Wood New GST Rate: Timber, Plywood, and Other Products
Quick Summary
- The GST rate for raw wood and timber in India will increase from 5% to 18% starting September 22, 2025.
- Firewood will continue to have a 0% GST rate, unchanged from its previous rate.
- Processed wood products like plywood, particle board, and wooden flooring will be taxed at 18% GST.
- Wooden furniture, both household and office types, will have a flat 18% GST rate.
Wood is a widely used material in construction, furniture, and interior design. From raw timber to polished furniture, different types of wood products are taxed differently under the Goods and Services Tax (GST). This blog simplifies everything you need to know about the wood hsn code and gst rate across various categories.
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New GST on Raw Wood and Timber in India
Raw wood and timber products are taxable under GST, but the rate depends on the exact product classification. Wood in the rough under HSN 4403 is taxed at 18% GST. Firewood or fuel wood under HSN 4401 is nil-rated. This means raw timber and firewood should not be treated as the same category for GST purposes.
GST on Raw Wood and Timber
| Product | HSN Code | Current GST Rate |
|---|---|---|
| Raw wood / logs / timber / wood in the rough | 4403 | 18% |
| Firewood / fuel wood | 4401 | 0% |
New GST on Processed Wood and Wood-Based Products
Once wood is processed into sawn wood, flooring, plywood, particle board, MDF, or builders’ joinery, the common GST rate is generally 18%.
| Product | HSN Code | GST Rate |
|---|---|---|
| Wood sawn or chipped | 4407 | 18% |
| Wooden flooring / continuously shaped wood | 4409 | 18% |
| Particle board | 4410 | 18% |
| MDF / fibreboard | 4411 | 18% |
| Plywood | 4412 | 18% |
| Wooden doors and windows / builders’ joinery | 4418 | 18% |
This means wood products that are cut, shaped, polished, coated, layered, or converted into boards and fittings usually fall under the 18% GST slab.
GST on Teak Wood
Teak wood GST depends on the form in which it is sold:
- Unprocessed teak logs/wood in the rough - 18% GST
- Sawn teak wood - generally 18% GST
- Processed teak products such as flooring, doors, windows, panels, or furniture - generally 18% GST
GST on Wooden Furniture
Wooden furniture generally falls under HSN 9403 and is subject to 18% GST. This includes common household, office, and modular furniture.
| Furniture Type | HSN Code | GST Rate |
|---|---|---|
| Wooden household furniture | 9403 | 18% |
| Office and modular furniture | 9403 | 18% |
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How to Calculate GST on Wood and Timber
GST on wood and timber products is calculated on the taxable value of the product and the applicable GST rate.
The formula when the price is before GST
GST Amount = Taxable Value × GST Rate
Final Invoice Value = Taxable Value + GST Amount
Example 1: Raw timber at 18% GST
Suppose the taxable value of raw timber is Rs 50,000.
GST = 50,000 × 18% = Rs 9,000
Final Invoice Value = 50,000 + 9,000 = Rs 59,000
Example 2: Plywood at 18% GST
Suppose the taxable value of plywood is Rs 20,000.
GST = 20,000 × 18% = Rs 3,600
Final Invoice Value = 20,000 + 3,600 = Rs 23,600
Example 3: Firewood at 0% GST
Suppose the taxable value of firewood is Rs 10,000.
GST = Rs 0
Final Invoice Value = 10,000 + 0 = Rs 10,000
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Input Tax Credit (ITC) on Wood Products
If you’re in the business of wood, furniture, or home interiors, you can claim Input Tax Credit on:
- Raw material purchases (timber, plywood)
- Transport and logistics costs
- Machinery and power tools used for manufacturing
Conclusion
Understanding the correct GST rate for timber, plywood, and furniture helps buyers and sellers price products accurately and remain GST-compliant. Whether you’re in construction, interiors, or retail, correct classification is key.
