{"id":12685,"date":"2024-09-20T15:24:44","date_gmt":"2024-09-20T09:54:44","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12685"},"modified":"2026-02-04T22:35:38","modified_gmt":"2026-02-04T17:05:38","slug":"gst-rate-on-furniture","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/","title":{"rendered":"GST on Furniture: Wooden Chairs, Tables, &#038; Plywood GST Rates"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The implementation of <a href=\"https:\/\/razorpay.com\/learn\/gst-goods-and-services-tax-guide\/\">GST<\/a> on May 18, 2017, significantly impacted the USD 28.38 billion Indian furniture industry. While some furniture types have seen increased costs, the Input Tax Credit (ITC) helps manufacturers offset these expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article reviews the GST on furniture for various furniture types, exploring the pros and cons of GST and its implications for the industry, offering manufacturers insights to assess its impact on their businesses.<\/span><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-[20px] text-message flex w-full flex-col items-end gap-2 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"18cbf5c4-99b8-4e11-a11b-810d7bd05e2c\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea436e409ae\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea436e409ae\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#GST-Rates-on-Furnitures-in-2026\" >GST Rates on Furnitures in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#GST-Rates-on-Wooden-Furniture\" >GST Rates on Wooden Furniture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#GST-on-Steel-and-Metal-Furniture\" >GST on Steel and Metal Furniture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#GST-on-Plastic-Furniture\" >GST on Plastic Furniture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#Exemptions-and-Concessions-on-Furniture-Under-GST\" >Exemptions and Concessions on Furniture Under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#How-GST-Changed-Furniture-Taxation-A-Pre-and-Post-GST-Analysis\" >How GST Changed Furniture Taxation: A Pre and Post-GST Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#Impact-of-GST-Rate-on-Furniture-Industry\" >Impact of GST Rate on Furniture Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#Advantages-Of-New-GST-Structure-For-Furniture\" >Advantages Of New GST Structure For Furniture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/gst-rate-on-furniture\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"GST-Rates-on-Furnitures-in-2026\"><\/span><b>GST Rates on Furnitures in 2026<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">From September 2025, wooden, plastic, steel, and all other types of furniture are uniformly taxed at 18% GST. These rates vary based on the material used, making it essential for manufacturers and consumers to understand their implications for pricing and purchasing decisions. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let us understand the <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST rates<\/a> on furnitures in detail: <\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Material<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Popular Furniture Choice<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Impact<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Wooden Furniture<\/span><\/td>\n<td><b><span style=\"font-weight: 400;\">18%<\/span><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Including Plywood, MDF, teak, etc.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Earlier slabs of 12% for wood and 28% for plywood are no longer applicable. All wooden furniture is taxed uniformly.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Metal Furniture\u00a0<\/span><\/td>\n<td><b><span style=\"font-weight: 400;\">18<\/span>%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Steel, iron, aluminium, etc.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No change; remains under the standard furniture rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Plastic Furniture<\/span><\/td>\n<td><b><span style=\"font-weight: 400;\">18<\/span>%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">PVC, polypropylene, etc.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Earlier 12% slab removed; now taxed at the same standard furniture rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Upholstery Furniture\u00a0<\/span><\/td>\n<td><b><span style=\"font-weight: 400;\">18<\/span>%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Leather, fabric, etc.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Remains aligned with the standard furniture classification<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Glass Furniture<\/span><\/td>\n<td><b><span style=\"font-weight: 400;\">18<\/span>%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Toughened, tempered, safety glass, etc<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Earlier 28% slab has been rationalized down to the standard rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"GST-Rates-on-Wooden-Furniture\"><\/span><b>GST Rates on Wooden Furniture<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Most wooden furniture items, such as chairs, tables, wardrobes, and beds, are subject to a standard GST rate of 18%. This rate also applies to a variety of wooden products, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wood flour and wood wool.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden sticks used for umbrellas, walking sticks, and tool handles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden sleepers for railways or tramways.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coarsely trimmed wooden sticks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden pallet collars.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Staves and other coopers&#8217; items like barrels and casks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden jewellery boxes and cutlery cases.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Kitchenware, utensils, and tableware made of wood.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden statuettes and decorative items.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Packaging barrels, cases, crates, and containers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Items such as pencil slats, match splints, and marine equipment like oars and paddles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden items used in textile machinery, including clothes hangers and bobbins.<\/span><\/li>\n<\/ul>\n<h3><b>Applicable GST Rates for Different Kinds of Wooden Furniture<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"> Firewood or wood charcoal \u2192 <strong>NIL (no GST)<\/strong><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wood chips, sawdust, waste wood, wooden boxes, crates, drums, walking sticks, pulp, bamboo pulp \u2192 <strong>Earlier 5%, now classified under the standard rate of 18% GST Rate<\/strong>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wooden furniture items (chairs, tables, wardrobes, beds, tableware, kitchenware, etc.) \u2192 <strong>18% GST Rate<\/strong>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wood tar, vegetable pitch, naptha, treated lyes, lignin sulfonate \u2192 <strong>18% GST Rate<\/strong>.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fibre wood, plywood, laminated wood, engineered wood \u2192 <strong>18% GST Rate<\/strong>.<\/span><\/li>\n<\/ul>\n<h3><b>HSN Code For Wooden Furniture<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The HSN code for wooden furniture is <\/span><b>9403<\/b><span style=\"font-weight: 400;\">. This code helps classify different types of wooden furniture for accurate GST calculation.<\/span><\/p>\n<h2 class=\"\" data-sourcepos=\"1:1-1:35\"><span class=\"ez-toc-section\" id=\"GST-on-Steel-and-Metal-Furniture\"><\/span>GST on Steel and Metal Furniture<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"3:1-3:97\">Steel and metal furniture generally fall under the <strong>18% GST slab.<\/strong> This includes items such as:<\/p>\n<ul data-sourcepos=\"5:1-10:0\">\n<li data-sourcepos=\"5:1-5:8\">Chairs<\/li>\n<li data-sourcepos=\"6:1-6:8\">Tables<\/li>\n<li data-sourcepos=\"7:1-7:10\">Cabinets<\/li>\n<li data-sourcepos=\"8:1-8:10\">Almirahs<\/li>\n<li data-sourcepos=\"9:1-10:0\">Office furniture<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, be careful to note that specialized metal equipment or custom-made furniture may fall under a different tax slab. Apart from that, the tax rate may vary if the furniture is made of more than one kind of base material. For example, a glass table with metal legs may attract a higher GST due to the presence of glass (taxed @ 28%) in it.\u00a0<\/span><\/p>\n<h3 data-sourcepos=\"13:1-13:51\">HSN Code for Metal Furniture<\/h3>\n<p data-sourcepos=\"13:1-13:51\"><strong>HSN code<\/strong> for metal furniture is typically 94031010.<\/p>\n<h2 class=\"\" data-sourcepos=\"1:1-1:27\"><span class=\"ez-toc-section\" id=\"GST-on-Plastic-Furniture\"><\/span>GST on Plastic Furniture<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"3:1-3:177\"><strong><span style=\"font-weight: 400;\">Plastic furniture such as plastic chairs, tables generally attracts an 18% GST rate<\/span>.<\/strong> This covers a wide range of plastic furniture items, including chairs, tables, storage units, and other household items.<\/p>\n<p data-sourcepos=\"13:1-13:51\"><span style=\"font-weight: 400;\">However, keep in mind that the GST rate on furniture made of plastic is subject to change if the furniture is custom-made or has any upholstery (taxed at 18%). Moreover, the tax rate also comes down to the purpose the furniture is used for.<\/span><\/p>\n<h3 data-sourcepos=\"13:1-13:51\">HSN Code for Plastic Furniture<\/h3>\n<p><strong>HSN code<\/strong> for plastic furniture is typically 940370.<\/p>\n<h2 class=\"\" data-sourcepos=\"1:1-1:52\"><span class=\"ez-toc-section\" id=\"Exemptions-and-Concessions-on-Furniture-Under-GST\"><\/span>Exemptions and Concessions on Furniture Under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"3:1-3:123\">While most furniture items are subject to standard GST rates, certain categories may qualify for exemptions or concessions.<\/p>\n<h3 class=\"\" data-sourcepos=\"5:1-5:18\">Used Furniture<\/h3>\n<ul data-sourcepos=\"6:1-8:0\">\n<li data-sourcepos=\"6:1-6:156\"><strong>Potential exemption:<\/strong> Used or second-hand furniture might be exempt from GST or subject to a reduced rate, depending on its condition and resale value.<\/li>\n<li data-sourcepos=\"7:1-8:0\"><strong>State-specific rules:<\/strong> The tax treatment of used furniture can vary across different Indian states.<\/li>\n<\/ul>\n<h3 class=\"\" data-sourcepos=\"9:1-9:21\">Furniture Exports<\/h3>\n<ul data-sourcepos=\"10:1-10:135\">\n<li data-sourcepos=\"10:1-10:135\"><strong>Zero-rated supply:<\/strong> Furniture exported from India is generally considered a zero-rated supply, meaning no GST is levied. Exporters can claim a refund of input tax credits paid on inputs used in the production of exported furniture.<\/li>\n<\/ul>\n<h3 class=\"\" data-sourcepos=\"12:1-12:37\">Government Schemes and Incentives<\/h3>\n<ul data-sourcepos=\"13:1-15:0\">\n<li data-sourcepos=\"13:1-13:191\"><strong>Small-scale manufacturers:<\/strong> Certain government schemes might offer tax incentives or subsidies to small-scale furniture manufacturers, indirectly impacting the overall cost of furniture.<\/li>\n<li data-sourcepos=\"14:1-15:0\"><strong>Custom duty concessions:<\/strong> Importers of raw materials used in furniture manufacturing may benefit from customs duty concessions, which can reduce the final cost of the product.<\/li>\n<\/ul>\n<h2 class=\"\" data-sourcepos=\"1:1-1:47\"><span class=\"ez-toc-section\" id=\"How-GST-Changed-Furniture-Taxation-A-Pre-and-Post-GST-Analysis\"><\/span>How GST Changed Furniture Taxation: A Pre and Post-GST Analysis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"5:1-5:3\">The introduction of GST has significantly reshaped the taxation landscape for the furniture industry.<\/p>\n<h3 data-sourcepos=\"7:1-7:16\">Pre-GST Era Tax on Furniture<\/h3>\n<p data-sourcepos=\"8:1-8:56\">Before the implementation of GST, the furniture industry was primarily governed by the Value Added Tax (VAT) regime. This resulted in a complex tax structure with varying rates across different states in India. Manufacturers and retailers often faced challenges due to cascading effects of taxes, leading to higher prices for consumers.<\/p>\n<h4 class=\"\" data-sourcepos=\"9:1-9:36\">Example of Pre-GST Scenario (hypothetical)<\/h4>\n<ul data-sourcepos=\"10:1-10:26\">\n<li data-sourcepos=\"10:1-10:26\"><strong>Selling price:<\/strong> Rs. 5,000<\/li>\n<li data-sourcepos=\"11:1-11:52\"><strong>VAT on selling price (assuming 12.5% VAT):<\/strong> Rs. 625<\/li>\n<li data-sourcepos=\"12:1-12:62\"><strong>Input VAT credit on raw materials (assuming 5% VAT):<\/strong> Rs. 100<\/li>\n<li data-sourcepos=\"13:1-14:0\"><strong>Net tax liability:<\/strong> Rs. 525<\/li>\n<\/ul>\n<h3 data-sourcepos=\"10:1-10:17\">Post-GST Era Tax on Furniture<\/h3>\n<p data-sourcepos=\"11:1-11:51\">The introduction of GST brought about the following changes:<\/p>\n<ul data-sourcepos=\"13:1-16:0\">\n<li data-sourcepos=\"13:1-13:133\"><strong>Uniform tax rate:<\/strong> <span style=\"font-weight: 400;\">From September 2025, the entire furniture sector falls under a single GST slab of 18%, removing the previous multiple slab system (12%, 18%, 28%)<\/span>.<\/li>\n<li data-sourcepos=\"14:1-14:137\"><strong>Input Tax Credit (ITC):<\/strong> Manufacturers and dealers can now claim credit for taxes paid on inputs, leading to potential cost savings.<\/li>\n<li data-sourcepos=\"15:1-16:0\"><strong>Increased compliance burden:<\/strong> While GST has simplified the tax structure, it has also increased compliance requirements for businesses.<\/li>\n<\/ul>\n<h4 class=\"\" data-sourcepos=\"9:1-9:36\">Example of Post-GST Scenario (hypothetical)<\/h4>\n<ul data-sourcepos=\"16:1-20:0\">\n<li data-sourcepos=\"16:1-16:26\"><strong>Selling price:<\/strong> Rs. 5,000<\/li>\n<li data-sourcepos=\"17:1-17:37\"><strong>GST on selling price (12%):<\/strong> Rs. 600<\/li>\n<li data-sourcepos=\"18:1-18:77\"><strong>Input Tax Credit (ITC) on raw materials (assuming 18% GST on wood):<\/strong> Rs. 360<\/li>\n<li data-sourcepos=\"19:1-20:0\"><strong>Net GST liability:<\/strong> Rs. 240<\/li>\n<\/ul>\n<p data-sourcepos=\"21:1-21:158\">As evident from the example, the GST regime introduced a higher tax rate but also allowed for input tax credit, which can partially offset the tax burden.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact-of-GST-Rate-on-Furniture-Industry\"><\/span><b>Impact of GST Rate on Furniture Industry<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The implementation of GST on furniture items has brought both challenges and benefits to the furniture industry:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased Transparency:<\/b><span style=\"font-weight: 400;\"> GST has streamlined the tax structure, bringing transparency to pricing and reducing the complexity of tax compliance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Implications: <\/b><span style=\"font-weight: 400;\">The varying GST rates for different types of furniture affect the final price, with metal furniture experiencing higher cost increases due to the 18% rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Dynamics:<\/b><span style=\"font-weight: 400;\"> The standardized tax rates have made it easier for businesses to operate across state lines, fostering a more unified national market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Competitive Pricing: <\/b><span style=\"font-weight: 400;\">The elimination of multiple cascading taxes has led to more competitive pricing and has potentially lowered the overall cost burden on manufacturers.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Advantages-Of-New-GST-Structure-For-Furniture\"><\/span><b>Advantages Of New GST Structure For Furniture<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that we\u2019ve discussed the overall impact of GST rate on furniture industry, it\u2019s time to go over the advantages of the imposition of GST for furniture:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Simplified Transaction Values:<\/b><span style=\"font-weight: 400;\"> The GST system has simplified the process of determining transaction values by having a uniform tax rate across states.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Elimination of Hidden Taxes:<\/b><span style=\"font-weight: 400;\"> With GST, hidden taxes such as excise duty, VAT, and others have been eliminated, leading to clearer pricing and easier GST calculation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cheaper Manufacturing Items:<\/b><span style=\"font-weight: 400;\"> Manufacturers can now claim input tax credits on raw materials, reducing the overall cost of production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Creditable Taxes:<\/b><span style=\"font-weight: 400;\"> Businesses can claim credits for taxes paid on inputs, reducing the effective tax rate and promoting more business investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduction in Fraud and Corruption: <\/b><span style=\"font-weight: 400;\">The digital nature of GST has reduced opportunities for tax evasion and corruption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Simplified Business Expansion:<\/b><span style=\"font-weight: 400;\"> GST has simplified the process for businesses to expand across state borders, encouraging growth and scale.<\/span><\/li>\n<\/ul>\n<p data-sourcepos=\"21:1-21:158\"><strong><em>Related Reads:<\/em><\/strong><\/p>\n<ul>\n<li data-sourcepos=\"21:1-21:158\"><a href=\"https:\/\/razorpay.com\/learn\/gst-on-stationery\/\"><strong><em>GST on Stationary<\/em><\/strong><\/a><\/li>\n<li data-sourcepos=\"21:1-21:158\"><a href=\"https:\/\/razorpay.com\/learn\/gst-on-education\/\"><strong><em>GST on Education Services<\/em><\/strong><\/a><\/li>\n<li data-sourcepos=\"21:1-21:158\"><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/\">GST on Clothes<\/a><\/strong><\/em><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>Q1. What are GST rate slabs: NIL, 5%, 12%, 18%, and 28%?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">GST rate slabs refer to the different categories of tax rates that goods and services are taxed under the GST regime in India. These slabs are NIL or tax-exempt under <a href=\"https:\/\/razorpay.com\/learn\/gst-exemption\/\">GST exemption<\/a> (0%), 5%, 12%, 18%, and 28%, and are determined based on the type of product or service.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h3><b>Q2. Is GST applicable on used furniture?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Used or second-hand furniture might be exempt from GST or subject to a reduced rate, depending on its condition and resale value.<\/span><\/p>\n<h3><b>Q3. What is the GST rate for rental furniture?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The GST rate for rental furniture generally falls under the 18% slab as it is considered a service.\u00a0<\/span><\/p>\n<h3><b>Q4. Can we claim GST on office furniture?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, businesses can claim Input Tax Credit (ITC) on office furniture as long as it is used for business purposes.\u00a0<\/span><\/p>\n<h3><b>Q5. Is ITC allowed on furniture?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0Yes, ITC is allowed on furniture purchased for business purposes. This allows businesses to reduce their overall tax liability.\u00a0<\/span><\/p>\n<h3><b>Q6. How is GST applied to modular furniture?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0Modular furniture is typically taxed at an 18% GST rate. However, the rate may vary if the furniture includes materials that fall under different tax slabs.\u00a0<\/span><\/p>\n<h3><b>Q7. How does GST impact the cost of furniture for consumers?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0GST impacts the cost of furniture for consumers by standardizing the tax rate across different types of furniture. While some furniture may see a cost increase due to higher tax rates, the overall transparency and ability to claim ITC can help manufacturers offset these increases.<\/span><\/p>\n<h3><b>Q8. What is the GST rate on custom-made furniture?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Custom-made furniture may attract different GST rates based on the materials used. Typically, it falls under the 18% GST rate, but if it includes materials like glass (taxed at 28%), the overall GST rate may be higher.<\/span><\/p>\n<h3>Q9. What is the GST on plastic chairs?<\/h3>\n<p>GST on plastic chairs is 18%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The implementation of GST on May 18, 2017, significantly impacted the USD 28.38 billion Indian furniture industry. While some furniture types have seen increased costs, the Input Tax Credit (ITC) helps manufacturers offset these expenses. This article reviews the GST on furniture for various furniture types, exploring the pros and cons of GST and its<\/p>\n","protected":false},"author":151156618,"featured_media":13711,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3947],"class_list":{"0":"post-12685","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-rate-on-furniture"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156618"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12685"}],"version-history":[{"count":23,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12685\/revisions"}],"predecessor-version":[{"id":18781,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12685\/revisions\/18781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13711"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}