%.
  • Impact: The GST rate on metal and steel furniture affects pricing and consumer choice, especially for durable goods.

GST on plastic furniture

  • Standard GST rate: 18%
  • HSN code: 9403
  • Applicable items: Includes plastic chairs, tables, and other furnishings.
  • Characteristics: Typically more affordable, making them popular among budget-conscious buyers.
  • Considerations: Pricing may vary based on the quality and design of the furniture.

Why are GST rates on furniture and materials important for a consumer?

  • Cost impact: GST rates directly affect the final price of furniture, influencing consumer affordability.
  • Budget planning: Knowing the GST rates helps consumers plan their purchases and manage budgets effectively.
  • Quality assessment: Consumers can gauge the quality and value of furniture based on the GST slab it falls under.
  • Tax compliance: Awareness of GST rates ensures consumers receive proper tax invoices, aiding in potential tax benefits.

Impact of GST rate on furniture manufacturers

  • Cost of production: Higher GST rates can increase production costs, affecting profitability.
  • Pricing strategies: Manufacturers may need to adjust pricing to remain competitive in the market.
  • Market demand: GST rates can influence consumer demand, impacting sales volume.
  • Compliance and documentation: Accurate use of HSN codes and GST compliance is crucial to avoid penalties. 

Manufacturers of wooden furniture

ManufacturerLocationVAT implicationsGST rate
ABC furnishingsMumbaiYes18%
XYZ woodworksBengaluruYes18%
Classic furnitureChennaiYes18%


Conclusion

Understanding the GST rates on furniture and materials is crucial for both consumers and manufacturers. For consumers, it aids in budget planning and purchasing decisions, while for manufacturers, it affects pricing strategies and market competitiveness. Additionally, the correct application of HSN codes and VAT implications play a significant role in compliance and tax calculations. Overall, awareness and compliance with GST regulations ensure smooth transactions and a fair market environment.

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Frequently asked questions

What is the GST rate on furniture?
The GST rate on furniture in India is generally 18%. This rate applies to most types of furniture, including wooden, metal, and plastic items. However, certain luxury furniture items, such as those made of glass or stone, may attract a higher GST rate of 28%. It's essential for consumers and businesses to be aware of these rates to ensure accurate pricing and compliance with tax regulations.

What type of furniture has a 28% GST rate?
Furniture items with a 28% GST rate in India typically include luxury or high-end pieces such as designer or imported furniture, items made from glass or stone, and certain premium fittings. This higher tax rate is applied to discourage non-essential spending and luxury consumption. Examples include marble-topped tables, luxury sofa sets, and decorative items that are not essential but cater to a more affluent market segment. The 28% GST rate reflects the classification of these items as luxury goods.

Is GST ITC available on furniture?
Yes, GST Input Tax Credit (ITC) is available on furniture purchases, provided they are used for business purposes. Businesses can claim ITC on the GST paid on furniture, as it is considered a business expense. However, ITC cannot be claimed if the furniture is used for personal purposes. Proper documentation and GST invoices are necessary to avail ITC. This benefit helps businesses reduce their overall tax liability by offsetting the tax paid on purchases against their output tax liability.

How much is the GST on plywood?
The GST on plywood in India is 18%. This rate applies to all types of plywood, including those used in construction, furniture, and other applications. Plywood is categorised under the HSN code 4412. The 18% GST rate impacts the overall cost of plywood products, making it important for consumers and businesses to account for this tax when budgeting for construction or manufacturing projects. This rate ensures a uniform tax structure across the country.

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