GST on Furniture Remains 18% — What Really Impacts Furniture Prices This Festive Season

As the festive season of 2025 approaches, furniture buyers are not just thinking about quality and style—they are also keen to understand pricing dynamics, taxes, and the best time to buy. One thing remains clear: GST on furniture continues to stay at 18%, providing stability for budgeting and planning. But this year, the real excitement comes from furnisquare's Diwali Sale, offering up to 60% off on all wooden furniture, including beds, sofas, dining sets, storage units, and home décor items. Whether you’re looking to upgrade your living room, bedroom, or office space, this festive season offers a perfect opportunity to combine transparent pricing, high-quality craftsmanship, and massive seasonal savings. From premium solid wood designs to stylish modular furniture, buyers can enjoy the best of both worlds—a fixed GST rate for clarity and huge discounts for value.

For buyers, this means an excellent opportunity to combine tax clarity with festive savings.

1. Furniture GST Rate 2025: The 18% Reality

The GST rate on furniture in India continues to remain 18% in 2025, unchanged from previous years. This rate applies across most categories, including all types of wooden furniture, modular kitchen accessories, lighting, carpets, office furniture, and home décor. For buyers, this consistency is a relief—it allows better budgeting and planning without worrying about sudden tax hikes. For manufacturers and retailers, it offers a stable pricing structure, ensuring smoother operations during peak festive demand.

2. GST Rates for Different Furniture Categories

Wooden Furniture and Accessories – 18% GST

All types of wooden furniture—beds, sofas, dining sets, wardrobes, study tables, bookshelves, and wooden accessories like spice boxes and cutlery holders—fall under the 18% GST bracket. Whether you’re buying a premium solid wood bed or a small kitchen organizer, the GST component remains the same.

Lighting Fixtures and Decorative Lamps – 18% GST

Lighting plays a huge role in festive décor. From table lamps and chandeliers to pendant lights and wall-mounted fixtures, all decorative lighting products attract 18% GST. Since lighting is a popular festive purchase, understanding this rate helps buyers calculate their total costs accurately.

Carpets and Rugs – Varying GST Rates Explained

Carpets and rugs are slightly different. While many decorative rugs fall under the 18% GST rate, some varieties—depending on material (wool, cotton, synthetic) and weaving process—may attract other slabs. Buyers should always check invoices carefully for clarity.

3. Key Factors Affecting Furniture Prices Beyond GST

Raw Material Price Fluctuations (Wood, Metal, Fabric)

Even though GST is fixed, raw material costs can swing widely. For example, Sheesham wood prices may rise by 15–20% during festive demand. Similarly, teak, oak, and metal components (hinges, handles, structural parts) are influenced by global commodity prices. Upholstered furniture is affected by fabric costs, which fluctuate with textile market trends.

Seasonal Demand and Festive Season Premiums

During Diwali and festive months, demand peaks. This leads to:

• Higher raw material prices due to supply shortages
  

• Increased labor costs with overtime manufacturing
  

• Premium delivery and logistics charges
  

• Limited stock of popular designs
  
  

Manufacturing Costs and Capacity Constraints

Factories run at full capacity in festive months. If demand exceeds supply, lead times stretch, and customers may need to pay premiums for priority delivery or custom designs.

Logistics, Warehousing, and Delivery Challenges

Transportation and storage costs also rise. Furniture being bulky, last-mile delivery in congested urban areas often adds extra charges. Fuel price hikes further push up delivery costs.

4. Best Time to Buy Furniture During Festive Season

Pre-Festive Season Advantages for Buyers

Planning early helps avoid seasonal price hikes. Buyers can enjoy:

• Stable pricing before festive premiums kick in
  

• Wide availability of trending designs
  

• Flexible delivery schedules
  

• Early-bird discounts from manufacturers
  
  

Post-Festive Season Discounts and Clearance Sales

For those who can wait, post-Diwali sales often bring clearance discounts. Retailers clear stock for new collections, making it a good time to buy at competitive prices.

5. GST and Corporate Furniture Purchases

Corporate Furniture Gifting and Input Credit Benefits

Many companies invest in bulk furniture purchases or corporate gifting (like office chairs, storage units, or even home furniture for employees). Registered businesses benefit from GST input credits, reducing overall costs. However, branding, customization, and logistics add to the budget.

Bulk Furniture Orders and Pricing Advantages

Large orders unlock:

• Manufacturer-direct pricing (skipping retail markups)
  

• Customization at scale
  

• Economies of scale in production and shipping
  

• Flexible payment terms for long-term business partners
  
  

6. Regional and State-Level Impact on Furniture Prices

CGST, SGST, and IGST: Understanding Tax Splits

For intra-state purchases, GST is split as CGST + SGST, while inter-state purchases attract IGST. Though the total remains 18%, this affects cash flow and compliance for businesses.

State-Specific Incentives for Furniture Buyers

Some states encourage local manufacturing through incentives, reducing costs in those regions. Buyers purchasing locally made furniture may indirectly save on logistics and import duties.

Imported vs. Locally Manufactured Furniture

Furniture with imported components (metal hardware, luxury fabrics) may carry extra customs duties and currency fluctuation risks, whereas fully Indian-made furniture avoids these additional costs.

7. Sustainability and Compliance Costs in Furniture Pricing

Eco-Friendly Manufacturing and Certified Wood Costs

As demand for sustainable furniture rises, costs increase due to certified wood sourcing, water-based finishes, and eco-friendly manufacturing processes.

Regulatory Compliance and Safety Standards

Furniture makers must comply with environmental, safety, and quality certifications, adding to testing, documentation, and equipment upgrade expenses.

8. Financing Options That Influence Furniture Pricing

EMI Schemes, Credit Card Offers, and Festive Finance Deals

Many buyers don’t pay the full price upfront. With zero-cost EMI options, credit card cashback offers, and buy-now-pay-later schemes, effective pricing can be managed more easily. During festive seasons, banks and brands often roll out special financing deals.

9. How to Make Smart Furniture Purchase Decisions

Price Comparison Across Multiple Furniture Sellers

Always compare total landed cost—product price + GST + delivery + installation. Sometimes a higher MRP may offer better warranty and service, balancing overall value.

Balancing Quality vs. Furniture Price

Premium hardwood furniture may seem expensive but offers durability, resale value, and timeless appeal. Budget furniture, while cheaper, may not last long.

Durability, Warranty, and Long-Term Value

When buying furniture, think of lifetime value, not just upfront cost. Warranties, after-sales service, and maintenance support add to real savings over time.

10. Future of Furniture Pricing and GST in India

Will Furniture GST Remain at 18%?

Industry experts expect stability at 18% GST for the near future, providing predictability.

Technology and Smart Manufacturing in Furniture

Automation and AI-driven design tools may lower production costs, improving affordability for buyers.

Sustainability Premiums in Furniture Pricing

Eco-friendly furniture may continue to attract higher pricing due to responsible sourcing and green compliance.

Economic Trends Driving Furniture Market in 2025

Furniture demand is shaped by:

• Rising disposable income
  

• Real estate growth fueling new homes
  

• Shifting consumer preference for premium, long-lasting wooden furniture