Furniture is like the storyteller of our homes, adding beauty and making our spaces comfortable. Picking furniture doesn’t just make our homes cosy; they are great for impressionable aesthetics and can be used as storage solutions as well. However, it’s now linked with GST rates. Let’s unravel the impact of GST on furniture – from the cosy chairs to the stylish tables – and explore how these taxes are reshaping the narrative of our savvy homes. Join us as we navigate the intersection of home aesthetics and the tax landscape with furniture GST rates.
Things we covered for you
+
Understanding GST Rates for Different Types of Furniture Materials
Each type of furniture material carries its own Goods and Services Tax (GST) rate, shaping the financial landscape of our homes. Let’s check the details of these rates and explore how they influence the cost and affordability of the furniture we bring into our living spaces. Here’s a table summarising the GST rates for different types of 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 |
GST Rate Slabs: NIL, 5%, 12%, 18%, and 28%
The GST rate structure operates within five distinct slabs: NIL, 5%, 12%, 18%, and 28%. Each slab corresponds to a specific percentage of tax applied to goods and services, including furniture. NIL signifies that certain items are exempt from GST, while the other slabs range from 5% for essential goods to 28% for luxury and high-end items. Navigating these slabs is pivotal for understanding the tax implications on various types of furniture materials – be it wooden, plastic, steel, bamboo, or upholstered.
Read: 5 Tips to Get Rid of Bugs
Book Best Packers & Movers with Best Price, Free Cancellation, Dedicated Move Manager
This is third
This is third
This is fourth
This is fourth
This is fifth
This is fifth
This is six
This is six
This is seven
This is seven
This is eight
This is eight
What are the GST and HSN Codes for Furniture?
The symbiotic relationship between the Goods and Services Tax (GST) and the Harmonised System of Nomenclature (HSN) code forms the backbone of India’s taxation system. Let’s take a look at what exactly these terms imply
A. Goods and Services Tax (GST)
- What’s GST?: GST is like a single ticket for all the taxes we used to pay before. It keeps things neat and simple, making sure we don’t pay taxes on top of taxes.
- GST Council and Rate Slabs: Think of the GST Council as the decision-making team. They set the rates for different things. There are five levels, like stairs: no tax, 5%, 12%, 18%, and 28%. It’s like putting things on the right shelf so everyone knows what to pay.
- Input Tax Credit (ITC): With GST, businesses get a cool feature called Input Tax Credit. It’s like a discount for businesses. They can subtract the tax they paid on buying things from the tax they get from selling things. It keeps things fair and square.
B. Harmonised System of Nomenclature (HSN) Code:
- Overview of HSN Code: The HSN code is a globally accepted system for the classification of goods. It provides a structured code for each product, facilitating uniformity in trade and customs. For services, there’s something called SAC (Service Accounting Code). It’s like a product’s ID card.
- Importance of HSN Code: HSN codes make sure everyone speaks the same language. They help businesses and tax folks understand exactly what each product is. It’s like putting labels on things so nobody gets confused.
- Detailed Classification: HSN codes are detailed tags for products. They tell you everything about a product – what it’s made of, what it’s for – in a secret code language. It’s like giving each product its own fingerprint.
C. Integration of GST and HSN Code:
- Reporting and Compliance: When businesses report their sales for taxes, they use the HSN code. It’s like saying, “Hey, this is what I sold, and here’s the secret code that says exactly what it is.” It helps keep things organised.
- Threshold for HSN Code Reporting: If a small business sells only a little, it doesn’t have to use HSN codes. But as it grows, it needs to start using them. It’s like starting with a small puzzle and, as the puzzle gets bigger, using more pieces to show the whole picture.
Explanation of HSN Code 44
HSN Code 44 falls under the broader category of “Wood and Articles of Wood; Wood Charcoal.” This specific code provides a systematic classification for various wood and wooden products, helping in international trade, taxation, and regulatory compliance. Here’s a table summarising the key components of HSN Code 44:
| HSN Code | Description |
| 4401 | Fuel Wood, Wood in Chips or Particles; Sawdust and Wood Waste |
| 4402 | Wood Charcoal (Including Shell or Nut Charcoal), Whether or Not Agglomerated |
| 4403 | Wood in the Rough, Whether or Not Stripped of Bark or Sapwood, or Roughly Squared |
| 4404 | Hoopwood; Split Poles; Piles, Pickets, and Stakes of Wood, Pointed But Not Sawn Lengthwise; Wooden Sticks |
| 4405 | Wood Wool; Wood Flour |
| 4406 | Railway or Tramway Sleepers (Cross-Ties) of Wood |
| 4407 | Wood Sawn or Chipped Lengthwise, Sliced or Peeled, Whether or Not Planed, Sanded or End-Jointed |
GST on Wooden Furniture: A Slab-wise Breakdown
The Goods and Services Tax (GST) structure in India categorises various goods and services into different tax slabs, ranging from NIL to 5%, 12%, 18%, and 28%. When it comes to wooden furniture, the applicable GST rates fall into specific slabs, determining the percentage of tax imposed on these products. Let’s explore the slab-wise breakdown of GST on furniture made with wood:
| GST Slab | Description of Wooden Furniture |
| NIL | Certain types of wooden furniture enjoy a NIL GST rate. |
| 5% | Wood in the form of chips, sawdust, particles, garbage, and scrap. |
| 12% | – Wood flour and wood wool. |
| – Wooden sticks for umbrellas, walking sticks, and tool handles. | |
| – Wooden sleepers (cross-ties) for railways or tramways. | |
| – Various wood-based products including particle boards, glass-fibre reinforced gypsum board, agriculture crop residue-derived particle/fiberboard, and more. | |
| 18% | Finished wooden furniture pieces like chairs, tables, beds, wardrobes, etc. |
| 28% | Specific high-end wooden items such as wooden joinery, frames for mirrors and paintings, veneered panels, and laminated wood products. |
GST Rates for Metal and Steel Furniture
Remember that beautiful wrought iron patio set you were eyeing? Or the sleek industrial desk promising productivity-boosting vibes? Before you open your wallet, let’s understand the GST that hangs like a price tag in the air. The applicable GST rate on metal furniture depends on the specific type of metal furniture and its intended use.
- 18% GST: Metal furniture, including items such as chairs, tables, cabinets, and other finished metal furniture pieces, typically falls under the 18% GST slab. This rate is applicable to fully crafted and ready-to-use metal furniture.
- Other Considerations: The GST rate can vary based on factors such as the composition of the metal, whether the furniture is customised or ready-made, and its specific use. Additionally, certain metal furniture items may fall under different GST slabs based on their classification.
- Exceptions Exist: Keep your eyes peeled for specific types of metal furniture that might fall under a different slab. For instance, some specialised equipment used in factories or workshops might have a lower rate.
- HSN Codes Matter: Don’t let these alphanumeric strings intimidate you. Each type of furniture has a specific HSN code, and it’s this code that tells you the exact GST rate to expect. Remember, the devil’s in the details
GST on Plastic Furniture
Plastic furniture, with its lightweight and versatile attributes, has become a ubiquitous choice for both homes and offices. However, before you embark on your next plastic furniture shopping spree, understanding the nuances of Goods and Services Tax (GST) is crucial. Let’s delve into the world of taxes surrounding plastic furniture, demystifying the GST rates and considerations that come into play.
General Rule: 12% GST
In general, most plastic furniture is subjected to a 12% GST rate. This moderate tax rate appliesto commonly used items such as chairs, tables, storage units, and other everyday plastic furniture pieces. While it may not be overly burdensome, it’s essential to be aware of this standard rate.
Exceptions and Considerations
However, the realm of plastic furniture isn’t one-size-fits-all when it comes to GST. Here are some exceptions and considerations:
- Upholstery Matters (18% GST): If your plastic chair boasts fancy fabric padding or upholstery, it may be classified as upholstered furniture, attracting a slightly higher 18% GST rate.
- Industrial vs. Domestic Use: The purpose of plastic furniture matters. Items used in industrial settings or workshops may have different GST rates, contingent on their specific functions. This differentiation is often determined by Harmonised System of Nomenclature (HSN) codes.
- Recycled Plastic Incentive (5% GST): Some countries, including India, offer a lower GST rate of 5% for furniture crafted from recycled plastic. This serves as an eco-friendly and cost-effective option for consumers.
Why GST rates on Furniture and Materials are Important for a Consumer?
Understanding the Goods and Services Tax (GST) rates on furniture and materials is crucial for consumers for several reasons:
- Budget Planning: GST directly impacts the cost of furniture. Knowing the applicable rates helps consumers plan their budget effectively and avoid unexpected expenses.
- Affordability: Different materials attract different GST rates. This knowledge enables consumers to choose materials that not only suit their preferences but also align with their budget constraints.
- Variation in Material Costs: Each material—wood, metal, plastic, upholstery, glass—comes with its own GST rate. Being aware of these variations empowers consumers to make cost-effective choices without compromising on quality.
- Tax Efficiency: Understanding GST rates ensures that consumers can optimise their tax liability. This includes considering materials with lower GST rates and factoring in additional costs, such as upholstery, that may impact the overall tax on furniture.
- Informed Decision-Making: Consumers armed with knowledge about GST rates can make informed decisions based on both aesthetic preferences and financial considerations. This helps in avoiding surprises during the purchase process.
- Legal Compliance: Knowledge of GST rates ensures that consumers are aware of the legal aspects of their purchases. This awareness contributes to compliance and prevents unintentional violations.
Choosing furniture involves more than aesthetics—it’s about understanding GST rates. Wood? 12%. Metal? 18%. Plastic? Usually 12%. Upholstery adds 18%, and glass tops it at 28%. Keep it simple. For reliable updates and insights, NoBroker has your back with the best carpenters near you. Happy shopping!
Frequently Asked Questions
1. What is GST?
GST, or Goods and Services Tax, is a unified indirect tax introduced in India in 2017, replacing various pre-existing taxes. It applies to the supply of goods and services across the country.
2. Why is it important to know GST rates on furniture?
Understanding GST rates on furniture is crucial for budget planning, making informed purchasing decisions, and ensuring compliance with tax regulations.
3. What are the different GST rates for furniture materials?
GST rates vary for different materials. For example, wood attracts 12%, metal is at 18%, plastic generally at 12%, upholstery at 18%, and glass at 28%.
4. How does GST impact the affordability of furniture?
GST directly affects the cost of furniture. Knowing the applicable rates helps consumers choose materials that align with their budget and preferences.
5. Does GST vary for customised furniture?
No, GST rates for customised furniture are the same as for ready-made furniture. The rates are determined by the material used and its classification.
6. Is GST applicable to both online and offline furniture purchases?
Yes, GST is applicable to both online and offline furniture transactions. The same tax rules apply regardless of the purchasing platform.
7. Are there any exemptions for GST on furniture?
Generally, there are no specific exemptions for GST on furniture. However, specific items may be taxed at lower rates based on their classification.
8. How often do GST rates on furniture change?
GST rates are subject to periodic reviews by the GST Council, and changes can occur. Staying updated on these changes is essential for consumers and businesses.
9. Can I get a tax refund on furniture purchases?
Generally, there is no provision for a tax refund on furniture purchases. However, businesses involved in the supply chain may be eligible for Input Tax Credit (ITC).
10. Where can I find reliable updates on GST rates for furniture?
NoBroker is a reliable source for ongoing updates and insights on GST rates for furniture. Their team of legal professionals and tax experts ensures accurate and timely information.
