Wood New GST Rate: Timber, Plywood, and Other Products
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 gst rate across various categories.
New GST Rate on Raw Wood & Timber in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for raw wood and timber (no compensation cess).
New GST on Raw Wood and Timber
Raw and unprocessed wood is classified differently from fuel/firewood. Verify HSN before invoicing.
| Product | HSN Code | New GST Rate |
|---|---|---|
| Raw wood / logs / timber (wood in the rough) | 4403 | 18% |
| Firewood / fuel wood (in logs, billets, twigs, faggots, etc.) | 4401 | 0% |
Old GST on Raw Wood and Timber
(Old GST Rates – Applicable Until 21st September)
Raw and unprocessed wood is generally taxed at a lower rate to support the timber and forest-based industries.
| Product | HSN Code | GST Rate |
|---|---|---|
| Raw wood/logs/timber | 4403 | 5% |
| Firewood/wood in the rough | 4401 | 5% |
If you are purchasing wood in its natural or semi-processed form, the gst on wood is only 5%.
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GST on Processed Wood and Wood-Based Products
| Product | HSN Code | GST Rate |
|---|---|---|
| Plywood | 4412 | 18% |
| Particle board/MDF | 4410 | 18% |
| Wooden doors and windows | 4418 | 18% |
| Wooden flooring | 4409 | 18% |
This means any wood product that is shaped, coated, or combined with other materials will usually be taxed at 18% under GST.
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GST on Teak Wood
Teak wood gst rate depends on the form:
- Unprocessed teak logs: 5%
- Sawn, cut, or polished teak: 12% or 18% depending on treatment
So, if you are dealing in raw teak timber, you benefit from the lower 5% rate. But once it is processed into furniture or décor, it gets classified under higher tax brackets.
GST on Wooden Furniture
| Furniture Type | HSN Code | GST Rate |
|---|---|---|
| Wooden household furniture | 9403 | 18% |
| Office and modular furniture | 9403 | 18% |
So, the gst on wooden furniture—whether it’s a dining table, chair, or wardrobe—is a flat 18%, regardless of brand or size.
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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
Make sure:
- You are registered under GST
- You issue proper invoices with correct HSN codes
- The supplier has filed their GST returns
Conclusion
Understanding the correct wood 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.
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions
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What is the GST rate on raw wood?The wood GST rate for raw wood and logs is 5%.
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Is GST different for sawn or cut wood?Yes. Processed or sawn wood generally attracts 12% or 18% depending on the level of treatment.
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What is the GST rate on teak wood?Teak wood GST rate is 5% in raw form, and 12-18% if processed.
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How much GST is charged on wooden furniture?GST on wooden furniture is 18%, including for home, office, or modular units.
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Can furniture manufacturers claim Input Tax Credit?Yes. ITC can be claimed on all inputs used for producing and selling wood-based products.