Wood – GST Rates & HSN Code 4409

Wood is a versatile and widely used material in India. It is used in construction, furniture, paper, and packaging industries, to name a few. As with any other commodity, wood products also come under the purview of the Goods and Services Tax (GST) in India. As such, it is essential for businesses to understand the GST rates and HSN code for wood products.

Understanding HSN Code for Wood

HSN stands for Harmonized System of Nomenclature. It is a standardized system of names and numbers for classifying commodities traded internationally. The HSN code for wood is 4409. This code covers wood and wood products such as lumber, sawn wood, particleboard, plywood, veneer sheets, and wood pulp.

It is important to note that wood products that are not mentioned under HSN code 4409 will be taxed under the GST rate applicable to the product category they fall under.

GST Rates Applicable for Wood Products

The GST rates applicable for wood and wood products under HSN code 4409 are as follows:

1. Logs: 12%

2. Timber and sawn wood: 12%

3. Particleboard, veneer sheets, and plywood: 18%

4. Wood pulp: 12%

It is important to note that these rates are subject to change as per the decisions of the GST Council. As such, businesses involved in the wood industry must stay updated on the latest GST rates applicable to wood products.

Impact of GST on Wood Industry

The implementation of the GST has had a significant impact on the wood industry in India. The introduction of a single unified tax system has simplified the tax structure for businesses involved in the wood industry. It has also led to a reduction in the overall tax burden for businesses, which has helped them become more competitive.

The GST has also made it easier for businesses to transport wood products across state borders. The removal of state-level taxes such as octroi, entry tax, and cess has reduced the compliance burden for businesses and made logistics more efficient.

Conclusion

HSN code 4409 and the GST rates applicable to wood products are essential pieces of information that businesses involved in the wood industry must be aware of. Understanding these inputs can help businesses comply with GST regulations and operate more efficiently. It is also important for businesses to stay updated on any changes in GST rates to avoid non-compliance and penalties.