Discover GST rates on furniture in India, from wooden to luxury furniture. Learn about HSN codes, pricing impact, and the GST registration process for dealers.
GST on furniture in India has significantly impacted the sector, with rates varying between 18% and 28%, depending on the type and material. From wooden to metal and upholstered furniture, each category is subject to different GST rates. Most wooden, metal, and plastic furniture fall under the 18% GST slab, ensuring standardized taxation. However, luxury furniture made from glass or stone attracts 28% GST, reflecting its premium classification.
Furniture manufacturers and retailers must adhere to specific HSN codes, such as those for office or residential furniture. While GST streamlines tax processes, it also affects pricing, making furniture more expensive for consumers. This article explores the GST rates, HSN codes, and the broader impact on the furniture industry, helping businesses and consumers understand the financial implications.
GST Rates on Furniture
Below is the GST rate table for furniture items in 2025, helping consumers and businesses manage costs and compliance effectively:
| Furniture Type | GST Rate | HSN Code |
| Wooden furniture | 12% | 9403 |
| Metal or luxury furniture | 28% | 9403 |
| Plastic furniture | 18% | 9403 |
| Mattresses and bedding | 18% | 9404 |
Understanding these rates helps consumers and businesses manage costs and compliance effectively.
GST on Wooden Furniture
Wooden furniture attracts 12% GST under HSN Code 9403. Products included are tables, chairs, wardrobes, beds, and office furniture. These rates apply to furniture primarily made of wood, ensuring affordability for everyday use.
| Wooden Furniture Type | GST Rate | HSN Code |
| Tables, Chairs, and Wardrobes | 12% | 9403 |
| Office Desks and Shelves | 12% | 9403 |
| Wooden Beds | 12% | 9403 |
| Tableware and Kitchenware | 5% | 4419 |
Understanding these rates helps both consumers and businesses make informed decisions.
GST on Metal and Steel Furniture
Metal and steel furniture attract 18% GST under HSN Code 9403. Items include cabinets, lockers, office desks, and modular furniture. These products are commonly used in offices, institutions, and industrial setups.
| Metal Furniture Type | GST Rate | HSN Code |
| Steel Cabinets | 18% | 9403 |
| Office Lockers | 18% | 9403 |
| Modular Steel Furniture | 18% | 9403 |
| Industrial Shelves | 18% | 9403 |
This uniform rate simplifies compliance for manufacturers and consumers.
GST on Plastic and Synthetic Furniture
Plastic and synthetic furniture attract 18% GST under HSN Code 9403. Items include plastic chairs, tables, storage units, and stools. These are commonly used for homes, offices, and outdoor settings due to their affordability and durability.
| Plastic Furniture Type | HSN Code | GST Rate |
| Plastic Chairs | 9403 | 18% |
| Plastic Tables | 9403 | 18% |
| Storage Units | 9403 | 18% |
| Plastic Stools | 9403 | 18% |
This rate ensures standardized taxation across all synthetic furniture products.
Impact of GST on Furniture Businesses
The introduction of GST has significantly impacted the furniture industry by simplifying the tax structure and replacing multiple taxes like VAT, excise duty, and CST with a unified system. With GST rates ranging from 12% for wooden furniture to 28% for luxury items, businesses now face clearer tax compliance and pricing structures.
GST has streamlined logistics by removing state-level barriers, reducing transportation costs and delivery times, especially for raw materials like wood, metal, and plastic. Input Tax Credit (ITC) under GST allows manufacturers and retailers to claim credit for taxes paid on raw materials, enhancing profitability.
However, the higher GST rate of 28% on luxury and metal furniture has increased prices for premium products, potentially affecting demand in the high-end market. Overall, GST has created transparency and efficiency, benefitting organized players while challenging unorganized sectors to adapt to compliance requirements.
Benefits of New GST Structure on Furniture Industry
GST has brought several benefits to the furniture industry, fostering growth and transparency.
- Streamlining Taxation: By combining VAT, excise duty, and CST, GST made it easier for businesses to calculate and comply with taxes. Paperwork and administrative burdens have been reduced.
- Transparency and reduced fraud: GST filings are digital, reducing fraud and corruption across the supply chain. Every transaction is traceable, creating a fairer market.
- Input Tax Credit (ITC): Raw materials like wood, metal, and plastic can be claimed for ITC. Organized players have benefited from this benefit.
- Improved Logistics: With GST, state-level barriers have been eliminated, reducing transportation costs and improving delivery timelines.
- Organizational Benefit: GST encourages the unorganized sector to adopt compliant practices, resulting in greater competition and a level playing field.
GST has improved efficiency and transparency in the furniture industry.
GST Registration for Furniture Dealers
Below is the GST registration process for furniture dealers, outlining the key steps to obtain a GSTIN and ensure compliance:
- Visit the GST Portal: Go to www.gst.gov.in
- Create a New Account: Click on “Register Now” and choose “New Registration.”
- Enter Business Details: Fill in details like business name, PAN, email, and mobile number.
- Submit OTP Verification: Verify the email and mobile number with the OTP received.
- Fill Application Form: Complete Part-B with details like business address, bank account, and business activity.
- Upload Documents: Upload PAN, Aadhaar, address proof, and bank details.
- Submit and Verify: Submit the application and verify using DSC, E-Sign, or EVC.
- Receive GSTIN: Once approved, you’ll receive the GSTIN and Certificate of Registration.
This process ensures compliance for furniture dealers under GST laws.
Conclusion
In conclusion, the implementation of GST on furniture in India has brought both advantages and challenges. While it streamlines the tax system and ensures compliance, the varying GST rates, 18% to 28%, have led to higher prices, particularly for premium furniture.
Understanding the HSN codes and their respective GST rates helps businesses navigate the system efficiently, while consumers need to consider the price impact when making purchases. As the furniture industry adapts to these changes, it’s crucial for both manufacturers and buyers to stay informed about how GST affects their costs and choices.
FAQs About GST on Furniture Items
GST on furniture in India varies, with rates typically set at 18% or 28%, depending on the material and type of furniture.
Some types of furniture may be exempt from GST, but the general rates of 18% and 28% apply to most products, especially high-end furniture.
GST increases the cost of furniture. The rates of 18% to 28% contribute to higher prices, especially for premium and custom-made furniture.
HSN codes differentiate between furniture categories. For example, wooden furniture may fall under a specific code, while metal or upholstered furniture uses different codes.
The GST structure introduces challenges like compliance costs and price adjustments. It can impact pricing strategies and competition in the furniture market.
The government offers exemptions and reliefs on specific furniture categories to reduce the financial burden, alongside schemes to boost domestic furniture production.
Consumers may face higher prices for furniture due to GST, especially with premium items taxed at 28%, making affordability a concern for some buyers. What is the GST rate on furniture in India?
Are there any exemptions for certain types of furniture under GST?
How does GST affect the price of furniture?
What are the HSN codes for different types of furniture?
How does GST impact the furniture industry in India?
What government policies affect GST on furniture?
How do consumers feel the impact of GST on furniture pricing?
