---
title: "Wood New GST Rate 2026: 5% Rate on Timber, Wooden Furniture"
description: "New GST rate on wood in 2026 is 5% on timber, plywood and wooden furniture products. Stay GST-compliant with Busy and apply the correct rate automatically."
canonical: "https://busy.in/gst-rates/wood/"
author: "Hitesh Aggarwal"
published: "2025-05-15T10:48:08.000Z"
category: "GST Rates"
---

-   The **wood gst rate** depends on the type of wood product and applicable HSN classification.
-   Raw wood, timber, plywood, particle board, flooring, and other processed wood products may have different GST rates based on their classification.
-   Businesses dealing in wood products should use the correct HSN code while invoicing to ensure proper GST compliance.
-   Wooden furniture and finished wood products are taxed according to their applicable GST classification.

# 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 hsn code and gst rate** across various categories.

## **New GST on Raw Wood and Timber in India**

Raw wood and timber products are taxable under GST, but the applicable rate depends on the exact product classification.

-   **Wood in the rough under HSN 4403 → 18% GST**
-   **Firewood or fuel wood under HSN 4401 → Nil-rated (0% GST)**

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 | **Nil (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%** |
| Continuously shaped wood / wooden flooring, other than specified bamboo flooring | 4409 | **18%** |
| Bamboo flooring | 4409 | **5%** |
| Particle board | 4410 | **18%**, except specified concessional categories |
| MDF / fibreboard | 4411 | **18%**, except specified concessional categories |
| Plywood | 4412 | **18%** |
| Wooden doors, windows and other builders’ joinery | 4418 | **18%**, except specified bamboo wood building joinery |
| Bamboo wood building joinery | 4418 | **5%** |

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 under HSN 4403 – 18% GST**
-   **Sawn teak wood under HSN 4407 – 18% GST**
-   **Processed teak products** such as flooring, doors, windows, panels, or furniture – generally **18% GST**, depending on the applicable HSN classification

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## 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% |

![Wood GST Rates in India Timber, Plywood & More](https://busy-client.busy.in/media/8%20(1).png)

## **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 **₹50,000**.

**GST = 50,000 × 18% = ₹9,000**
**Final Invoice Value = 50,000 + 9,000 = ₹59,000**

### **Example 2: Plywood at 18% GST**

Suppose the taxable value of plywood is **₹20,000**.

**GST = 20,000 × 18% = ₹3,600**
**Final Invoice Value = 20,000 + 3,600 = ₹23,600**

### **Example 3: Firewood at 0% GST**

Suppose the taxable value of firewood is **₹10,000**.

**GST = ₹0**
**Final Invoice Value = 10,000 + 0 = ₹10,000**

## **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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/)  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.

## About the author

**Hitesh Aggarwal**

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 and timber in India?

Raw wood, logs, and timber in the rough generally attract **18% GST** under **HSN 4403.**

### What is the GST on firewood?

Firewood or fuel wood generally attracts 0% GST.

### Is GST the same for all wood products?

No. Raw timber, firewood, processed wood, plywood, flooring, and furniture can fall under different HSN codes, so the GST rate depends on the product classification.

### What is the GST on plywood and MDF?

Plywood and MDF generally attract 18% GST.

### What is the GST on wooden furniture?

Wooden furniture generally attracts **18% GST**. Most furniture falls under HSN **9403**, while wooden chairs and other seats generally fall under HSN **9401**.

### Can businesses claim ITC on wood and timber purchases?

Generally, yes. Businesses making taxable outward supplies can usually claim input tax credit on eligible inward supplies, subject to the normal GST conditions and restrictions.

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