GST invoice format for a timber merchant (saw mill and timber depot)
A timber merchant sells logs, sawn sizes and planks measured in cubic feet or cubic metres, and the forest department watches every movement as closely as GST does. Beyond the standard fields, the invoice should name the species (teak, sal, pine, hardwood), give dimensions and the calculated volume for each piece or lot, quote the forest transit pass number where the state requires one, separate sawing or cutting charges, and mention the TCS collected under income-tax rules for timber.
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Teak wood sawn sizes, 2 in x 4 in, assorted lengths
4407
32.5 CFT
4,200.00
1,36,500.00
18%
Sal wood beams 6 in x 4 in
4407
48 CFT
1,650.00
79,200.00
18%
Pine wood planks 1 in thick, planed
4409
60 CFT
980.00
58,800.00
18%
Hardwood logs in the rough
4403
4.2 CBM
26,500.00
1,11,300.00
18%
Taxable value
₹3,85,800.00
GST (CGST + SGST, or IGST if inter-state)
₹69,444.00
Invoice total
₹4,55,244.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a timber merchant invoice needs
Species and grade
Burma teak, local teak, sal, Malaysian sal and pine differ several-fold in price. The species and grade on each line stop disputes over substitution and help the buyer's carpenter confirm what was delivered.
Dimensions and cubic volume
Timber is priced per cubic foot or cubic metre. Printing length, width and thickness with the computed volume lets the buyer re-check the arithmetic, which is where most timber billing disputes start.
Transit pass / permit number
Many states require a forest transit pass to move timber of notified species. Quoting the pass number on the invoice links the tax document to the permit an inspector will ask for on the road.
Sawing and cutting charges
Depots often cut logs to the customer's sizes. Showing sawing as a separate line makes clear whether it is part of the supply of timber or a separate job-work service.
Moisture / seasoning status
Kiln-dried and air-seasoned wood command a premium over green timber. Stating the seasoning status reduces returns when wood warps after delivery.
TCS collected
Sellers of timber collect income-tax at source from the buyer. Showing TCS below the GST total, outside the taxable value, makes the final receivable correct.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Wood in the rough, sawn and shaped wood are all 18%
In the goods schedules effective 22 September 2025, wood in the rough (4403), wood sawn or chipped (4407) and wood continuously shaped such as tongued, grooved or planed (4409) are listed in the 18% schedule. The rate does not drop because the timber is unprocessed. What matters on the invoice is the correct heading for each lot, because a depot that sells logs, sawn sizes and moulded planks on one bill will show three headings in its HSN summary. Bamboo flooring and wood for match splints are carved out of these entries, so don't assume every wood product follows the same line.
Sawing charges: same supply or job work
If you sell your own logs cut to size, the sawing is part of the supply of sawn wood and is taxed at 18% with it. If a customer brings their own logs to your mill for cutting, you are providing job-work service on goods owned by someone else, which is billed under a services SAC, not as timber. Mixing the two on one invoice without explanation creates a classification question on audit.
Income-tax TCS on timber
Section 206C(1) of the Income-tax Act requires sellers of timber obtained under a forest lease, timber obtained by any other mode, and other forest produce to collect TCS from the buyer at the rates in that section. TCS is not part of GST's taxable value; show it as a separate line after the GST total and deposit it under your TAN. Buyers using timber for their own manufacturing should give the declaration that removes TCS on a purchase used for manufacture, so keep that declaration on file.
Forest transit permits and e-way bills together
State forest acts require transit passes for movement of many species, independent of GST. The e-way bill requirement for consignments above Rs 50,000 applies on top. A truck stopped with an e-way bill but without a valid pass, or vice versa, can be detained. Generate both before dispatch and print both references on the invoice.
Measurement rounding and the unit code
Timber volume is calculated from rounded dimensions, often by the Hoppus or true-measure method. Whatever method you use, state it on the invoice and apply it consistently, because the computed volume is the taxable quantity. For GST returns, report quantity under the standard unit code for cubic metres or cubic feet you have chosen and keep it the same every month.
Common billing mistakes
✕Treating logs in the rough as lower-rated raw material when heading 4403 is in the 18% schedule.
✕Billing sawing charges for a customer's own logs as a sale of timber instead of a job-work service.
✕Adding TCS into the taxable value before calculating GST.
✕Dispatching teak without the state transit pass number on the invoice, even though the e-way bill was generated.
Timber merchant GST invoice: FAQ
What is the GST rate on teak wood?
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Teak sold as sawn sizes falls under heading 4407 and logs under 4403; both are in the 18% schedule of Notification 9/2025.
Can I bill in cubic feet?
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Yes. Cubic feet is the common trade unit. Print the dimensions and volume per lot, and use a consistent unit code in GSTR-1.
Is plywood billed the same way?
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No. Plywood is heading 4412 and is sold by sheet and thickness, not by volume. A depot selling both should keep separate item masters.
Do I collect TCS from a carpenter buying for a client?
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TCS on timber applies to the sale regardless of who the buyer is, unless the buyer gives the manufacturing-use declaration accepted under the Income-tax Act. Check current rates in section 206C before billing.