GST generally sets a standard 18% tax rate on most furniture (wooden, metal, plastic) in 2025, providing price uniformity, while luxury items can attract up to 28%. It increases consumer costs for finished items but allows manufacturers to claim Input Tax Credit (ITC), which helps control overall price hikes.
The GST rate on furniture in India continues to remain 18% in 2025, unchanged from previous years. This rate applies across most categories, including all types of wooden furniture, modular kitchen accessories, lighting, carpets, office furniture, and home décor.
The 18% GST rate is now the new standard rate, applying to a wide range of goods and services. This includes many items that were previously taxed at a higher rate, such as mobile phones, air conditioners, refrigerators, televisions, and small cars.
GST rates directly influence the MRP of goods. A higher GST rate increases the MRP, while a lower rate can reduce the MRP. Businesses factor in these rates when setting final prices for consumers.
In general, sales of medical and dental supplies are either taxable or zero-rated. Sales of equipment and furniture are generally subject to GST/HST.
Buyers must pay the applicable GST rate on the value of the property, which is included in the purchase price. It is important for buyers to ensure that the seller has correctly calculated and included the GST in the purchase price. Failure to do so can lead to legal issues and financial penalties.
The new GST regime, GST 2.0, simplifies the tax structure by decreasing the slabs and changing rates. Significant changes have been implemented after the 56th GST Council meeting lowering the price of necessary goods, decreasing insurance premiums, and shift high-consumption goods into lower tax brackets.
GST is an attempt to remove the geographical barriers and create a single market that is open to all, to buy, sell, import, and export within the country. However, the impact of GST will not be uniform and will vary from one sector to another.
Article Body. Tax-inclusive pricing, also known as GST (Goods and Services Tax) or VAT (Value Added Tax), is a widely used method of calculating sales tax outside the US. Prices display on an after-tax basis, meaning clients are charged the "sticker" price with the sales tax already included.
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Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
Exemptions on Second-Hand Goods
For instance, the sale of used goods like personal household items or goods exchanged in trade is often exempted from GST. However, this exemption is subject to specific conditions, including the nature of the transaction and the type of goods involved.
The GST rate for most finished furniture items in India is now uniformly set at 18%, regardless of the material used. This includes furniture made from wood, metal, plastic, glass, and stone.
In India, when you sell used or second-hand goods, you don't always have to pay GST on the full sale value. Under the Margin Scheme, GST is charged only on the profit (margin), that is, the difference between the selling price and the purchase price.
Advantages: GST simplifies the tax structure, reduces tax evasion, and eliminates cascading taxes, promoting a unified market. It enhances transparency and compliance while boosting the economy. Disadvantages: Implementation challenges, initial compliance costs, and potential inflation in some sectors.
GST rate reductions reduce the cost of goods and services for consumers, leading to increased spending. For example, GST on essential clothing, footwear, daily food items, and educational materials has been cut significantly, making these items more affordable.
GST works by charging a unified tax on the supply of goods and services, collected at every stage of the supply chain. For instance, a manufacturer sells goods to a wholesaler for Rs. 1,00,000 with 18% GST. The wholesaler claims an input tax credit and passes it on to the retailer, who ultimately charges the consumer.
Since the value of taxable supply is the transaction value, GST is leviable on the value after deducting the discounts. However, not all discounts offered by the supplier to their customers are allowed as deductions from the value.
5% GST Slab: Common goods such as packaged food. 12% GST Slab: Processed food, fruit juices, frozen meat, butter, ghee, nuts, etc. 18% GST Slab: Most services like restaurants, telecom and banking, cosmetics, toiletries, hair oil, toothpaste, and capital goods.
Wooden furniture typically attracts an 18% GST rate under HSN Code 9403. However, eco-friendly wooden products such as bamboo, cane, or rattan furniture are taxed at a reduced rate of 5% after the 56th GST Council meeting in 2025.
Payments mandate a GST portal challan; online modes are preferred for amounts over ₹10,000, with 1% cash payment required if monthly turnover exceeds ₹50 lakh for some cases. Late fees apply at ₹200/day (₹100 CGST + ₹100 SGST), and interest at 18% p.a. on delays.
GST-Free Items:
GST Amount = (Selling Price x GST Rate) / 100. Here, the Selling Price is determined by adding the Cost Price and Profit Amount. The calculator factors in the Selling Price, representing the total value of goods or services subject to GST, and the GST rate, which fluctuates based on the nature of the goods or services.