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Key Highlights
- Wood, wood items, and charcoal wood fall under Chapter 44 of the HSN code, including raw timber, plywood, fiberboard, etc.
- GST charges for wood and wood products vary from 5% to 18% based on product type and level of processing.
- A few classes, such as raw or fuel wood charcoal, are exempted or charged lower rates.
- Wood and wood products are commonly used for construction, furniture manufacturing, the paper industry, and decorative materials.
Wood and wood products are of extreme importance to numerous industries, such as construction, furniture, and handicrafts. Wood and wood articles need to be classified under the harmonised system of nomenclature (HSN) and the goods and services tax (GST) regime, which is essential for traders in timber, plywood, veneers, and wood-based products.Chapter 44 of the HSN code pertains to raw wood, processed wood, wood articles, and wood charcoal, all with varying wood GST rates . Traders, manufacturers, and exporters must understand the classifications to ensure compliance and effective tax management. Also Read - Know the types of GST returns in India
GST Rates and HSN Codes for Wood and Articles of Wood
The following table indicates the HSN code and wood GST rate under Chapter 44:
| HSN Codes | Export and Import HSN Codes | Products Description | Rates (%) |
| 4401 | 440111, 440112, 44011110, 44011190, 44011210, 44011290, 44011010, 44011090, 44012100, 44012200, 44013100, 44013900 | Fuel wood or firewood | NIL |
| 4401 | 440111, 440112, 44011110, 44011190, 44011210, 44011290, 44011010, 44011090, 44012100, 44012200, 44013100, 44013900 | Sawdust and wood waste and scrap, whether or not they are clumpedin logs, briquettes, pellets, or other suchform; wood in chips orpieces | 5% |
| 4403 | 440321, 440322, 440323, 440324, 440325, 440326, 44031100, 44031200, 44032110, 44032120, 44032190, 44032210, 44032220, 44032290, 44032310, 44032320, 44032390, 44032410, 44032420, 44032490, 44032510, 44032520, 44032590, 44032610, 44032620, 44032690, 44034100, 44039400, 44039500, 44039600, 44039700, 44039800, 44039921, 44031000, 44032010, 44032020, 44032090, 44034100, 44034910, 44034990, 44039100, 44039200, 44039911, 44039912, 44039913, 44039914, 44039915, 44039916, 44039917, 44039918, 44039919, 44039921, 44039922, 44039923, 44039924, 44039925, 44039926, 44039927, 44039928, 44039929 | Raw wood | 18% |
| 4404 | 44041000, 44042010, 44042020, 44042090 | Hoopwood, split poles, heaps, pickets, and stakes of wood that are pointed but not lengthwisesawed; hardwood sticks that are coarsely trimmed but not bent, turned, or otherwiseworkedand can beemployedto make umbrellas, tool handles, walking sticks, and othersuchobjects | 12% |
| 4405 | 44050000 | Wood flour and Wood wool | 12% |
| 4406 | 44061100, 44061200, 44069100, 44069200, 44061000, 44069000 | tramway sleepers (crossties) or Railway of wood | 12% |
| 4407 | 440719, 44071100, 44071200, 44071910, 44071990, 44072100, 44079700, 44071010, 44071020, 44071090, 44072100, 44072200, 44072500, 44072600, 44072700, 44072800, 44072910, 44072990, 44079100, 44079200, 44079300, 44079400, 44079500, 44079910, 44079920, 44079990 | Wood chipped or sawn | 18% |
| 4408 | 44081010, 44081020, 44081030, 44081090, 44083110, 44083120, 44083130, 44083190, 44083910, 44083920, 44083930, 44083990, 44089010, 44089020, 44089090 | Pieces of wood, whether or not whether planed, sanded, spliced, or end-jointed, not more than 6 mm [match splints] thick, for veneering (including sliced laminated wood), plywood, or other similar laminated wood and other wood, lengthwise sawn, sliced, or peeled | 12% |
| 4408 | 44081010, 44081020, 44081030, 44081090, 44083110, 44083120, 44083130, 44083190, 44083910, 44083920, 44083930, 44083990, 44089010, 44089020, 44089090 | Pieces of wood, whether or not whether planed, sanded, spliced, or end-jointed, not more than 6 mm [ beside match splints] thick, for veneering (including sliced laminated wood), plywood, or other similar laminated wood and other wood, lengthwise sawn, sliced, or peeled | 18% |
| 4409 | 44091010, 44091020, 44091090, 44092110, 44092910, 44092920, 44092990 | Regardlessofwhetherit is planned, sanded, or end-jointed, wood (includingfriezesandstripsfor parquet flooring,not assembled)whichisinconstantshaping(tongued, grooved, rebated, chamfered, v-jointed, beaded, molded, rounded, or the like)onany of its edges or faces [except forbamboo flooringwhichwas added on July 27, 2018] | 18% |
| 4409 | 4409 | Bamboo flooring | 12% |
| 4410 | 44101110, 44101120, 44101130, 44101190, 44101210, 44101290, 44101900, 44109010, 44109020, 44109030, 44109090 | Exceptforboardsdesignated, particle board, Oriented Strand Board (OSB), andsimilarboards (suchaswafer board)composedof wood or other ligneousproducts, whether or notagglomerated with resins or other organic bindingmaterials | 18% |
| 4411 | 44111200, 44111300, 44111400 | Exceptforboardsdesignated, fiber boardscomposedof wood or other ligneousproducts, whether or notbonded with resins or other organic ingredients | 18 |
| 4412 | 441234, 441239, 44123310, 44123320, 44123330, 44123340, 44123390, 44123410, 44123420, 44123430, 44123440, 44123490, 44123910, 44123920, 44123930, 44123940, 44123990, 44121000, 44121231, 44123110, 44123120, 44123130, 44123140, 44123150, 44123190, 44123210, 44123220, 44123230, 44123240, 44123290, 44123910, 44123920, 44123930, 44123940, 44123990, 44129400, 44129910, 44129920, 44129930, 44129940, 44129990 | Plywood, comparable laminated wood, and veneered panels | 18 |
| 4413 | 44130000 | Blocks, plates, strips, or profile shapes of densified wood | 18% |
| 4414 | 44140000 | Wooden frames for mirrors, paintings, photos, and other items | 18% |
| 4416 | Carved wood items, artware/decorative articles of wood (including inlay work, casks, barrels, and vats). | 12% | |
| 4417 | 44170000 | Wood-made tools, tool bodies, tool handles, broom or brush bodies and handles, boot or shoe lasts, and trees. | 12% |
| 4418 | 44187300, 44187400, 44187500, 44187900, 44189100, 44189900, 44181000, 44182010, 44182020, 44182090, 44184000, 44185000, 44186000, 44187100, 44187200, 44187900, 44189000 | Joinery and carpentry of wood by builders, including shingles, shakes, completed flooring panels, and cellular wood panels | 18% |
| 4419 | 441990, 44191100, 44191200, 44191900, 44199010, 44199020, 44199090, 44190010, 44190020 | Kitchenware and Tableware of wood | 12% |
| 4420 | 44201000, 44209010, 44209090 | Wood marquetry and inlaid wood; caskets and cases for jewelry or cutlery, and similar products made of wood; statuettes and other ornaments made of wood; and wooden furniture not falling under Chapter 94. | 12% |
| 4420 | Statuettes and other wood ornaments, wood marquetry and inlay, jewelry boxes, wood lathe and lacquer work. | 12% | |
| 4421 | 442191, 442199, 44219111, 44219119, 44219120, 44219130, 44219140, 44219150, 44219160, 44219170, 44219190, 44219911, 44219912, 44219913, 44219914, 44219919, 44219920, 44219930, 44219940, 44219950, 44219960, 44219970, 44219990, 44211000, 44219011, 44219012, 44219013, 44219014, 44219019, 44219020, 44219030, 44219040, 44219050, 44219060, 44219070, 44219090 | Other wood products, such as clothes hangers, spools, cops, bobbins, sewing thread reels, and the like of turned wood for various textile machinery, Match splints, pencil slats, wood parts, specifically oars, paddles, and rudders for ships, boats, and other similar floating structures, Parts of domestic ornamental products used as tableware | 12% |
| 4421 | 442191, 442199, 44219111, 44219119, 44219120, 44219130, 44219140, 44219150, 44219160, 44219170, 44219190, 44219911, 44219912, 44219913, 44219914, 44219919, 44219920, 44219930, 44219940, 44219950, 44219960, 44219970, 44219990, 44211000, 44219011, 44219012, 44219013, 44219014, 44219019, 44219020, 44219030, 44219040, 44219050, 44219060, 44219070, 44219090 | Wood paving blocks, articles of densified wood not otherwise included or specified. Parts of home ornamental items used as tableware and kitchenware | 18% |
| 4421 | 44219990 | Woodcarvedarticles,woodartware/decorativewoodarticles(including inlay work, casks, barrels, and vats). | 12% |
| 44 | Idols of wood | 12% | |
| 4402 | – | Wood charcoal (shell and nut charcoal), whether or not agglomerated | NIL |
| 44 | – | The followingare: a. Cement Bonded Particle Board; b. Jute Particle Board; c. Rice Husk Board; d. Glass Fiber Reinforced Gypsum Board (GRG); e. Sisal-fibre Boards; f. Bagasse Board; and g. Cotton Stalk Particle Board. h. Particle/fiber boardfromleftovers of crops. | 12% |
| 44 | – | Godsmadeofmarble,stone, and wood | NIL |
Also Read - Find out how to file your GST returns online
Understanding Chapter 44 of the HSN System
The GST classification of wood and its products is critical for timber trading, furniture making, and construction businesses. While raw and lightly processed wood incurs a 5-12% GST rate, highly processed wood products, such as plywood, furniture, and joinery items, are charged 18%.You can use the GST calculator to find the exact GST rates and the total GST payable by the business. The calculator is quick, simple, and yields accurate results for hassle-free tax returns.Knowledge of GST rates and HSN codes assists companies in adhering to tax legislation, optimising pricing, and claiming input tax credits wherever available. Being aware of taxation policies ensures enhanced financial planning and seamless operations in the wood and wood-based product sectors.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the raw log wood GST rate?
The raw log wood GST rate is 12%, applicable to rough, unprocessed timber used in construction and manufacturing. This rate ensures affordability while promoting the use of natural wood in various industries.
What is the GST rate for plywood and veneers?
Plywood, veneers, and other value-added processed wood products draw an 18% GST rate. These products involve manufacturing processes and hence fall under a higher tax slab.
Do wooden furniture products attract GST?
Yes, wooden furniture and its components are charged an 18% GST under HSN code 9403. Whether home, office, or decorative furniture, all wooden furniture comes under this head.
What is the GST rate on wood charcoal?
Charcoal made of wood is charged at a reduced rate of 5% GST, and hence, it is cheaper for fuel and industrial purposes. It is used extensively in heating, metallurgical operations, and even in water treatment.
Is GST levied on imported wood?
Yes, imported wood is subject to the same GST rates as wood manufactured locally, along with customs duties and other charges. Importers must refer to specific duties under trade agreements and international tariffs.
Can companies recover an input tax credit (ITC) on wood purchases?
Yes, companies can recover ITC on GST paid on wood and wood products if they are utilised for commercial production or resale. This enables manufacturers and traders to recover the GST paid on purchases against the GST charged on sales.
What is the GST rate on wooden doors, windows, and frames?
Wooden doors, windows, and frames are levied an 18% GST as they belong to joinery and carpentry wood of the builders. These materials are widely applied in construction and interior design and contribute immensely to infrastructure value.
Are wooden handicrafts GST-exempt?
No, wooden handicrafts are typically subject to 18% GST, but small manufacturers and artisans can avail themselves of composition schemes. Traditional and handmade handicrafts are taxed in the same way as industrial wooden products unless otherwise stated.
How does GST impact the timber industry?
The GST has made tax compliance easier, but increased rates for processed wood items such as plywood have raised the costs for consumers and businesses. It has, however, unified the tax system, eliminating various indirect taxes in favour of one tax system.
How does GST affect the cost of wooden packaging materials?
Wooden crates, pallets, and packing materials are charged 12% GST, which makes packaging solutions a bit pricier but ITC-eligible. Most industries use wooden packaging for export and transportation, and the GST rate affects overall logistics related expenses.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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