GST on Mattress: Mattress HSN Code and GST Rate

During the financial year 2018-19, the Indian market for quality mattresses was worth $1.7 billion. This market is expected to rise two-fold to $2.8 billion by FY24. However, only 35% of the market is accounted for by the organised mattress segment, which is likely to rise slightly to 40% by FY24. Against this backdrop, let us understand the applicability of GST on mattress in India.

Scope of Taxation of Mattress Under GST 

Under chapter 94 of the CGST Act 2017, mattresses are classified as miscellaneous manufactured articles. Under Section XX of this Chapter, mattresses and mattress supports are clubbed together with furniture and other similar furnishings and fittings for determining the GST levy.

At the time of implementation of the GST regime, mattresses, including coir mattresses, were levied a GST of 28%. But after the 23rd meeting of the GST Council, the GST rate on mattresses was rationalised and pruned to 18% on 10th November 2017. 

But, Chapter 94 excludes pneumatic and water mattresses from under its remit. Instead, these are covered under chapters 63, 39, and 40 and are subject to 12% GST.

Place of Supply

Depending on the place of supply ascertained for mattresses, the treatment of the GST levy will vary. 

When goods—mattresses, in this case, are transported from one state to another, such a supply is considered an inter-state supply of mattresses (goods). As a result, IGST will be levied on this supply.

Conversely, when mattresses (goods) are delivered within the state, it will be called an intra-state supply. Consequently, such a supply will attract both CGST and SGST.

GST Rate and HSN Code on Mattress

The applicable GST rate is 18%, except for pneumatic mattress, which attract 12% GST.

Mattresses and mattress support fall under the HSN Chapter 94 titled, ‘Miscellaneous Manufactured Articles.’ However, chapter 94 excludes water and pneumatic mattresses, which fall under chapters 39, 40, or 63 of the CGST Act, 2017.

The HSN Code on mattresses is 9404, which includes mattress supports, bedding articles, and furnishings like mattresses. These mattresses can be stuffed, springs-fitted, internally fitted with some material, or be made of plastics or cellular rubber, irrespective of their coverage.

To learn more about GST rates and HSN codes on furniture, click here.

Availability of ITC on GST on Mattress

As per Section 16(1) of the CGST Act 2017, a registered taxpayer can claim an input tax credit (ITC) on goods and services utilised to further the business. However, these claims are subject to certain restrictions as underlined under Section 17(5) of the CGST Act. You can learn about these ITC restrictions in detail here. 

Advance Rulings Related to GST on Mattress

Order No. 17/ARA/2020, dated 20th April 2020

Facts of the case: M/s. Global Textile Alliance India Private Ltd., a manufacturer and supplier of fabrics, requested an advance ruling for determining the correct classification and applicability of GST rates on fabric-based covers made for mattresses. This company used knitted and woven fabrics for producing mattress covers. The company believed its goods should be classified as ‘made ups’ in accordance with Section 11 of the Customs Tariff Act, 1975. As a result, they should attract 5% when the selling price is below Rs. 1,000 as per Schedule 1 of the CGST Act, 2017. Similarly, on mattresses costing over Rs. 1,000, a 12% GST should be charged.

Ruling: Tamil Nadu’s Authority for Advance Ruling (AAR) stated that covers for mattresses are covered under HSN 6304. Thus, mattress covers made of woven or knitted fabrics are classifiable under HSN 6304 19 90. It agreed that these goods costing under Rs. 1,000 would be taxed at 5%, and the goods priced at over Rs.1,000 would attract a 12% GST levy per Notification Number 1/2017 CT (R), dated 28th June 2017.

TSAAR Order No. 8/2018, dated 20th July 2018

Facts of the case: M/s. Victory Comfort Products sought an advance ruling for determining the taxability of coir sheets, including rubberised coir blocks and sheets. These sheets are ultimately used for manufacturing mattress layers, packaging, carpet underlying, etc. They also clarified that their product is covered under HSN code 9404. However, they were unsure whether these coir sheets should be classified as coir products, thus attracting a 12% GST (the applicable rate at that time) or 5% per the government’s latest notification.

Ruling: The Telangana State Authority for Advance Ruling stated that it is still determining the notification referred to in the application. It further ruled that, as per its understanding, the applicant’s products are made of coir fibre. These products were initially taxable at 12% GST when the GST regime was implemented. However, as per Notification Number 1/2017 CT (R), dated 28th June 2017, these coir products will now attract 18% GST under Schedule 3 of this notification.

After implementing the GST regime, the Indian mattress market has become more organised. While initially, mattresses were placed in the highest GST tax slab of 28%, the GST on mattresses was soon streamlined and brought down to 18%. With its organised and e-commerce segment experiencing ample growth, the government’s coffers will surely benefit from the high GST rates on mattresses.

FAQs on GST on mattresses

How much GST is levied on mattresses?

The rate of GST on bed mattresses is 18%.

What is the rate of GST on Sleepwell mattresses?

Sleepwell mattresses are levied a GST of 18%.

What is the applicable rate of GST on cotton mattresses?

The applicable GST rate on cotton mattresses is 18%. However, cotton pneumatic mattresses attract a 12% GST levy.

What is the rate of GST on foam mattresses?

The rate of GST on foam mattresses is 18%.

What is the rate of sales tax on mattresses?

No sales tax is charged on mattresses, as it has been replaced with the levy of GST.