FurnitureWood

GST on Furniture & Wood — Furniture 18%, Bamboo 12%, Firewood 5%

Complete GST guide for furniture & wood: wooden furniture 18%, timber/plywood/MDF 18%, bamboo furniture 12%, coir products 5%, mattresses 18%, doors & frames 18%, metal/plastic furniture 18%, paper products 12%, laminates 18%, and carpenter compliance (threshold, composition scheme).

18%

Wooden Furniture

18%

Timber / Logs

18%

Plywood / MDF

12%

Bamboo Furniture

18%

Mattresses

5%

Coir Products

5%

Firewood / Charcoal

18%

Doors & Frames

Furniture & Wood — GST Framework

Wooden Furniture — 18% GST

ALL WOODEN FURNITURE: 18% GST (HSN 9403). Includes: Beds (wooden): 18%. Wardrobes / almirahs: 18%. Dining tables & chairs: 18%. Study tables / desks: 18%. Bookshelves: 18%. TV units / entertainment centers: 18%. Dressing tables: 18%. Shoe racks: 18%. Kitchen cabinets (modular): 18%. Sofa sets (wooden frame): 18%. Garden furniture (wood): 18%. BRANDED vs UNBRANDED: Both 18% — no distinction. Whether sold by Godrej, Nilkamal, Urban Ladder, Pepperfry, or local carpenter — same rate. CUSTOM-MADE FURNITURE: Carpenter making furniture at customer's site: Composite supply (material + labor): 18% GST. Pure labor contract (customer provides wood): 18% (works contract on movable property). Job work on furniture: 12% (manufacturing job work). MODULAR KITCHEN: Modular kitchen (factory-made, installed at site): 18% GST. Includes: cabinets, countertops, shutters, hardware. Installation service (if separate): 18%. Composite supply (material + installation): 18% on total value. OFFICE FURNITURE: Office chairs (swivel): 18% (HSN 9401). Office desks/workstations: 18%. Partitions/cubicles: 18%. Conference tables: 18%. Filing cabinets: 18%. ITC: businesses claim full ITC on office furniture (capital goods — claimed over useful life or immediately if <₹5 lakh per item).

Timber, Logs & Raw Wood — 18%

TIMBER & SAWN WOOD: Timber (sawn/planed): 18% GST (HSN 4407). Logs (round wood): 18% (HSN 4403). Veneer sheets: 18% (HSN 4408). Wood chips: 5% (HSN 4401). Sawdust / wood waste: 5% (HSN 4401). Fuel wood / firewood: 5% (HSN 4401). Wood charcoal: 5% (HSN 4402). PLYWOOD & BOARD: Plywood (all types): 18% (HSN 4412). MDF (Medium Density Fibreboard): 18% (HSN 4411). Particle board: 18% (HSN 4410). Hardboard: 18% (HSN 4411). Blockboard: 18%. Flush doors (plywood): 18%. Laminates (Sunmica, Formica): 18% (HSN 4811). MAJOR COMPANIES: Century Plyboards: 18% on all products. Greenply Industries: 18%. Kitply: 18%. National Plywood: 18%. Archid Ply: 18%. ACTION Wood: 18%. PRE-GST vs POST-GST: Pre-GST: Excise 12.5% + VAT 5-14.5% = 18-27%. Post-GST: 18% (reduction for most states). Industry benefited: unified rate, simpler interstate trade. IMPORT of WOOD: Imported timber/logs: 18% IGST + customs duty (varies 5-10%). Teak from Myanmar/Africa: 18% IGST + 5% BCD. Softwood (pine, spruce) from USA/Canada/Russia: 18% IGST + 0-5% BCD. Imported plywood (Malaysia, Indonesia, China): 18% IGST + 20-25% BCD (anti-dumping duty may also apply).

Bamboo & Cane Products — 12% / 5% / Exempt

BAMBOO — MULTIPLE RATES: Raw bamboo (unprocessed): EXEMPT (agricultural produce). Bamboo furniture: 12% GST (HSN 9403). Bamboo flooring: 12% (HSN 4409). Bamboo mat/blind: 5% (HSN 4601). Bamboo basket/wickerwork: 5%. Bamboo charcoal: 5%. Bamboo shoots (food): 12% (processed food). WHY LOWER RATE FOR BAMBOO: (1) Classified as 'grass' not 'tree' (2017 amendment to Indian Forest Act). (2) Government promotes bamboo as sustainable alternative to wood. (3) National Bamboo Mission: ₹1,290 crore allocation. (4) Employment: 8+ million people in bamboo sector (mostly tribal/rural). (5) Northeast India: 67% of India's bamboo grows here — supports livelihoods. CANE / RATTAN: Cane furniture: 12% (HSN 9403). Rattan products: 12%. Wicker baskets: 5%. Cane mat/blind: 5%. COMPARISON — WOOD vs BAMBOO FURNITURE: Wooden dining table: 18%. Bamboo dining table: 12%. Saving: 6% for consumer choosing bamboo. Government incentivizing bamboo adoption through lower GST. ITC for bamboo products: Input bamboo may be exempt (raw) → output at 12%. Possible inversion: but small manufacturers use composition scheme anyway. PALM LEAF / SABAI GRASS: Products made from leaves, grass, straw: 5% or EXEMPT. Handicrafts from natural fibers: 5%. Palm leaf plates/cups: EXEMPT (eco-friendly alternative to plastic). Areca leaf plates: EXEMPT.

Metal & Plastic Furniture — 18% / 28%

METAL FURNITURE: Steel furniture (almirah, rack, bed): 18% (HSN 9403). Steel office furniture: 18%. Stainless steel kitchen rack: 18%. Wrought iron furniture: 18%. Aluminium furniture (garden): 18%. PLASTIC FURNITURE: Plastic chairs (moulded): 18% (HSN 9401). Plastic tables: 18%. Plastic storage cabinets: 18%. Plastic stools: 18%. Major players: Nilkamal (60%+ market share), Supreme, Cello, Avro. Pre-GST: plastic furniture was 28% in some states. Post-GST: rationalized to 18% (industry relief). UPHOLSTERED FURNITURE: Sofa sets (with upholstery): 18% (HSN 9401). Recliners: 18%. Bean bags: 18%. Cushions: 12% (HSN 9404). Pillows: 18%. MATTRESSES: All mattresses: 18% (HSN 9404). Coir mattress: 18% (was 5% pre-2022, increased to 18%). Foam mattress: 18%. Spring mattress: 18%. Memory foam: 18%. Brands: Sleepwell, Kurlon, Duroflex, Wakefit, SleepyCat — all 18%. COIR MATTRESS CONTROVERSY: Pre-July 2022: coir mattress was 5% (to support coir industry in Kerala/Karnataka). July 2022: GST Council increased to 18% (uniform rate with other mattresses). Industry protest: Kerala coir sector employs 7 lakh workers. Government response: refused to reverse — argued all mattresses should be equal. INFLATABLE MATTRESS / AIR BED: Inflatable mattress (camping/travel): 18%. Air mattress (medical — anti-bedsore): 12% (medical device classification if certified).

Doors, Windows & Interior Fittings — 18%

WOODEN DOORS & WINDOWS: Wooden doors (panel, flush, solid): 18% (HSN 4418). Door frames (wooden): 18%. Window frames (wooden): 18%. Wooden flooring (parquet, laminate): 18% (HSN 4409). Wooden staircase components: 18%. Wooden mouldings/skirting: 18%. UPVC/ALUMINIUM DOORS & WINDOWS: UPVC doors/windows: 18% (HSN 3925). Aluminium windows/frames: 18% (HSN 7610). Glass doors (framed): 18%. Sliding doors/windows: 18%. Shower enclosures (glass + metal): 18%. HARDWARE & FITTINGS: Door handles/knobs: 18% (HSN 8302). Hinges: 18%. Locks: 18%. Door closers: 18%. Cabinet handles: 18%. Drawer slides: 18%. Brands: Hettich, Hafele, Godrej Locks, Ozone, Ebco — all 18% on hardware. CURTAINS & BLINDS: Curtain fabric: 12% (≤₹1000/m) or 5% (cotton handloom). Ready-made curtains: 12%. Curtain rods (metal): 18%. Venetian blinds (metal/plastic): 18%. Roller blinds (fabric): 12%. Wooden blinds: 18%. WALLPAPER & WALL PANELS: Wallpaper: 18% (HSN 4814). PVC wall panels: 18%. WPC (Wood Polymer Composite) panels: 18%. Acoustic panels: 18%. 3D wall panels: 18%. INTERIOR DESIGN SERVICE: Interior design consultancy: 18% (professional service). Turnkey interior execution (material + labor): 18% (works contract on movable property). Painting service: 18%. Carpentry service: 18% (if registered). Small carpenter (below ₹20L turnover): exempt from GST registration. Composition scheme (₹20L-1.5Cr): 1% flat rate.

Paper & Forest Products — 12% / 18%

PAPER PRODUCTS (from wood pulp): Writing/printing paper: 12% (HSN 4802). Newsprint: 5% (HSN 4801). Kraft paper: 12% (HSN 4804). Corrugated boxes/cartons: 18% (HSN 4819). Paper bags: 18% (above ₹1000/ton) or 12%. Tissue paper/napkins: 18% (HSN 4818). Toilet paper: 18%. Paper plates/cups: 18% (if not compostable — see below). Compostable paper plates: 5% or EXEMPT (eco-products). WOOD-BASED PRODUCTS: Pencils (wooden): 12% (HSN 9609). Matchsticks (wooden): 5% (HSN 3605). Toothpicks: 5%. Wooden toys: 12% (HSN 9503). Cricket bats (willow): 12% (HSN 9506). Wooden picture frames: 18%. Wooden handicrafts: 12% (if handmade). ESSENTIAL OILS / WOOD EXTRACTS: Sandalwood oil: 18%. Eucalyptus oil: 18%. Camphor (from wood): 5% (religious use — camphor for puja). Turpentine oil: 18%. Rosin (pine resin): 18%. Lac / shellac: 18%. AGARBATTI (INCENSE): Agarbatti (hand-rolled): EXEMPT (cottage industry product). Dhoop/sambrani: 5%. Camphor: 5%. The exemption for hand-rolled agarbatti protects millions of home-based workers. Machine-made agarbatti: 5% (not exempt — only hand-rolled is exempt). RUBBER WOOD: Rubber wood furniture: 18% (same as any wooden furniture). Rubber wood timber: 18%. Rubber plantation wood (byproduct): 18%. Kerala/Karnataka: major rubber wood furniture hubs.

Furniture & Wood — GST Rate Table

ItemHSNGST RateNotes
Wooden furniture (all types)940318%Beds, tables, chairs, wardrobes
Timber / sawn wood / logs4403/440718%All species
Plywood / MDF / particle board4410-441218%Century, Greenply etc.
Bamboo furniture940312%Lower rate — sustainability
Raw bamboo (unprocessed)1401ExemptAgricultural produce
Mattresses (all types)940418%Coir, foam, spring, memory
Coir products (rope, mats)5305/57025%Supports coir industry
Firewood / wood charcoal4401/44025%Fuel use
Doors & frames (wooden)441818%Panel, flush, solid
Laminates (Sunmica)481118%Decorative surfaces
Plastic furniture (chairs, tables)9401/940318%Nilkamal, Supreme
Steel furniture940318%Almirahs, racks, beds

Frequently Asked Questions

Why is all furniture at 18% GST — shouldn't basic household furniture be cheaper at 12% or 5%?
FURNITURE AT 18% — THE RATIONALE: THE RATE LOGIC: GST Council classified ALL furniture (wood, metal, plastic) under 18% slab. No distinction between: luxury furniture (Italian imports) and basic furniture (local carpenter). ₹5,000 steel almirah: 18%. ₹5,00,000 imported sofa: 18%. WHY NOT LOWER: (1) PRE-GST COMPARISON: Most states had: excise 12.5% + VAT 5-14.5% = 18-27% total. GST at 18% is actually LOWER than pre-GST for most furniture. Industry did NOT demand lower rate (they benefited from GST vs old regime). (2) ITC CHAIN: If furniture is 12%: inputs (wood 18%, hardware 18%, paint 18%, fabric 12-18%) would create INVERTED DUTY. Manufacturers would claim refunds constantly (administrative burden). At 18%: inputs and output at same rate = smooth ITC flow. (3) REVENUE: Furniture is ₹2.5 lakh crore market. Difference between 12% and 18% = ₹15,000 crore revenue. Government unwilling to lose this. (4) NOT A 'NECESSITY': Food, medicine, education = necessities (0-5%). Furniture = household goods (18% slab). Even in EU: furniture is standard VAT rate (20-27%). EXCEPTIONS — LOWER RATES: Bamboo furniture: 12% (sustainability incentive). Cane/wicker: 12%. Hand-crafted items (artisan certificate): may qualify for 12%. Palm leaf furniture/products: exempt or 5%. CARPENTER'S DILEMMA: Small carpenter (below ₹20 lakh turnover): exempt from GST. Carpenter earning ₹20-40 lakh: must register, charge 18%. Many carpenters avoid registration → stay below threshold. Impact: discourages growth/formalization. Solution used: composition scheme (1% on turnover up to ₹1.5 crore). ONLINE FURNITURE (Pepperfry, Urban Ladder, Amazon): TCS (Tax Collected at Source): e-commerce operator collects 1% TCS. Seller charges 18% GST to buyer. Platform commission: 18% GST (on commission amount). No rate difference between online and offline purchase.
How does GST work for carpenters and small furniture makers — do they need to register?
CARPENTERS & SMALL FURNITURE MAKERS — GST OBLIGATIONS: THRESHOLD FOR REGISTRATION: General states: ₹20 lakh turnover (annual aggregate) → must register. Special category states (NE + hill states): ₹10 lakh. BELOW THRESHOLD (₹0-20 lakh): NO registration required. NO GST to charge customers. NO return filing. Can still get GST number voluntarily (useful if selling to businesses who want ITC). ABOVE THRESHOLD (₹20 lakh - ₹1.5 crore): Two options: (A) REGULAR SCHEME: Charge 18% GST on furniture. File GSTR-1 (monthly/quarterly). File GSTR-3B (monthly/quarterly). Claim ITC on inputs (wood, hardware, paint, tools). (B) COMPOSITION SCHEME: Pay flat 1% on total turnover. NO ITC claim. File quarterly return only. Cannot sell interstate. Cannot sell on e-commerce. Simpler — preferred by small makers. TAX COMPARISON FOR CARPENTER (₹30 lakh annual turnover): Regular scheme: Collect 18% GST: ₹5.4 lakh. ITC on inputs (assume 60% is material): ₹18L × 18% = ₹3.24 lakh. Net tax: ₹5.4 - 3.24 = ₹2.16 lakh. Composition scheme: 1% of ₹30 lakh = ₹30,000. No ITC. Savings: ₹2.16L - ₹0.30L = ₹1.86 lakh saved. Composition is ALWAYS cheaper for small makers. BUT: buyers (businesses) can't claim ITC on composition seller's invoice. PRACTICAL REALITY: 80%+ carpenters are below ₹20L threshold (unregistered). Of those above: 70%+ use composition scheme. Only large furniture workshops (₹1.5 Cr+): mandatory regular scheme. WORKS CONTRACT vs GOODS: Carpenter supplies wood + makes furniture at YOUR home: works contract (movable property) — 18%. Carpenter makes furniture at HIS workshop, delivers to you: sale of goods — 18%. Pure labor (you provide all materials): 18% on labor charges. No rate difference — all 18%. But classification matters for HSN code and return filing.
What happened to coir mattresses — why was the rate increased from 5% to 18% in 2022?
COIR MATTRESS RATE HIKE — 5% TO 18% (July 2022): THE CHANGE: Pre-July 2022: Coir mattresses: 5% (HSN 9404 — classified separately as coir product). Rubber/foam/spring mattresses: 18%. July 2022 GST Council meeting: ALL mattresses unified at 18%. Including coir mattresses. WHY THE INCREASE: (1) INVERTED DUTY STRUCTURE: Coir mattress: output 5%. Inputs: coir fiber 5%, rubberized coir 12%, fabric 12%, springs 18%, packaging 18%. Massive ITC accumulation (inputs at 12-18%, output at 5%). Companies claiming huge refunds — revenue loss. (2) CLASSIFICATION ABUSE: Companies selling FOAM mattresses with thin coir layer → classifying as 'coir mattress' → paying 5%. Enforcement nightmare: what % coir makes it a 'coir mattress'? 50%? 20%? 5%? By unifying at 18%: no classification dispute. (3) REVENUE NEUTRALITY: Mattress industry: ₹15,000-20,000 crore market. Even genuine coir mattresses → at 5%, refund claims exceeded revenue. Net revenue from coir mattresses was NEGATIVE (government paying out more in refunds than collecting). (4) GST COUNCIL PRINCIPLE: 'Same product, same rate' — a mattress is a mattress regardless of filling. A car with diesel engine and petrol engine: same GST (both 28% + cess). Same logic applied to mattresses. IMPACT ON KERALA COIR INDUSTRY: Kerala: largest coir producer in India (60%+ share). Coir workers: 7+ lakh (mostly women, home-based). Industry associations protested heavily. Chief Minister wrote to Finance Minister — no reversal. Actual impact: Limited. Most coir goes to: rope, matting, geo-textiles (still 5%). Only coir MATTRESSES increased. Coir mattress is small segment (15-20% of Kerala's coir output by value). COMPANIES AFFECTED: Duroflex (coir range): had to increase prices. Kurlon (coir mattresses): price increase 8-10%. Rubco (Kerala cooperative): most impacted (predominantly coir). Kurl-on, Centuary: minimal impact (mostly foam). CONSUMER IMPACT: ₹5,000 coir mattress: Old: ₹5,000 + 5% = ₹5,250. New: ₹5,000 + 18% = ₹5,900. Increase: ₹650 per mattress (12.4% price hike for consumer). Middle-class buyers shifted to foam (same rate, more comfortable). Coir mattress market share: declining post-rate hike.
How does GST apply to the timber trade and forest produce — what about illegal logging concerns?
TIMBER TRADE & FOREST PRODUCE — GST + REGULATORY FRAMEWORK: LEGAL TIMBER TRADE: All timber: 18% GST (regardless of species). Transit permit (TP) required for interstate movement of timber. State forest department issues transit permits. E-way bill: required if value > ₹50,000 (like any goods). Both TP and e-way bill needed for timber transport. FOREST PRODUCE — GST RATES: Timber (logs, sawn): 18%. Minor Forest Produce (MFP): Tendu leaves: 18% (RCM). Sal seeds: 5%. Lac/shellac: 18%. Gum/resin: 18%. Honey (natural, unprocessed): NIL (exempt). Medicinal plants (fresh): NIL. Bamboo (raw): NIL. Firewood: 5%. Charcoal (wood): 5%. TRIBAL/ADIVASI EXEMPTIONS: Forest produce collected by tribals: mostly exempt or 5%. Van Dhan Kendras (tribal processing centers): exempt if value addition is minimal. Tribal cooperatives: may use composition scheme (1%). Government policy: protect tribal livelihood from tax burden. MSP (Minimum Support Price) for MFP: government scheme — no GST on MSP transactions. ILLEGAL LOGGING & GST ANGLE: PROBLEM: India loses ₹2,000-5,000 crore annually to illegal timber trade. GST's role in COMBATING illegal logging: (1) E-way bill: timber movement tracked electronically. (2) E-invoicing (above ₹5 Cr): large timber dealers must issue e-invoice. (3) ITC chain: if timber is purchased without GST invoice → buyer cannot claim ITC. (4) GSTR-2A matching: purchases must match supplier's GSTR-1. HOW ILLEGAL TIMBER EVADES GST: (a) Cash transactions (no invoice). (b) Forged transit permits. (c) Under-invoicing (show ₹500/cft, actual ₹2,000/cft). (d) Fake firms (purchase from fictitious suppliers). (e) Mixing illegal with legal stock. DEPARTMENT ACTIONS: Joint operations: forest department + GST intelligence. Checking: transit permits vs e-way bills. Timber yards: regular GST audit (stock vs books). Sawmill registration: mandatory GST + forest department license. PLANTATION TIMBER vs FOREST TIMBER: Plantation timber (teak, eucalyptus, poplar on private land): 18% GST. No transit permit needed (private property — not forest land). But: must prove it's from plantation (ownership documents). Forest timber (government auction): 18% GST + transit permit mandatory. Auction by forest department: GST charged by department (government entity). IMPORT TIMBER: Customs duty: 0-5% (most species). IGST: 18%. Social Forestry Certificate: required for some species (CITES regulations). Popular imports: teak (Myanmar), pine (USA), meranti (Malaysia). Indian teak shortage → import dependency increasing.

Furniture & Wood GST — Invoicing, ITC & Compliance

Laabam.One handles furniture & wood GST: 18% invoicing for wooden/metal/plastic furniture, bamboo at 12%, composition scheme for carpenters (1% flat), ITC on office furniture (capital goods), modular kitchen billing, plywood/MDF HSN classification, and timber trade compliance with e-way bills.

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