Wood 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

    GST on Raw Wood and Timber

    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.

    Frequently Asked Questions (FAQs)

    • 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.
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