GST Rate on Wood and Wooden Furniture

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Furniture isn’t just about style and comfort. It’s also about numbers. With the introduction of Goods and Services Tax (GST), picking out that perfect sofa or dining table has become a bit more complex.

GST comes in different rates, from 0% for some items to 28% for the more luxurious ones. This means the cost of your dream furniture can vary widely depending on its material and style. Whether you’re eyeing a wooden masterpiece or a sleek steel set, understanding these tax rates is key to making smart buying decisions.

What is the HSN code for wood and wood-based products?

Wood, wood-made items, and wood charcoal are all included in the HSN Code beginning with 44. Therefore, the GST rate could range from 0% to 28%, depending on the kind of wooden commodity.

What is the GST rate for Firewood, Wood Charcoal and Wood Chips?

Fuelwood or firewood, as well as wood charcoal (which would include shell or nut charcoal), are not taxable under the GST, accumulation or not.

Wood in the form of chips, sawdust, particles, garbage, and scrap—whether or not consolidated into briquettes, logs, pellets, or other similar types is subject to a 5% Goods and Services Tax.

Understanding GST Rates for Different Types of Furniture Materials 

The Goods and Services Tax (GST) you pay on furniture can vary depending on the material it’s made from. This can affect the overall cost of your furniture selection, so it’s helpful to be aware of the different rates.

Here’s a breakdown of GST rates for common furniture materials:

Furniture Material	GST Rate	Popular Choices	Why it’s Popular	GST Impact
Wood	12% (28% for plywood)	Solid wood (teak, mahogany, oak), engineered wood (plywood, MDF), bamboo	Natural beauty, durability, classic appeal, eco-friendly options	Generally attracts lower GST; Plywood taxed at 28%
Metal	18%	Iron, steel, aluminium, wrought iron	Industrial style, durability, lightweight options, weatherproof	Higher GST rate than wood; Budget-friendly depending on design
Plastic	12% (may vary)	Polypropylene, polyethylene, PVC	Affordability, lightweight, variety of colours and styles, low maintenance	Generally falls under standard 12% GST; Variations based on upholstery and plastic-type
Upholstery	18% (unless base material is already classified as upholstered)	Fabric, leather, synthetic leather	Comfort, style, personalisation	Adds 18% GST if the base material isn’t already classified as upholstered
Glass	28%	Tempered glass, safety glass, frosted glass	Modern look, space-enhancing, used for tables, shelves, accents	Highest GST rate among common materials; Consider in budgeting

Key takeaways:

Wood and plastic furniture generally have a lower GST rate of 12%.

Metal furniture attracts a higher GST rate of 18%.

Upholstery adds an additional 18% GST unless the base material is already upholstered.

Glass furniture has the highest GST rate of 28%.

Need to know how to calculate GST percentage? Our GST calculation formula makes it simple and accurate.

Which of the wood and wooden-based furniture have 12% GST implemented on them?

Wood and wood-based furniture are subject to 12% GST.

The 12% GST applies to the following varieties of wood and wood products:

1. Wood flour and wood wool.
2. Wooden sticks that are useful for making umbrellas, walking sticks and tool handles. 
3. Wooden sleepers (cross-ties) for railways or tramways.
4. Wooden sticks that have been coarsely trimmed but not twisted, bent, or otherwise manipulated.
5. wooden furniture pieces.
6. Wooden pallet collars
7. Staves, as well as other coopers’ items made of wood, like barrels, casks, vats, and tubs.
8. Items made of wood that is a

• Board of jute particles
• Particle Board with Cement Bonds
• Board made of sisal fibre
• Board of Rice Husks
• Glass-fibre Reinforced Gypsum Board
• Agriculture crop residue-derived particle/fiberboard
• Board made of bagasse
• Particle board made of cotton stalks

9. Wooden brush or broom frames and handles, as well as equipment bases and handles.
10. Packaging barrels, cases, crates, and other similar wooden containers
11. Boxes, loading boards, and other wooden boards
12. Inlaid wood and wood marquetry
13. Wooden jewellery boxes, cutlery cases, and other related items
14. Kitchenware, kitchen utensils and tableware are made of wood. 
15. Wooden footwear or shoes last.
16. Wood cable drums
17. Pencil slats, match splints, Oars, paddles, and rudders for boats, ships, and other comparable marine equipment that are made of wood. 
18. Wooden statuettes and other embellishments
19. Other wooden items for diverse textile machinery, such as clothes hangers, cops, bobbins and spools.
20. Wooden items like hoops, split poles, heaps, pickets, and stakes of wood that are pointy but not cut longitudinally.

Which of the Wood and Wooden-Based Furniture Have 18% GST implemented on Them?

Wood and wooden products in the following categories are subject to an 18% GST:

1. Sliced or chipped wood
2. Wooden cutlery, utensils and kitchenware
3. Bamboo mat board that has been resin-bonded, whether with or without veneer
4. A raw piece of wood
5. Wood (regardless of whether planed, polished, or end-jointed) that is continuously shaped across any of its sides or surfaces
6. Floor tiles made of bamboo

Which of the Wood and Wooden-Based Furniture Have 28% GST implemented on Them?

The following kinds of wood and wooden items are subject to a 28% GST:

1. Wooden joinery and carpentry for builders, including the production of shakes, tiles, and cellular wood panels.
2. Other than the specified boards, wood or other ligneous substance fibre boards, irrespective of whether combined with resins or any other natural elements.
3. Components of ornamental items for the home that are used in the kitchen and as tableware or utensils.
4. Specified boards, particle boards, Oriented Strand Board (OSB), and comparable boards made of wood or other ligneous elements (regardless of whether they have been accumulated with resins or other natural binding agents.)
5. Wooden pavement blocks, densified wood products that are not otherwise included or mentioned, and 
6. Densified wood is shaped into plates, strips, blocks, or profile shapes.
7. Veneered panels, plywood, and other laminated wood products.
8. Wooden frames for mirrors, paintings, photos, and other such items.

Conclusion

The applicable tax rate for final wooden furniture pieces under the GST system is 12%. Plywood, frequently used in the design of wooden furniture, now carries a significantly higher GST rate of 28%, compared to the previous VAT rate of 5-6%. This increase in the GST rate on plywood has led to a rise in the sale price of wooden furniture. However, manufacturers of wooden furniture can benefit from an Input Tax Credit (ITC) on the GST paid on plywood as a raw material. For furniture producers to avail themselves of this ITC and ensure compliance with the GST norms, GST registration is crucial. This registration not only enables them to charge GST on their final products but also to reclaim it on their inputs, thereby managing costs more effectively.

Visit Vakilsearch if you want to learn more about GST on furniture and how you can safely and correctly apply and pay your GST: https://reg.gst.gov.in/registration/ without having to pay any extra charges. The professional and experienced legal team at Vakilsearch will fulfil all your legal demands effectively and efficiently.