Timber HSN Code

Building Blocks: Understanding Timber HSN Codes and GST

Timber, a fundamental material in construction, furniture making, and various industries, comes in many forms, from raw logs to highly engineered wood products. For businesses dealing with timber, accurately classifying it under the Harmonized System of Nomenclature (HSN) and applying the correct Goods and Services Tax (GST) rate is crucial for compliance and efficient trade. This guide will help shed light on the HSN codes and GST rates related to specific types of timber.

The Timber HSN Code

The HSN codes for timber are primarily found within Chapter 44, which covers “Wood and articles of wood; wood charcoal.” The data provided focuses on engineered timber products, which are increasingly common in modern construction.

Here’s how timber classifications appear in the data:

• Engineered Wood Products:
  • 44188100: This HSN code is for Glue-Laminated Timber (Glulam). Glulam is an engineered wood product made by gluing together multiple layers of solid lumber with the grain running parallel to the length of the laminations.
  • 44188200: This HSN code is for Cross-Laminated Timber (CLT or X-Lam). CLT is a large-scale, prefabricated, multi-layer wood panel product made from solid wood panels bonded together.
  • Both Glulam (44188100) and CLT (44188200) are subject to an 18% GST rate. The effective dates for these specific entries are not provided in the data, but generally align with other 18% GST rates from the initial GST rollout.

It’s important to note that the provided data also mentions “Timber Wedges” under Chapter 82 (“Tools, implements…”). These entries (e.g., 82013000, 82016000, 82015000, 82014000, 82011000, 82019000, and the general 8201) refer to hand tools used in agriculture or forestry, and specifically “Timber Wedges” which are tools, not the timber itself. These tools are uniformly subject to a Nil GST rate, effective from July 1, 2017. This distinction is crucial: tools for timber are different from timber products.

Understanding the GST Rate for Timber

Based on the provided data:

• Engineered timber products (Glulam and CLT) are subject to an 18% GST rate.
• Tools like “Timber Wedges” are subject to a Nil GST rate.

This highlights that the GST rate depends significantly on whether you are classifying the raw/processed timber product itself or a tool used with timber.