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Impact of GST on Home Decor Items and Design Services

With the objective to fill-in loopholes and boost the Indian economy, GST or Goods and Services Tax has been effectively implemented since April 2017. Spanning all sectors from airlines, hospitality, FMCG, pharma, healthcare, telecom to automobile and construction industries, the new tax system has brought about several abrupt changes.

Likewise, when it comes to furnishing your home with the latest gadgets and electronic appliances, you may have to pay more. Including VAT, CST and other taxes, household electrical appliances were in the range of 25-26% in the pre-GST era. Post GST, tax rate on washing machines, refrigerators, chimneys and vacuum cleaners among others has been fixed at 28%. As a result, the overall tax burden has gone up by around 2-3% and this has obviously been passed onto customers.

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Well, coming to other household items and mattresses, there is a higher GST rate of 28% which means that the tax burden in this case has also increased. However, there's some relief when it comes to carpets, LED lights and lamps since they have attracted 12% alike, which is lower than their prior tax incidence of 25% and 17.5% respectively. While wooden furniture has come down to 12% from its previous 12.5% slab, cane furniture makes a dramatic leap from 4-5% to 28%. Cement tiles, paints, leather, wallpapers, laminates, and plywood, among others get a GST seal of 28%.

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Now, let’s take a look at the different GST slabs and their home decor inclusions:

5% GST Slab

Coir mats, matting and floor covering

12% GST Slab

Wood cement bonded particle board; Jute particle board; Glass fiber reinforced gypsum board; Sisal-fiber board; Bagasse board; Cotton stalk particle board; Particle/fiber board; Tools, tool bodies, tool handles, broom or brush bodies and handles (wood); Cutlery caskets and cases; Wooden furniture; Tableware and kitchenware; Carpets and other textile floor coverings, Mats, cotton handloom, cotton rugs

12-18% GST Slab

Marble and granite

14.5% -28% GST Slab

Home decor items

18% GST Slab

Resin bonded bamboo mat board with or without veneer in between; Bamboo flooring tiles; Wooden kitchenware and tableware; Coir products and mattresses; Cotton pillows and mattresses; Lamps and light fittings; Ceramic tableware, kitchenware; Other household articles and toiletries (other than porcelain or china bone); Statuettes; Picture or similar frames of base metal; Mirrors of base metal

18-28% GST Slab

Tiles; CP fittings; Aluminium windows

28% GST Slab

Particle board; Oriented strand board with or without resin; Fiberboard of wood with or without resins; Plywood, veneered panels and similar laminated wood; Wooden frames for paintings, photographs, mirrors, etc.; Cellular wood panels, assembled flooring panels; Cement, Glass; Wire and cable; Paint and varnish; Sanitary fittings; Wallpaper; Wooden doors and windows

All services appertained to architecture and design fall under the 18% GST slab as compared to the prior 15% rates. Most of the building materials and home products are lodged in the 28% category.

A quick glance at the price differences of few home requisites, pre and post GST in Bangalore.

Material Type Pre-GST Post-GST
Carpet 14.5% 18%
Fabric 5.5% 5%
Vinyl 14.5% 12%
Mattress 14.5% 18%
Wallpaper 14.5% 18%
Curtains 5.5% 5%
Blinds 14.5% 12-18%
Veener 14.5% 18%
Plywood 14.5% 18%
Glass 14.5% 18%
Laminates 14.5% 18%
Sanitary Fixtures 14.5% 18%
Tiles 14.5% 18%
Lights 14.5% 18%
LEDs 14.5% 12%
Wires 14.5% 18%
Switch 14.5% 18%

Due to differences in the preceding tax category, GST can vary from state to state. Just check with your vendor, in case you’re planning to purchase home decoration items or avail design services.

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Madhurima Das

Madhurima Das

Madhurima is a microbiologist by qualification and writer by choice, emotional yet practical, sensitive yet sensible. She is always enthusiastic about good music, books, food, and destinations.

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