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October 17, 2024

Shaaransh Sharma

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Plywood, Laminates, and Veneers HSN Code & GST Rate - 4412

It holds a significant position in India's economy, especially with the increasing rate of infrastructure development and interior trends. Those included plywood, laminates and veneers as the most frequently applied materials. These are products the taxes on which, based on their HSN codes and thus GST rates, add to the costs of manufacturers/traders, etc., as well as eventual consumers/taxpayers.

This article discusses HSN Code 4412 which pertains to plywood, veneered panels and laminated wood as well as GST rates applicable to these materials. After having explained all the above, as one of the top wood suppliers in India will help you to sail through some understanding about how the HSN code system works, tax structures and what category of wood is placed under the Indian taxation framework when this is completed.

What is the HSN Code?

The Harmonized System of Nomenclature (HSN) is a universal economic language and code for the classification of goods as per the World Customs Organization. HSN codes in India are used for the systemic categorisation of products under GST to get identical taxation processes. Every product falls under the same category and nature, hence it comes with a unique HSN code. The use of the HSN code in the GST system is quite comprehensive as it helps eliminate the mismatches that exist between a tax rate and the tax slab.

HSN Code 4412

The HSN code 4412 is unique to plywood, veneered panels and similar laminated wood products. Nearly 80% of the products derived from wood are included in this code, such as goods for various purposes: construction, furniture, and interior items.

List of items other than bricks and tiles under HSN 4412:

- Plywood

- Laminated Wood

- Veneers

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
4412	Plywood, Veneered Panels & Similar Laminated Wood	18	15/11/2017	18% replaced 28%
44121000	Plywood, Veneered Panels & Similar Laminated Wood - Bamboo	18	15/11/2017	18% replaced 28%
44121310	Decorative Plywood - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121320	Tea Chest Panels or Shooks - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121330	Other Tea Chest Panels - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121340	Marine and Aircraft Plywood - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121350	Cuttings and Trimmings - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121390	Other Plywood - Sheets ≤ 6mm with Tropical Wood	18	15/11/2017	18% replaced 28%
44121410	Decorative Plywood - Non-Coniferous Outer Ply, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121420	Tea Chest Panels or Shooks	18	15/11/2017	18% replaced 28%
44121430	Marine & Aircraft Plywood - Non-Coniferous Outer Ply, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121440	Cuttings & Trimmings - Non-Coniferous Outer Ply, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121490	Other Plywood - Non-Coniferous Outer Ply, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121910	Decorative Plywood - Other Plywood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121920	Tea Chest Panels or Shooks - Other Plywood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121930	Marine & Aircraft Plywood - Other Plywood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121940	Cuttings & Trimmings - Other Plywood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44121990	Other Plywood - Other Plywood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44122210	Decorative Plywood - Non-Coniferous Outer Ply, Tropical Wood	18	15/11/2017	18% replaced 28%
44122220	Tea Chest Panels or Shooks - Non-Coniferous Outer Ply, Tropical Wood	18	15/11/2017	18% replaced 28%
44122230	Marine & Aircraft Plywood - Non-Coniferous Outer Ply, Tropical Wood	18	15/11/2017	18% replaced 28%
44122240	Cuttings & Trimmings - Non-Coniferous Outer Ply, Tropical Wood	18	15/11/2017	18% replaced 28%
44122290	Other Plywood - Non-Coniferous Outer Ply, Tropical Wood	18	15/11/2017	18% replaced 28%
44122310	Decorative Plywood - Containing Particle Board	18	15/11/2017	18% replaced 28%
44122320	Tea Chest Panels or Shooks - Containing Particle Board	18	15/11/2017	18% replaced 28%
44122330	Marine & Aircraft Plywood - Containing Particle Board	18	15/11/2017	18% replaced 28%
44122340	Cuttings & Trimmings - Containing Particle Board	18	15/11/2017	18% replaced 28%
44122390	Other Plywood - Containing Particle Board	18	15/11/2017	18% replaced 28%
44122910	Elastic Laminated Plywood	18	15/11/2017	18% replaced 28%
44122920	Decorative Plywood	18	15/11/2017	18% replaced 28%
44122930	Tea Chest Panels or Shooks	18	15/11/2017	18% replaced 28%
44122940	Marine & Aircraft Plywood	18	15/11/2017	18% replaced 28%
44122950	Cuttings & Trimmings of Plywood	18	15/11/2017	18% replaced 28%
44122990	Other Plywood	18	15/11/2017	18% replaced 28%
44123110	Plywood - Tropical Wood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44123120	Plywood - Tropical Wood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44123130	Plywood - Tropical Wood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44123140	Plywood - Tropical Wood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44123150	Plywood - Tropical Wood, ≤ 6mm	18	15/11/2017	18% replaced 28%
44123190	Other Plywood - Tropical Wood	18	15/11/2017	18% replaced 28%
44123210	Decorative Plywood - Non-Coniferous	18	15/11/2017	18% replaced 28%
44123220	Tea Chest Panels - Non-Coniferous	18	15/11/2017	18% replaced 28%
44123230	Marine & Aircraft Plywood - Non-Coniferous	18	15/11/2017	18% replaced 28%
44123240	Cuttings & Trimmings - Non-Coniferous	18	15/11/2017	18% replaced 28%
44123290	Other Plywood - Non-Coniferous	18	15/11/2017	18% replaced 28%
44123310	Decorative Plywood - Specific Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123320	Tea Chest Panels - Specific Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123330	Marine & Aircraft Plywood - Specific Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123340	Cuttings & Trimmings - Specific Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123390	Other Plywood - Specific Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123410	Decorative Plywood - Non-Specified Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123420	Tea Chest Panels - Non-Specified Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123430	Marine & Aircraft Plywood - Non-Specified Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123440	Cuttings & Trimmings - Non-Specified Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123490	Other Plywood - Non-Specified Non-Coniferous Woods	18	15/11/2017	18% replaced 28%
44123910	Decorative Plywood - Coniferous Wood	18	15/11/2017	18% replaced 28%
44123920	Tea Chest Panels - Coniferous Wood	18	15/11/2017	18% replaced 28%
44123930	Marine & Aircraft Plywood - Coniferous Wood	18	15/11/2017	18% replaced 28%
44123940	Cuttings & Trimmings - Coniferous Wood	18	15/11/2017	18% replaced 28%
44123990	Other Plywood - Coniferous Wood	18	15/11/2017	18% replaced 28%
44129210	Elastic Laminated Plywood - Tropical Wood	18	15/11/2017	18% replaced 28%
44129220	Decorative Plywood - Tropical Wood	18	15/11/2017	18% replaced 28%
44129230	Tea Chest Panels - Tropical Wood	18	15/11/2017	18% replaced 28%
44129240	Marine & Aircraft Plywood - Tropical Wood	18	15/11/2017	18% replaced 28%
44129250	Cuttings & Trimmings - Tropical Wood	18	15/11/2017	18% replaced 28%
44129290	Other Plywood - Tropical Wood	18	15/11/2017	18% replaced 28%
44129310	Decorative Plywood - Particle Board	18	15/11/2017	18% replaced 28%
44129320	Tea Chest Panels - Particle Board	18	15/11/2017	18% replaced 28%
44129330	Marine & Aircraft Plywood - Particle Board	18	15/11/2017	18% replaced 28%
44129340	Cuttings & Trimmings - Particle Board	18	15/11/2017	18% replaced 28%
44129390	Other Plywood - Particle Board	18	15/11/2017	18% replaced 28%
44129400	Blockboard, Laminboard & Battenboard	18	15/11/2017	18% replaced 28%
44129910	Decorative Plywood - Other	18	15/11/2017	18% replaced 28%
44129920	Tea Chest Panels - Other	18	15/11/2017	18% replaced 28%
44129930	Marine & Aircraft Plywood - Other	18	15/11/2017	18% replaced 28%
44129940	Cuttings & Trimmings - Other	18	15/11/2017	18% replaced 28%
44129990	Other Plywood - Other	18	15/11/2017	18% replaced 28%

All of the above products, despite being made from timber, are processed and finished differently resulting in different market applications and tax classifications. So let us start dismantling these wooden products and know their HSN codes with the GST rates.

You may also be interested in our other blog on Mentioning of HSN Code Mandatory in GSTR 1

Plywood HSN Code and GST Rate

Plywood is used as a wood product today and has replaced solid wood both in furniture walls and flooring. Wood veneers are cut in thin layers and adjacent is layered( each layer having its wood grain rotated by up to 90 degrees) an unsymmetrical composite. This improves the durability and flexibility of plywood which is why it is often used in buildings and interior designs.

HSN Code for Plywood: 4412

Plywood has been provided with an 18% GST Rate in the latest rate schedule. While the rate applies to the majority of plywood products, do check categories or exemptions with authorities or tax professionals.

Laminates HSN Code and GST Rate

Laminates are used as a protective and aesthetic surface for furniture, walls, or floors High-pressure laminates are created by bonding layers of kraft paper, decorative paper and a protective overlay to a wooden or plastic substrate under high pressure and temperature.

In the production of wood products, maple refers most widely to plywood loosely referred as to laminated wood not engineered for specific applications.

HSN Code for Laminates 4412

Laminates fall under the 18% GST Rate. Laminates are functionally similar to plywood and subject ot GST rate revisions depending on their final finish or treatment.

Veneers HSN Code and GST Rate

Veneer is a thin slice of real wood that is used on core panels (most commonly, wood materials such as Plywood or MDF and sometimes a cheaper material used for Veneer panels to make cheap wardrobes such as Particleboard ) to give the appearance of solid wood. Veneers, due to their beautiful appearance are generally used as inlays on doors, panels or even this cutlery.

There are different types of veneers:

1. Raw veneer:

This is simply a sheet of plain wood used straight off the bat, without any further treatment.

2. Reinforced Veneer:

It is combined with another material such as paper or fabric to strengthen and toughen up.

3. Reconstituted veneer:

Engineered to look like other species of wood.

What Does HSN Code 4412 Encompass?

These are not only plywood, laminates and veneers that are being looked at but something more that comes under the HSN code 4412. This code also includes other wood products such as :

Blockboard: This is a type of plywood, where the core is made of strips of softwood wood.

Particle Board: Sheets of compressed wood chips, sawdust and resin.

Fiberboard: MDF (Medium-Density Fiberboard) and HDF (High-Density Fiberboard).

Laminated Veneer Lumber (LVL): a composite building material for beams and other load-bearing structures

Wood Furniture and Wood Products: Engineered wood, particle board, hardboard, fiberboard, OSB, insulation board, lateral and backing; Hence, all of them come under HSN 4412.

4412 HSN Code and GST Rate

In other words, HSN Code 4412 is applicable to Plywood, Laminated Wood (including impregnated laminated wood) and veneered panels, where the tax will mostly be of a rate of 18%GST. Most taxes and exempt as per the government notifications, just staying updated with tax rates is what you may require.

Key Factors Impacting GST on Plywood, Laminates, and Veneers

Some of the main factors leading to fluctuation in the GST rate on plywood, laminates, and veneers are as follows −

1. Category:

The GST rate may change according to the type of wood and treatment on a product-type basis. Specialized wood treatments, for instance, could trigger a different rate.

2. End Use:

Items can be taxed at a lower GST rate or are exempted as per the use, such as for-, low-cost housing, rural development etc.

3. Social Responsibility:

GST rates may fluctuate relative to the economic vision of the central government such as focusing on manufacturing or encouraging green substitutes.

Challenges for Businesses

Challenges for businesses involved in Plywood Laminates and Veneers getting GST compliant are :

Correct Classification:

Ensure that their products are classified under the correct HSN code to prevent any penalty or tax dispute.

GST Filing:

Timely GST returns and input tax credit filings to maximize cash flow and minimize tax obligations.

Stay Updated:

Keep up with updates to government notifications regarding their product category and the likely HSN & SAC code that applies or any changes in relevant tax laws influencing GST rates.

Conclusion

To know the classification of HSN code in respect of a business it would be helpful for a businessman to ensure whether he could claim benefit of the prepared HSN classification and also they can know how much rate of gst has been fixed at such commodity so that they can comply with its details and can correctly price their goods

As is the norm, businesses should take professional assistance or employ tools such as automated software for their GST filings and incorporate regular tax changes to avoid any compliance problems. Because tax is incredibly elastic and the government can change policy, industrial legislation makes it important for those in the industry to be knowledgeable and flexible.

By rightly classifying and taxing, businesses will not only cut down on time on administrative tasks but can prioritize extending their business to one of the largest real estate and interior design markets in India.
We have also covered the HSN code for wooden furniture in Wooden Furniture: 9403 HSN Code and GST Rate

Smooth GST Compliance with Swipe

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