GST on Furniture – Complete Guide to Rates & Tax Impact

Imagine this: Priya walks into a trendy furniture store in Mumbai, eyes shining at a sleek walnut-wood study desk priced at ₹25,000. She is already picturing her morning chai and laptop perched on it. But at the counter — bam! The bill reads ₹29,500.

“Wait, where did that extra ₹4,500 come from?” she gasps.
The shopkeeper, sipping his own chai, casually replies, “Madam ji, ye toh GST on Furniture ka jadoo hai!”

This scene is all too common across India. You think you are buying a ₹15,000 centre table, but suddenly you are shelling out ₹17,700. That is an extra 18%— no small deal when your home makeover is already breaking your bank!

Welcome to the world of GST on Furniture, where style meets tax and elegance meets economics. Whether it is a comfy bean bag in Bengaluru or a majestic wooden cot in Coimbatore, everything you buy for your space now comes with an extra line on the bill — Goods and Services Tax.

“Sofa ho ya stool, GST ka hai alag hi rule!”

This blog is your smart guide to understanding GST on Furniture — complete with examples, tables, numbers, and a whole lot of fun. Get ready to decode what you are really paying for — because furniture is no longer just about comfort, it is about calculations too.

GST on Furniture – A Quick Glance at Price and Tax Rate

Furniture is no longer taxed under the earlier indirect system. Under the unified tax regime, almost all furniture products attract a fixed tax slab. Below is a precise breakdown of categories, price estimates, and the current GST on Furniture:

Note: Prices are indicative and may vary based on brand, location, and customisation.

Now let us do a quick calculation to understand how it pinches the pocket:

If a modular kitchen setup is worth ₹70,000, the GST on Furniture would be:

GST = ₹70,000 × 18% = ₹12,600
 Final Price = ₹70,000 + ₹12,600 = ₹82,600

Clearly, knowing this helps both buyers and businesses budget better

Read More – GST on Plywood

HSN Codes for Furniture – Harmonising Classification with GST

Furniture comes in diverse shapes and materials. To standardise tax treatment, each type is assigned a Harmonised System of Nomenclature (HSN) code under GST law.

Want to confirm HSN codes? Visit the official GST portal for details.

“HSN code yaad rakho bhai, warna bill mein milegi chot khaayi!”

Types of Furniture and Their GST Applicability

Not every piece of furniture is taxed the same way. Let us simplify this with another table:

The rates usually differ only when the use is non-commercial or heritage-based.

Impact of GST on the Furniture Industry with Examples

The introduction of the Goods and Services Tax brought both ease and challenges to the Indian furniture ecosystem.

Example 1 – A Local Manufacturer’s Reality

Kolkata-based Pooja Furniture used to buy raw wood at ₹1,00,000 and pay Value Added Tax separately. Now under GST, they pay:

• Input GST on wood (18%): ₹18,000
   
• They manufacture a ₹2,00,000 sofa
   
• Output GST (18%): ₹36,000
   

Since they paid input tax, they can claim it back (more on that in the next section). This simplified their accounting but increased working capital stress due to upfront tax.

Example 2 – Retail Buyer’s Woes

A buyer in Bengaluru visits an online store and chooses:

• 1 Bed – ₹35,000
   
• 1 Study Table – ₹10,000
   
• Total Pre-GST: ₹45,000
   
• GST (18%): ₹8,100
   
• Final Bill: ₹53,100
   

Buyers like him face a near 20% increase in cost due to tax. So, budget planning is now inseparable from GST maths.

“Pehle tha furniture ka asli daam, ab milta hai GST ke saath dham!”

Also Read - GST on Building Materials

Input Tax Credit (ITC) on Furniture

Businesses often ask: Can we claim tax back on furniture purchases?

Yes – if the furniture is used for business purposes only.

For example, if a company buys conference tables worth ₹1,00,000 plus ₹18,000 GST:

• It can claim ₹18,000 as Input Tax Credit, reducing its overall tax burden.
   
• But if the director buys furniture for his home using the company’s name, no ITC is allowed.
   

Here is a table to make this clearer:
 

Want to check your eligibility? Use the GSTN ITC Tool.

Conclusion: GST on Furniture is Not Just a Tax, It is a Trend

As India’s urban population grows and lifestyle spending increases, furniture is no longer an afterthought. The role of GST on Furniture is pivotal in this journey; from sourcing to retail, from business budgeting to household planning.

So next time you spot a lovely swing chair online for ₹10,000, mentally add ₹1,800 more. Welcome to the world of transparent taxation, where even your footrest pays tax.

“Sofa, table ya chair ho classic, GST on Furniture bana diya pricing ko drastic!”

To stay updated on future changes in GST slabs, always visit the official Central Board of Indirect Taxes and Customs website.

Frequently Asked Questions (FAQs) Related to GST on Furniture

Q1. Is GST on Furniture the same for online and offline purchases?
Yes, the tax rate is uniform. Whether purchased via an e-commerce platform or a physical store, GST on Furniture remains 18% for most items.

Q2. Are custom-made furniture items also taxed under GST?
Yes, custom-built furniture is taxed at the same rates based on the type and material used.

Q3. Can a freelance designer claim Input Tax Credit on office furniture?
Only if the designer is a registered taxpayer under the GST regime and uses the furniture solely for business purposes.

Q4. What happens if I resell used furniture?
Second-hand goods attract marginal GST under certain conditions. If you are not registered or make no profit margin, GST may not apply.

Q5. Does furniture sold with electronics (like recliners with speakers) attract composite tax?
In combo cases, the dominant product usually dictates the tax. But it is advisable to treat each item separately for billing clarity.
 

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