Supply of goods/service, HSN code ?
This query is : Resolved
28 May 2020
Hello all...!!
I am a sole proprietor, engaged in manufacturing - Kitchen Trolly (main product), other products- TV units, wardrobes, beds and other wooden home furniture as per customer's requirements (contract is = material + labour), I am confused as to will it qualify as supply as a service (works contract or job work) or will it qualify as supply of goods?
Also I am not able to find the right HSN code for my business products from the HSN code list. How shall I proceed.
Please Guide.
I am a sole proprietor, engaged in manufacturing - Kitchen Trolly (main product), other products- TV units, wardrobes, beds and other wooden home furniture as per customer's requirements (contract is = material + labour), I am confused as to will it qualify as supply as a service (works contract or job work) or will it qualify as supply of goods?
Also I am not able to find the right HSN code for my business products from the HSN code list. How shall I proceed.
Please Guide.
28 May 2020
It will fall under supply of goods.
HSN 9403 Other furniture .
HSN 9403 Other furniture .
Message likes :
1 times
29 May 2020
Thank you so much sir for your reply...!!
Also in (relation to Income Tax part), will I be eligible to file my business income under section 44AD??
As Interior decoration activities are specifically stated in 44ADA, but the only difference here being that I am not providing any designing service(professional service) as such, as stated above it only includes supply of goods (which are used for home decoration) which also includes my purchase material labour component cost in it.
Also in (relation to Income Tax part), will I be eligible to file my business income under section 44AD??
As Interior decoration activities are specifically stated in 44ADA, but the only difference here being that I am not providing any designing service(professional service) as such, as stated above it only includes supply of goods (which are used for home decoration) which also includes my purchase material labour component cost in it.
26 July 2025
Let's break down your questions step-by-step.
---
### 1. **Supply of goods or services?**
* You manufacture kitchen trolleys, TV units, wardrobes, beds, and other wooden furniture as per customer requirements.
* The contract involves **material + labour**.
* Such contracts are generally considered **sale of goods** with a **manufacturing job** component, **not a works contract service** or service supply.
**Why?**
* You are **delivering tangible goods**.
* Even if you are customizing furniture, the end product is goods, not a service.
Therefore, **it qualifies as supply of goods**.
---
### 2. **HSN Code for your products**
* Furniture falls under **Chapter 94** of the HSN.
* For furniture made primarily of wood, the commonly used HSN code is:
| Product Category | HSN Code | Description |
| ---------------- | -------- | --------------------------------- |
| Wooden Furniture | 9403 | Other furniture and parts thereof |
* More specific codes within 9403 may apply based on the exact type of furniture, but **9403** is the general code for wooden furniture.
---
### 3. **Income Tax – Eligibility under Section 44AD**
* **Section 44AD** is for presumptive taxation of businesses with turnover up to ₹2 crore (limit subject to periodic updates).
* It applies to **business income**, which includes manufacturing and trading.
* **Section 44ADA** applies specifically to **professionals** (like interior decorators providing professional services).
Since you are **engaged in manufacturing and sale of goods**, your income qualifies as **business income**.
Hence, **you are eligible to file under Section 44AD**, not 44ADA.
---
### **Summary**
| Query | Answer |
| ------------------------------ | ------------------------------------------------------- |
| Supply classification | Supply of goods (manufactured furniture) |
| HSN Code | 9403 (Other wooden furniture) |
| Income Tax section eligibility | Section 44AD (business income) |
| Interior decoration services? | Not applicable (since no professional service provided) |
---
If you want, I can help you draft a sample GST invoice with proper HSN coding or assist with Income Tax filing guidance under Section 44AD.
Would that be helpful?
---
### 1. **Supply of goods or services?**
* You manufacture kitchen trolleys, TV units, wardrobes, beds, and other wooden furniture as per customer requirements.
* The contract involves **material + labour**.
* Such contracts are generally considered **sale of goods** with a **manufacturing job** component, **not a works contract service** or service supply.
**Why?**
* You are **delivering tangible goods**.
* Even if you are customizing furniture, the end product is goods, not a service.
Therefore, **it qualifies as supply of goods**.
---
### 2. **HSN Code for your products**
* Furniture falls under **Chapter 94** of the HSN.
* For furniture made primarily of wood, the commonly used HSN code is:
| Product Category | HSN Code | Description |
| ---------------- | -------- | --------------------------------- |
| Wooden Furniture | 9403 | Other furniture and parts thereof |
* More specific codes within 9403 may apply based on the exact type of furniture, but **9403** is the general code for wooden furniture.
---
### 3. **Income Tax – Eligibility under Section 44AD**
* **Section 44AD** is for presumptive taxation of businesses with turnover up to ₹2 crore (limit subject to periodic updates).
* It applies to **business income**, which includes manufacturing and trading.
* **Section 44ADA** applies specifically to **professionals** (like interior decorators providing professional services).
Since you are **engaged in manufacturing and sale of goods**, your income qualifies as **business income**.
Hence, **you are eligible to file under Section 44AD**, not 44ADA.
---
### **Summary**
| Query | Answer |
| ------------------------------ | ------------------------------------------------------- |
| Supply classification | Supply of goods (manufactured furniture) |
| HSN Code | 9403 (Other wooden furniture) |
| Income Tax section eligibility | Section 44AD (business income) |
| Interior decoration services? | Not applicable (since no professional service provided) |
---
If you want, I can help you draft a sample GST invoice with proper HSN coding or assist with Income Tax filing guidance under Section 44AD.
Would that be helpful?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR-3 ignores Section 211 (1) (b) for Professionals u/s 44ADA
- ERROR IN ITR3
- Make-up ITC- Eligibility
- ITC Re-claimable Ledger
- Overtime income in salaried person case
- New tax regime and old tax regime.
- Upload Verification Error ITR 3 AY205-26
- Regarding GST applicability on RWA
- Error while filing ITR3 AY2025-26
- Rectification of error U/s 154
- Political donation deduction removed in revised return
- CSR Applicability FY 2425
- Late fee CMP-08 FY 2021-22
- Mismatch in gstr-1 and eway bill invoice no
- Clarification Regarding Tax Deduction at Source on Receipt Against Issuance of Privilege Voucher
- GST TDS on metal scrap
- ITC Inter head difference
- 80CCD(2) of IT ACT
- Guidance for proper GST accounting (eway bill with correct valuation) for cut-to-pack job work given
- GST Treatment multiple delivery services
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
