Explore the latest HSN codes and GST rates for furniture, mattresses, and home furnishings under Chapter 94. Stay informed on tax classifications for accurate filing.
Facing confusion when it comes to tax classifications for furniture and related items? You’re not alone. Understanding HSN codes and GST rates can be a challenging! This comprehensive guide will equip you with the knowledge needed to navigate the world of Chapter 94 and ensure accurate tax compliance.
Lets Understand the Basics:
Before exploring in, let’s establish some key concepts:
- HSN Codes: These are standardized codes used internationally to classify products for customs and tax purposes.
- GST: Goods and Services Tax, a multi-stage, value-added tax applicable on most supplies of goods and services in India.
Chapter 94 of the HSN code system encompasses furniture, bedding, mattresses, mattress supports, cushions, and similar stuffed furnishings. Identifying the correct HSN code for your furniture item is crucial for accurate tax filing and compliance.
The Importance of Accurate HSN Classification
Choosing the wrong HSN code can lead to:
- Penalties: Incurring unnecessary penalties from tax authorities.
- Filing Errors: Jeopardizing the accuracy of your tax returns.
- Delays and Complications: Facing potential delays and complications during the filing process.
A Breakdown of Furniture Codes
To simplify the process, we’ve compiled a table outlining different furniture categories with their corresponding HSN codes and brief descriptions:
| Rates(%) | Products Description | HSN Codes | Export and Import HSN Codes |
|---|---|---|---|
| 18 | Seats (other than aircraft seats) and parts thereof | 9401 (except 94011000) | 94011000 (No separate code) |
| 5 | Aircraft seats | 94011000 | No separate code prescribed |
| 12 | Furniture of bamboo, rattan, and cane | 9401940150, 940380 | – |
| 18 | Medical, surgical, dental or veterinary furniture and parts thereof | 9402 | 9402 |
| 12 | Furniture wholly made of bamboo, cane, or rattan | 940394031010, 94031090, etc. (excluding other materials) | – |
| 18 | Other furniture and parts thereof (excluding bamboo, cane, and rattan) | 940394031010, 94031090, etc. (including other materials) | – |
| 5 | Cotton quilts (sale value <= Rs. 1000 per piece) | 9404 | 9404 |
| 12 | Cotton quilts (sale value > Rs. 1000 per piece) | 9404 | 9404 |
| 18 | Coir products (except coir mattresses) | 9404 | 9404 |
| 12 | Products wholly made of quilted textile materials | 9404 | 9404 |
| 18 | Coir mattresses, cotton pillows, and mattresses | 9404 | 9404 |
| 18 | Other mattress supports, articles of bedding, and similar furnishing (excluding coir products, quilted textile products, and cotton quilts) | 9404 | 9404 |
| 12 | Hurricane lanterns, kerosene lamps, petromax, glass chimneys, and parts thereof (excluding gas mantles) | 9405 | No separate code prescribed |
| 12 | LED lights or fixtures, LED lamps | 9405 | 9405 |
| 12 | LED drivers and MCPCBs | 9405 | 9405 |
| 18 | Other lamps and lighting fittings, illuminated signs, and parts thereof (excluding kerosene pressure lanterns, hurricane lanterns, LED lights, and LED drivers) | 9405 | No separate code prescribed |
| 12 | Handcrafted lamps | 9405 | – |
| 5 | Parts of kerosene pressure lanterns (excluding gas mantles) | 9405 (except 94055031) | No separate code prescribed |
| 5 | Gas mantles for kerosene pressure lanterns | 94059900 | No separate code prescribed |
| 5 | Kerosene pressure lanterns | 94055031 | No separate code prescribed |
| 12 | Hurricane lanterns, kerosene lamps/pressure lanterns, petromax, glass chimneys, and parts thereof (including gas mantles) | 94055031 | No separate code prescribed |
| 18 | Prefabricated buildings | 9406 | 9406 |
GST Rates for Furniture and Beyond
Now that we understand HSN codes, let’s explore the applicable GST rates:
| Product Category | HSN Code Range | GST Rate |
|---|---|---|
| Mattresses (excluding coir) | 9404 (excluding 9404.21.90) | 18% |
| Coir Mattresses | 9404.21.90 | 5% |
| Lighting Fixtures and Lamps | 9405 | 18% |
| Prefabricated Buildings (falling under Chapter 94) | 9406 | 18% |
It’s important to note that not all furniture falls under Chapter 94. Items like carpets (HSN Chapter 57) and musical instruments (HSN Chapter 92) are classified differently. Additionally, specific furniture items within Chapter 94 might have unique classification considerations.
Practical Tips for Businesses
Managing GST compliance can be complex, especially for businesses. Here are some helpful tips:
- Maintain accurate records: Keep detailed records of purchases, sales, and HSN code classifications.
- Seek professional guidance: Consult with our tax experts at Vakilsearch for personalized advice and assistance.
1. How to determine the correct HSN code for a furniture item?
Determining the correct HSN code for furniture can be complex due to the various materials, functionalities, and types involved. Here's what you can do: Consult the official HSN code list: The Central Board of Indirect Taxes and Customs (CBIC) website provides a searchable list of HSN codes: https://www.cbic.gov.in/. Identify the material and function: Start by identifying the primary material (wood, metal, plastic, etc.) and the function of the furniture (seating, sleeping, storage, etc.). Use online resources: Several websites offer HSN code lookup tools specifically for furniture. However, ensure the information is reliable and up-to-date
2. What to do if an item falls under multiple HSN codes?
If an item seems to fit under multiple HSN codes, the general rule is to classify it under the code with the highest specificity. This means the code that most accurately describes the item's characteristics takes precedence. For example, a wooden chair with armrests might fall under both seats and chairs with armrests categories. In this case, the specific code for chairs with armrests would be chosen
3. What is the GST rate for lamps in India?
The GST rate for lamps in India generally falls under 12%. However, specific types of lamps might have different rates. It's recommended to check the HSN code of the specific lamp for an accurate rate.
4. What is the GST rate for mattresses and HSN code?
The GST rate for mattresses in India varies depending on the materials used. Here are some examples: Cotton mattresses: 5% (HSN code 9404) if the sale value per piece is less than Rs. 1000. Otherwise, 12% (HSN code 9404). Coir mattresses: 18% (HSN code 9404). Other mattress types: Refer to the specific HSN code and consult the CBIC website or a tax professional for confirmation.
5. What is the HSN code for Furniture GST?
Furniture doesn't have a single HSN code under GST. The code depends on the specific type and material of the furniture. Get in touch with Vakilsearch tax expert and know more!
6. What is the HSN code for lamps and lighting fittings?
The HSN code for lamps and lighting fittings generally falls under Chapter 9405. However, specific types of lamps might have different codes within this chapter. It's crucial to identify the specific lamp type and refer to the official HSN code list for an accurate code.
7. What is the GST rate for iron beds in India?
The GST rate for iron beds in India is 18%. This falls under the general category of Other furniture and parts thereof (HSN code 9403) unless classified differently due to specific features.
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