New 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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New GST Rate on Carpets & Mats in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common carpet and mat categories (no compensation cess).
New GST Rate on Carpets
| Carpet or Rug Type | HSN Code | New GST Rate |
|---|---|---|
| Handmade wool/silk carpets | 5701 | 5% |
| Machine-made synthetic carpets | 5702 | 5% |
| Tufted or woven carpets | 5703 | 5% |
| Mats and floor coverings (coir/jute/cotton) | 5705 | 5% |
| Plastic or PVC mats | 3924 | 18% |
Note: Lines that were at 12% move to 5% under the rationalised slabs; categories already at 18% remain at 18%.
New GST on Mats
| Mat Type | New GST Rate | HSN Code |
|---|---|---|
| Cotton/jute/coir mats | 5% | 5705 |
| Plastic floor mats | 18% | 3924 |
| Rubber door mats | 18% | 4016 |
New GST on Carpets in India: Hand-Made vs Machine-Made
| Feature | Handmade Carpet | Machine-Made Carpet |
|---|---|---|
| New GST Rate | 5% | 5% |
| Buyer base | Luxury, export | Mass market |
| ITC for businesses | ✅ Yes | ✅ Yes |
Reminder: 12% slab is discontinued; affected items are mapped to 5%. Only sin/luxury goods use the special 40% slab; not applicable here.
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
Old GST Rate on Carpets in India
(Old GST Rates – Applicable Until 21st September)
| 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% |
Reminder: 12% slab is discontinued; affected items are mapped to 5%. Only sin/luxury goods use the special 40% slab; not applicable here.
Old 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 |
Reminder: 12% slab is discontinued; affected items are mapped to 5%. Only sin/luxury goods use the special 40% slab; not applicable here.
Old 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 |
Reminder: 12% slab is discontinued; affected items are mapped to 5%. Only sin/luxury goods use the special 40% slab; not applicable here.
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.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
-
What is the gst on carpets in india?It varies:
- 5% for handmade wool/silk carpets
- 12% for machine-made textile carpets
- 18% for synthetic or plastic mats
-
What is the gst on mats made of plastic or rubber?18% GST applies to plastic or rubber mats under HSN code 3924 or 4016.
-
Are natural fiber rugs like jute or coir mats taxed lower?Yes. Coir, jute, or cotton mats usually attract 5% or 12% GST, depending on classification.
-
Can carpet sellers claim Input Tax Credit?Yes, if the sale is taxable and proper GST invoices are issued.
-
What is the gst rate on carpets used in hotels or offices?It depends on the type:
- Machine-made carpet = 12%
- PVC mats = 18%
