GST on furniture in India

When India introduced its Goods and Services Tax (GST) in 2017, it completely transformed the country's tax landscape, especially among furniture businesses. The introduction of GST on furniture established a more transparent tax framework, eliminating multiple indirect taxes and introducing a single, unified tax.

However, there's a catch - the GST rate on furniture has been made simpler through GST 2.0 reforms, effective from 22nd September 2025. Read on to learn about the various aspects of GST on furniture items, including current rates, their impact on the industry, and why consumers should be aware of these rates.

GST rates on furniture in 2025

Most finished wooden furniture is subject to 18% GST under Chapter 94 of the GST rate schedule. Firewood and wood charcoal are exempt from GST, while wood in chip form, sawdust, and waste wood are taxed at 5%. Wooden tableware and kitchenware are included in the 18% slab, while wood tar, wood naphtha, and residual waste from wood pulp processing are still at 18%.

When it comes to metal furniture, including steel and metal chairs, tables, cabinets, and office furniture, the GST rate remains at 18%. Under GST 2.0, Glass furniture has consistently attracted 18% GST under Chapter 94; it was never notified under the 28% slab. all glass furniture is taxed at the regular 18% rate.

Plastic furniture, such as chairs, tables, and storage shelves, is now taxed uniformly at 18% GST through GST 2.0. Similarly, Finished bamboo, cane and rattan furniture falls under Chapter 94 and attracts 18% GST., while other upholstered furniture is still at 18%.

GST rates for different types of furniture materials

GST rates for furniture depend on the materials used in its manufacture. Here's how the rates break down for common materials:

GST and HSN codes for furniture

The Harmonised System of Nomenclature (HSN) helps classify goods for tax purposes. For wooden furniture, the HSN code is 9403. Metal furniture typically falls under HSN code 9403 1010, while plastic furniture is classified under HSN code 9403 7010.

Manufacturers, retailers, and consumers need to know the correct HSN codes for furniture items. This ensures they calculate GST on furniture accurately and stay compliant with tax rules.

GST rates on wooden furniture

Here are the applicable GST on furniture made of wood:

• Most completed wooden furniture, such as chairs, tables, wardrobes, and beds, are charged 18% GST under GST 2.0.
• Firewood and wood charcoal are GST-exempt.
• Wood chips, sawdust, and waste wood get taxed at 5%.
• Wooden tableware and kitchenware are now charged 18% GST.
• Wood tar, wood naphtha, and residual materials from wood pulp production are subject to an 18% GST rate.
• Fibrewood, plywood, and laminated wood are now taxed 18% GST under GST 2.0 and are more economical than before.
• Bamboo, cane, and rattan furniture are charged a lower 5% GST to encourage environmentally friendly furniture

GST on steel and metal furniture

Steel and metal furniture, including chairs, tables, cabinets, almirahs, and office furniture, generally attracts 18% GST. In GST 2.0, all completed furniture, including glass furniture, is equally taxed at 18%, removing the earlier differences.

GST on plastic furniture

Plastic furniture, such as chairs, tables, and storage cabinets, is presently taxed at an 18%. GST rate under GST 2.0 reforms, bringing in uniformity to all furniture types. All plastic furniture, both regular and custom-designed, is taxed equally at 18% GST.

Impact of GST rate on the furniture industry

GST has brought several changes to the industry, such as:

• Uniform tax rate: A uniform 18% GST rate for most finished furniture in GST 2.0 has additionally streamlined the tax system and improved transparency in pricing in all materials
• Input tax credit (ITC): Manufacturers and dealers can now claim credit for taxes they've paid on inputs, potentially saving costs and offering more competitive prices.
• Increased compliance burden: Although GST has simplified the tax structure, businesses now face more stringent compliance requirements, compelling them to adopt new processes and systems.
• Market dynamics: Standardised tax rates have made cross-state operations easier for businesses, creating a more unified national market and boosting growth and scale opportunities.
• Lower raw material prices: The lowering of plywood and laminated wood from 28% to 18% has reduced raw material costs for furniture makers, which could cut the costs of final products.
• Green incentive: The 5% GST on bamboo, cane, and rattan furniture promotes sustainable furniture purchases and the survival of small handicraft makers.

Why are GST rates on furniture and materials important for a consumer?

Consumers need to understand GST rates on furniture and materials for several reasons:

• Price transparency: Knowing the applicable GST rates helps consumers understand the total cost of the furniture they want to buy.
• Budgeting: Being aware of GST rates enables consumers to plan their furniture purchases more effectively and allocate budgets accordingly.
• Informed decision-making: Understanding how GST rates impact different types of furniture and materials enables consumers to make informed choices based on their preferences and budget constraints.
• Comparing prices: With a clear understanding of GST rates, consumers can effectively compare prices across brands, retailers, and materials to find the best value for their money.
• Availing of input tax credit: For consumers who operate registered businesses, understanding GST rates on furniture enables them to claim input tax credit on purchases, ultimately reducing their tax burden.
• Sustainable choices: The 5% low GST on bamboo, cane, and rattan furniture reduces the cost of sustainability for green consumers.

GST payment solution

Nowadays, GST payment has been made easier with options like the Axis Bank's GST Payment Service. It is a convenient solution for both retail and corporate customers to pay GST on furniture through various channels like:

• Internet banking
• NEFT/RTGS
• Over-the-counter at Axis Bank branches

By using the GST payment facility, businesses can ensure timely and hassle-free payment of their GST dues, maintaining compliance with tax regulations.

Also Read: Old vs new tax regime: Which saves you more?

Conclusion

Implementation of GST on furniture, and its reform under GST 2.0, effective September 22, 2025, has significantly altered the taxation landscape for India's furniture industry. It brought simplification and transparency, and it has now created a more uniform pricing structure across most furniture categories.

The ability to claim input tax credit has been a significant advantage for manufacturers, allowing them to offset some of their tax burden. The decrease in tax rates on raw materials such as plywood from 28% to 18% has reduced manufacturing costs and made wooden furniture cheaper for consumers.

Understanding the nuances of GST on furniture items and using input tax credits will be vital for success in the post-GST era. Knowing the furniture GST rate will help consumers make informed purchase decisions, manage their budgets effectively, and claim input tax credits where applicable. GST 2.0 has introduced a streamlined two-slab system (5% for green materials and 18% for most finished products), simplifying the tax system and making it easier to comply with.

Frequently Asked Questions

Which type of furniture gets a 5% GST rate?

Finished bamboo, cane and rattan furniture is taxed at 18% GST; concessional rates apply only to raw or unprocessed materials rate under GST 2.0 reforms.

What is the general GST rate on most finished furniture?

The majority of finished furniture produced from wood, metal, plastic, or glass is levied uniformly at 18% GST under GST 2.0 reforms as of 22nd September 2025.

How is GST applied to modular furniture?

All completed modular furniture is taxed uniformly at 18% GST under GST 2.0, irrespective of whether it is being produced using wood, metal, plastic, or glass.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

Tax and GST regulations are subject to change. The information in this article is based on applicable laws, rules, notifications, and interpretations in force as on the date of publication and may change due to amendments, judicial decisions, or regulatory updates.