Furniture GST Rate and HSN Code: Complete Guide for 2025 with Latest Updates

Major GST Reforms: What Changed for Furniture in 2025

The Indian government implemented the most significant GST overhaul since its introduction in 2017, consolidating the previous four-tier system (5%, 12%, 18%, 28%) into a simplified structure with two primary slabs: 5% and 18%, along with a special 40% rate for luxury and sin goods. This transformation has directly impacted furniture taxation, bringing much-needed clarity and consistency to the sector.

The GST Council approved the "Simple Tax" structure comprising a 5% merit rate for essentials, an 18% standard rate for most goods and services, and the new 40% de-merit slab for select luxury items. Most furniture items now fall under the 18% standard rate, providing uniformity across different material types and reducing classification disputes that previously plagued the industry.

Current Furniture GST Rates: Comprehensive Breakdown

Wooden Furniture GST Rate and HSN Code

Wooden furniture remains one of the most popular categories in Indian households and offices. Under the reformed GST structure, wooden furniture attracts an 18% GST rate across all subcategories. This includes dining tables, chairs, wardrobes, beds, and office furniture made of wood.

The primary HSN code for wooden furniture is 9403, which covers "Other furniture and parts thereof". However, depending on the specific type and usage, wooden furniture may also fall under other HSN codes:

The recent reforms have brought relief to certain wooden furniture categories. Wood marquetry, inlaid wood, jewellery cases, statuettes, and some wooden furniture items saw their GST rates reduced from 12% to 5%. Additionally, handicraft furniture made of bamboo, rattan, or cane now attracts only 5% GST, down from the previous 12%.

Steel and Metal Furniture GST Rate

Steel furniture and metal furniture are widely used in offices, industrial settings, and modern homes due to their durability and strength. The GST rate on steel furniture is 18%, maintaining consistency with other furniture categories under the reformed tax structure.

Metal furniture falls under HSN code 9403, similar to wooden furniture, but with specific subcategories:

The steel industry benefits from the new GST structure, as most steel products attract the uniform 18% GST rate. This includes steel bars, rods, pipes, and other raw materials used in furniture manufacturing, making the supply chain more streamlined and cost-effective for manufacturers.

Plastic Furniture GST Rate

Plastic furniture has gained significant popularity due to its affordability, durability, and weather resistance, especially for outdoor applications. Under the current GST regime, plastic furniture attracts an 18% GST rate.

Plastic furniture is classified under HSN code 9403 (specifically 940370 for furniture of plastics). This includes:

• Plastic chairs and tables
• Outdoor furniture sets
• Storage units made of plastic
• Garden furniture
• Children's plastic furniture

The 18% GST rate on plastic furniture applies uniformly regardless of the specific type or application, providing clarity for manufacturers and retailers in this segment.

GST on Furniture Sofa and Seating

Sofas and seating furniture represent a significant segment of the furniture market, encompassing everything from living room sofas to office chairs. GST on furniture sofa is 18%, falling under the standard rate category.

Seating furniture is primarily classified under HSN code 9401, which specifically covers "Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof". This includes:

• Sofas and sectional seating
• Recliners and lounge chairs
• Office chairs and ergonomic seating
• Dining chairs and bar stools
• Bean bags and casual seating

Upholstered furniture, including fabric sofas, attracts 18% GST, maintaining consistency with other furniture categories. The uniform rate has eliminated previous confusion regarding different materials and construction types.

HSN Code Classification: Essential Reference Guide

Understanding HSN codes is crucial for accurate GST calculation and compliance. The furniture industry primarily uses codes from Chapter 94 of the HSN classification system, which covers "Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like; prefabricated buildings".

Primary Furniture HSN Codes:

Specialized HSN Codes:

Impact of September 2025 GST Reforms on Furniture Industry

The 56th GST Council meeting's decisions have created substantial impact across the furniture sector. The reforms aimed at reducing compliance complexity, boosting domestic spending, and cushioning India's economy against external economic pressures.

Practical GST Calculation for Furniture Purchases

Understanding how to calculate GST on furniture purchases is essential for both consumers and businesses. The formula is straightforward:

Real-World Examples:

Input Tax Credit (ITC) Benefits for Businesses

Registered businesses can claim Input Tax Credit on furniture purchases used for business purposes. This significantly reduces the effective cost of furniture for commercial establishments, offices, and manufacturing units.

ITC Eligibility Criteria:

• Business Registration: The purchasing entity must be GST-registered
• Business Purpose: Furniture must be used for business operations, not personal use
• Proper Documentation: Valid GST invoices with correct HSN codes are mandatory
• Timely Filing: ITC must be claimed within the prescribed time limits

Special Considerations for Different Furniture Categories

Mattresses and Bedding

Mattresses, pillows, and bedding items fall under HSN code 9404 and attract 12% GST, which is lower than the standard furniture rate. This category includes:

• Spring mattresses and foam mattresses
• Pillows and cushions
• Bed sheets and covers (when sold with mattresses)
• Mattress protectors and toppers

Luxury and Modular Furniture

While most furniture now falls under the 18% category, certain high-end modular furniture systems and luxury items may still attract higher rates depending on their classification and components. The reforms have largely eliminated the 28% slab for most furniture items.

Lighting and Electrical Furniture

Lamps, lighting fittings, and illuminated furniture fall under HSN code 9405 with 18% GST. This includes:

• Table lamps and floor lamps
• Chandelier and ceiling fixtures
• LED furniture with integrated lighting
• Smart furniture with electrical components

Compliance and Documentation Requirements

For Manufacturers and Retailers:

• Accurate HSN Classification: Using correct HSN codes is crucial for proper GST calculation
• Invoice Requirements: GST invoices must include HSN codes, tax rates, and GSTIN details
• Return Filing: Regular GST returns with proper furniture classification
• Record Maintenance: Maintaining detailed records of raw materials and finished goods

For Consumers and Businesses:

• Invoice Verification: Ensure invoices contain correct HSN codes and GST calculations
• ITC Documentation: Maintain proper documentation for ITC claims
• Rate Verification: Verify applicable GST rates before making purchases
• Supplier Registration: Ensure suppliers are GST-registered for valid ITC claims

Future Outlook and Industry Impact

The GST reforms of 2025 represent a significant step toward tax simplification and economic growth. For the furniture industry, these changes bring:

Sector-Specific Implications

Home Furniture Market

The home furniture segment benefits significantly from the reforms, with 18% GST providing consistency across wooden, steel, and plastic furniture categories. This uniformity helps consumers make informed decisions without worrying about variable tax rates based on material choices.

Office Furniture Segment

Commercial furniture sees substantial benefits from ITC availability and uniform 18% rates. Businesses can now plan furniture purchases more effectively, knowing the exact tax implications and ITC benefits.

Export and Import Considerations

Furniture exports continue to benefit from zero-rated GST, while imports are subject to the same GST rates as domestic products plus applicable customs duties. The simplified structure makes international trade more transparent and competitive.

Regional and State-Specific Considerations

While GST is a central legislation, states participate in rate-setting through the GST Council. The furniture industry benefits from uniform rates across all states, eliminating the previous complex VAT structure that varied by state.

Technology and Digital Integration

The GST reforms emphasize digital integration with provisions for pre-filled returns and automated refunds. Furniture businesses can leverage technology for:

• Automated GST Calculations: ERP systems with updated rates
• E-invoicing Compliance: Mandatory for businesses above threshold limits
• Digital Record Keeping: Cloud-based GST compliance systems
• Real-time Rate Updates: Integration with government portals for rate changes

Environmental and Sustainability Impact

The reduced GST rate on bamboo, cane, and rattan furniture (5%) actively promotes sustainable furniture choices. This policy shift aligns with India's environmental goals and supports:

• Traditional craftsmanship and artisans
• Eco-friendly material usage
• Rural employment in bamboo and cane sectors
• Reduced carbon footprint in furniture manufacturing

Frequently Asked Questions (FAQs)

Quick Reference: Furniture GST Rates Summary