GST on Carpets and Rugs: Know the Current Tax Rate

Carpets and rugs are more than just floor coverings—they’re a blend of comfort, décor, and design. Whether you’re buying hand-woven rugs or machine-made carpets, GST is an essential part of the billing. In this blog, we’ll simplify the gst on carpets, rates by material and style, and what buyers and sellers should know.

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    How Are Carpets Classified Under GST?

    Under GST, carpets, rugs, and mats fall under HSN Chapter 57, which covers textile floor coverings. These include:

    • Woollen and silk carpets
    • Synthetic and nylon mats
    • Coir and jute doormats
    • Handmade or machine-made rugs

    GST Rate on Carpets in India

    Carpet or Rug Type HSN Code GST Rate
    Handmade wool/silk carpets 5701 5%
    Machine-made synthetic carpets 5702 12%
    Tufted or woven carpets 5703 12%
    Mats and floor coverings (coir/jute/cotton) 5705 5% or 12%
    Plastic or PVC mats 3924 18%

    GST on Mats

    Mat Type GST Rate HSN Code
    Cotton/jute/coir mats 5% or 12% 5705
    Plastic floor mats 18% 3924
    Rubber door mats 18% 4016

    GST on Carpets in India: Hand-Made vs Machine-Made

    Feature Handmade Carpet Machine-Made Carpet
    GST Rate 5% 12%
    Buyer base Luxury, export Mass market
    ITC for businesses ✅ Yes ✅ Yes

    Input Tax Credit for Carpet Businesses

    Retailers, manufacturers, and exporters of carpets can claim Input Tax Credit (ITC) on:

    • Yarn and raw materials
    • Looms, machinery, and tools
    • Packaging and transport
    • Warehousing and storage

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    GST Compliance Tips for Sellers

    • Use correct HSN codes based on carpet type
    • Clearly mention material (wool, nylon, plastic, etc.) in invoices
    • Apply 5%, 12%, or 18% GST accordingly
    • File monthly GST returns
    • Issue valid tax invoices to customers for ITC claims (if applicable)

    Understanding the gst on carpets helps you price products correctly, stay compliant, and budget accurately—whether you’re a buyer upgrading your home or a seller dealing in bulk textile floor coverings.

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