Yes, significant changes to GST rates on furniture are effective from September 22, 2025, following the 56th GST Council meeting, which reduced taxes on specific items to 5% while maintaining a general 18% rate for most furniture. Eco-friendly, bamboo, cane, and rattan furniture rates have been reduced to 5%.
FAQs. Q1. Is GST on wooden furniture still 18% in 2025? Yes, the GST on all wooden furniture items—including beds, sofas, dining sets, wardrobes, and storage units—remains at 18%, unchanged from previous years.
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.
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 on furniture varies by material—wood, metal, plastic, and bamboo—ranging from 5% to 28%. Most standard wooden and metal furniture items attract an 18% GST rate, while luxury items fall under 28%. HSN codes like 9403, 9404, 9405, and others determine GST classification for different furniture types.
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.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
What will be the new 2025 GST rate structure? GST 2.0 reform abolished the old tax structure (5%, 12%, 18% and 28%). The council introduced the new 2-slab structure of 5%, 18% and 40% for demerit.
Automobile sector reforms reduce GST from 28% to 18% on small cars, motorcycles (up to 350cc), buses, trucks, ambulances, and three-wheelers, while maintaining high rates for large luxury vehicles. Housing and infrastructure relief with GST on cement cut from 28% to 18%, easing construction costs.
Taxes on aerated drinks, tobacco and luxury goods will now come under the 28 percent tax bracket under GST, so it will get costlier.
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 HSN code for wooden furniture in the context of GST is 9403, and the applicable GST rate is typically 18%.
In simple words: A wooden bed, metal almirah, plastic chair, or glass dining table—all generally fall under 18% GST.
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.
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.
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
The new GST structure at a glance
India has moved from the earlier four-tier GST system (5%, 12%, 18%, 28%) to a simplified two-rate structure: 5% (Merit rate) – Essentials and mass-consumption goods. 18% (Standard rate) – Most other goods and services.
Here are several practical approaches you can adopt immediately to legally reduce the amount you owe each quarter.
GST is a federal tax applied across Canada at a rate of 5%. HST is a combined tax merging GST with PST, applied in certain provinces with varying rates. PST is a provincial tax administered separately by each province that imposes it.
List of exempted goods under GST in India:
Barring of GST Return on expiry of three years
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
Revised GST Rate (from Sept 22, 2025)
Furniture made of plastic, glass, stone, etc. Note: The previous 28% GST slab for high-end furniture materials such as glass and stone has been removed. These items are now taxed at the standard 18% rate, contributing to a more consistent and predictable pricing structure.
Most Processed Foods and Snacks at Just 5% GST
- Dairy & bakery: Butter, cheese, ghee, cream, condensed milk, yoghurt (packaged), and dairy spreads all move to 5%. Packaged breads (like loaves and buns) and bakery items (cakes, biscuits, crackers, cookies) are at 5%. In short, most bakery and dairy-based foods are 5%.