Most furniture items in India, including wooden, metal, plastic, and upholstered furniture, attract a standard GST rate of 18%. This 18% rate applies to items under HSN code 9403, which covers household, office, and modular furniture. Some specific exceptions and related items have different rates.
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.
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.
Cost Increase Due to Higher GST Rates
The 28% GST on high-end furniture like prefabricated units and certain luxury items increases the cost of production, which ultimately affects the retail price. Furniture manufacturers and retailers often pass on the higher tax burden to consumers.
Taxes on aerated drinks, tobacco and luxury goods will now come under the 28 percent tax bracket under GST, so it will get costlier.
The key categories of goods and services included under the special 40% GST slab are, Tobacco and related intoxicants as sin goods (e.g., cigarettes, bidis, pan masala, caffeinated drinks) Drinks with high sugar content and caffeinated.
How to calculate GST?
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.
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.
The GST/HST break includes certain qualifying goods, such as:
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.
Furniture under HSN 9403 is taxed at GST rates of either 12% or 18%, depending on the product type and use case as detailed below. Earlier, 28% was applicable to many items, but GST reforms have rationalized rates for better compliance and affordability.
GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1. To work out the GST component, divide the GST inclusive cost by 11.
Let us say you operate a small furniture workshop. You would pay Goods and Services Tax (GST) when you purchase wood and fittings to manufacture the table.
The rate of GST on bed mattresses is 18% and you can claim this 18% GST if you have any Firm/Company or you are an employee of companies who pay on your behalf. Companies like ONGC, SBI, Indian Oil Corporation, Central Bank of India, etc.
What is the GST rate on furniture? 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.
Frequently Asked Questions. How much GST is applicable on wooden furniture? 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.
For example, if your original price is $100, multiply this by 1.15 to equal $115. Work out your GST-inclusive price by multiplying your original price by 1.15. For example, if your original price is $100, multiply this by 1.15 to equal $115.
How to Claim GST Refund Easily
5% GST Slab: Packaged food, footwear, medicines, small household items, and other commonly used products. 18% GST Slab: Restaurant services, telecom services, financial services, electronics like TVs, washing machines, laptops and daily-use appliances, motorcycles below 350cc, and cars below 1200cc.
Example
Calculation: Base Price: ₹50,000. GST Amount: ₹50,000 × 18% = ₹9,000. Total Amount: ₹50,000 + ₹9,000 = ₹59,000.