What is the GST rate on raw wood?

The wood GST rate for raw wood and logs is 5% .

Is GST different for sawn or cut wood?

Yes. Processed or sawn wood generally attracts 12% or 18% depending on the level of treatment.

What is the GST rate on teak wood?

Teak wood GST rate is 5% in raw form, and 12-18% if processed.

How much GST is charged on wooden furniture?

GST on wooden furniture is 18% , including for home, office, or modular units.

Can furniture manufacturers claim Input Tax Credit?

Yes. ITC can be claimed on all inputs used for producing and selling wood-based products.

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.

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GST Rates

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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Wood GST Rates in India Timber, Plywood & More

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.

Hitesh Aggarwal

Chartered Accountant

MRN No.: 529770

City: Delhi

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

What is the GST rate on raw wood?

The wood GST rate for raw wood and logs is 5%.
Is GST different for sawn or cut wood?

Yes. Processed or sawn wood generally attracts 12% or 18% depending on the level of treatment.
What is the GST rate on teak wood?

Teak wood GST rate is 5% in raw form, and 12-18% if processed.
How much GST is charged on wooden furniture?

GST on wooden furniture is 18%, including for home, office, or modular units.
Can furniture manufacturers claim Input Tax Credit?

Yes. ITC can be claimed on all inputs used for producing and selling wood-based products.

View all FAQs