Looking for expert help with Income tax and GST for mattress manufacturers India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- Every mattress is 18% GST: foam, spring, latex and coir alike (Notification 9/2025-CT(R), Schedule II, S. No. 613). Pillows and cushions are 18% too.
- Coir products under 9404 other than coir mattresses, such as coir pillows, are 5% (Schedule I, S. No. 491).
- Cotton quilts and quilted textile products up to Rs 2,500 a piece are 5% (Schedule I, S. No. 492 and 493). Above Rs 2,500, they're 18%.
- Register above Rs 40 lakh turnover (Rs 20 lakh in Telangana), or from the first sale to another State. Deliveries above Rs 50,000 need an e-way bill.
- Income tax: Section 44AD deems 6% of digital receipts and 8% of cash receipts as profit, for turnover up to Rs 2 crore (Rs 3 crore with cash within 5%).
What is the GST rate on mattresses? Mattresses are taxed at 18% GST (9% CGST plus 9% SGST) under Schedule II, S. No. 613 of Notification 9/2025-Central Tax (Rate), in force from 22 September 2025. This covers foam, spring and coir mattresses, pillows and cushions. Cotton quilts and quilted textile products priced up to Rs 2,500 a piece, and coir products other than mattresses, are 5%.
Ask ten small mattress units what GST they charge on a coir mattress and you'll hear both 5% and 18%. The 18% answer is the right one, and the mix-up comes from a single bracket in the rate notification. This guide is for foam and coir mattress makers, spring mattress assemblers, pillow and razai makers, and the CAs who keep their books. It covers GST from 22 September 2025 and income tax for FY 2025-26 (AY 2026-27) under the Income-tax Act 1961, with the Income-tax Act 2025 numbers that apply from 1 April 2026.
Mattress GST rate and HSN code (9404): foam, coir, spring and quilts
Heading 9404 of the Customs Tariff covers mattresses, quilts, pillows, cushions and other bedding. Notification 9/2025-CT(R) taxes the whole heading at 18%, and then carves three items out to 5%:
Comparison
GST on Bedding Products (Heading 9404) from 22 September 2025
| Product | GST | Notification entry |
|---|---|---|
| Foam, PU, latex, bonded foam and spring mattresses | 18% | 9/2025-CT(R), Schedule II, S. No. 613 |
| Coir mattresses and rubberised coir mattresses | 18% | Schedule II, S. No. 613 (excluded from the 5% coir entry) |
| Pillows, cushions, pouffes, mattress supports | 18% | Schedule II, S. No. 613 |
| Coir products under 9404 other than mattresses (coir pillows, coir cushions) | 5% | Schedule I, S. No. 491 |
| Cotton quilts (razai) of sale value up to Rs 2,500 a piece | 5% | Schedule I, S. No. 493 |
| Products wholly of quilted textile material up to Rs 2,500 a piece | 5% | Schedule I, S. No. 492 |
| Cotton quilts and quilted products above Rs 2,500 a piece | 18% | Schedule II, S. No. 613 |
Source: Notification 9/2025-Central Tax (Rate), 17 September 2025, in force 22 September 2025. Notification 01/2026-Central Tax (Rate), the only rate notification issued in 2026 so far, amends none of these entries.
The coir entry is where units go wrong. Schedule I, S. No. 491 reads "Coir products (except coir mattresses)". So a coir pillow is 5%, and a coir mattress made of the same rubberised coir is 18%. If you've been billing coir mattresses at 5%, the 13% shortfall is payable by you, with interest.
The Rs 2,500 test works per piece. A razai sold at Rs 2,200 is 5%. A double-bed razai sold at Rs 3,000 is 18%. If your price list has quilts on both sides of Rs 2,500, set up two separate items in your billing software so the rate follows the price.
GST on your inputs: foam chemicals, fabric, springs and coir
Your purchase bills carry a mix of rates. Here's where the main raw materials sit:
Comparison
GST on Common Mattress Inputs
| Input (HSN) | GST | Notification entry |
|---|---|---|
| Polyols, polyurethanes and other polymers in primary form (3901 to 3913) | 18% | 9/2025-CT(R), Schedule II, S. No. 114 |
| Organic chemicals such as TDI (Chapter 29) | 18% | Schedule II, S. No. 36 |
| Foam sheets and other plastic sheets (3921) | 18% | Schedule II, S. No. 122 |
| Steel springs for spring mattresses (7320) | 18% | Schedule II, S. No. 298 |
| Cotton fabric and ticking (5208 to 5212) | 5% | Schedule I, S. No. 334 |
| Polyester and other manmade fibre fabric (5407, 5408, 5512 to 5516) | 5% | Schedule I, S. No. 342 and 348 |
| Wadding, felt and nonwovens (5601 to 5603) | 5% | Schedule I, S. No. 349 to 351 |
| Raw cotton for razai filling (5201 to 5203) | 5% | Schedule I, S. No. 331 |
| Coconut coir fibre (5305) | Nil | 10/2025-CT(R), S. No. 147 |
Source: Notification 9/2025-Central Tax (Rate) and 10/2025-Central Tax (Rate), 17 September 2025
Two points follow for a mattress unit:
- You won't usually build up credit. Your inputs come in at 18%, 5% or nil, and your mattresses go out at 18%. Output tax is almost always more than input tax, so you pay the gap in cash each month. A refund claim under the inverted duty rules rarely applies.
- Rubberised coir sheets: check the HSN and rate on your supplier's invoice. Coir fibre itself is exempt, but a bonded sheet with rubber latex isn't plain fibre.
Example (one month, regular scheme): a foam mattress unit sells Rs 18,00,000 of mattresses (before GST), so output tax at 18% is Rs 3,24,000. It buys Rs 7,00,000 of foam chemicals and foam sheets (credit Rs 1,26,000 at 18%), Rs 2,50,000 of fabric (credit Rs 12,500 at 5%) and Rs 1,00,000 of springs (credit Rs 18,000 at 18%). Total credit is Rs 1,56,500, and the unit pays Rs 1,67,500 in cash with its GSTR-3B.
Do you need GST registration and e-way bills?
Two triggers, whichever comes first:
- Turnover. Section 22(1) of the CGST Act and Notification 10/2019-Central Tax set the limit for goods suppliers at Rs 40 lakh of aggregate turnover. Telangana is one of the States excluded from that limit, so a unit in Hyderabad registers at Rs 20 lakh.
- Inter-State sales. Section 24(i) makes registration compulsory for any inter-State taxable supply, whatever the turnover. One mattress shipped to a dealer in Karnataka is enough.
Example (Telangana unit, FY 2026-27): you've sold Rs 18 lakh of mattresses and pillows to households and shops in Hyderabad. You're under Rs 20 lakh, so registration is optional. In February a dealer in Bidar orders 20 mattresses. You must register before that sale. Our GST registration limit guide has the State list, and our GST registration service handles the application.
Once registered, Rule 138(1) of the CGST Rules requires an e-way bill before you move goods of consignment value above Rs 50,000. Mattresses are bulky and priced in thousands, so most dealer deliveries cross that line. Eight mattresses at Rs 9,000 each plus 18% GST come to Rs 84,960, so that truck needs an e-way bill. A single home delivery of a Rs 15,000 mattress doesn't. Our e-way bill guide walks through the portal.
Composition or regular scheme?
A mattress maker is a manufacturer for composition purposes. Under Rule 7 of the CGST Rules, a manufacturer pays 1% (0.5% CGST plus 0.5% SGST) of turnover in the State. Mattresses aren't on the list of goods whose makers are barred from composition. That list in Notification 14/2019-Central Tax covers ice cream, pan masala, tobacco, aerated water (added by Notification 43/2019-Central Tax) and fly ash bricks, building bricks and roofing tiles (added by Notification 4/2022-Central Tax).
Comparison
Composition vs Regular GST for a Mattress Maker
| Point | Composition (manufacturer) | Regular scheme |
|---|---|---|
| Tax rate | 1% of turnover in the State | 18% on mattresses, 5% on low-value quilts and coir pillows |
| Credit on foam, fabric, springs | Not allowed | Allowed |
| Your buyer's credit | Not available; you can't charge GST | Available on your tax invoice |
| Sales to other States | Not allowed (Section 10(2)(c)) | Allowed |
| Turnover limit | Rs 1.5 crore in the preceding year | None |
Source: CGST Act 2017, Sections 10(1) and 10(2)(c); Rule 7, CGST Rules 2017; Notification 14/2019-Central Tax
Example: a unit with Rs 1.2 crore turnover selling mostly to households pays 1% under composition, which is Rs 1,20,000 for the year, and gives up credit on its foam and fabric. That suits a unit selling direct to families in one town. It doesn't suit a maker supplying furniture showrooms, hotels or hostels, because those buyers want an 18% tax invoice so they can claim the credit. Composition also blocks you from selling to other States, which rules it out for most dealer-network units. Our composition scheme guide covers the other conditions.
Income tax: Section 44AD for mattress makers
Profit from making and selling mattresses is business income. If you're a resident individual, HUF or partnership firm (not an LLP), Section 44AD of the Income-tax Act 1961 lets you skip detailed profit accounts for FY 2025-26:
- Deemed profit: 6% of turnover received by bank transfer, UPI, cheque or other digital mode, and 8% of the rest. You can declare more.
- Turnover limit: Rs 2 crore, or Rs 3 crore if cash receipts are within 5% of turnover.
- No depreciation on top. Section 44AD(2) treats deductions under Sections 30 to 38 as already allowed, so your foaming machine, quilting machine and spring unit get no separate depreciation.
- Five-year lock: opt out after using 44AD and you can't return to it for the next five years (Section 44AD(4)).
From 1 April 2026 (FY 2026-27 onwards) the same scheme is in Section 58 of the Income-tax Act 2025, with the same 6% / 8% rates and Rs 2 crore / Rs 3 crore limits.
Step-by-Step Guide
Working Out Your 44AD Profit (Proprietor, FY 2025-26)
Split turnover by mode
Rs 1,10,00,000 total: Rs 1,04,00,000 by bank or UPI, Rs 6,00,000 in cash.
Check the limit
Cash is 5.45% of turnover, above 5%, so the limit is Rs 2 crore. Rs 1.1 crore is within it.
Apply the rates
6% of Rs 1.04 crore is Rs 6,24,000; 8% of Rs 6 lakh is Rs 48,000. Deemed profit: Rs 6,72,000.
Work out the tax
With no other income, Rs 6,72,000 is within Rs 12 lakh, so under the new regime the Section 87A rebate brings tax to nil.
Source: Income-tax Act 1961, Section 44AD; Income-tax Act 2025, Section 58
This unit missed the 5% cash condition by Rs 50,000. Had cash stayed within Rs 5.5 lakh (5% of Rs 1.1 crore), the Rs 3 crore limit would apply, which matters once turnover grows past Rs 2 crore. Pushing showroom customers to UPI also cuts the deemed rate on that money from 8% to 6%.
If your real margin is below 6%, for example in a year you bought a new foaming line, keep full books and claim actual profit with depreciation. Check the audit rules with your CA first. See our Section 44AD guide, the Section 87A rebate guide and the old vs new regime guide.
Missed the 31 August 2026 due date for AY 2026-27 (the date for business income without a tax audit)? A belated return can still be filed up to 31 December 2026 (Section 139(4)), with a late fee of Rs 5,000, or Rs 1,000 if total income is within Rs 5 lakh (Section 234F).
Common mistakes mattress makers make
- Billing coir mattresses at 5%. The 5% coir entry says "except coir mattresses". Coir mattresses are 18%.
- One rate for all quilts. A Rs 2,200 razai is 5%; a Rs 3,000 razai is 18%. Price decides it, piece by piece.
- Charging 5% on foam pillows. Only coir products and quilted textile products up to Rs 2,500 get 5%. Foam and fibre pillows are 18%.
- Moving dealer stock without an e-way bill. Most dealer loads cross Rs 50,000 once GST is added.
- Sending one order to another State before registering. Section 24(i) requires registration for any inter-State taxable sale.
- Claiming depreciation under 44AD. Section 44AD(2) already treats it as allowed.
How Tax Garden helps mattress and bedding makers
We check whether you need to register, get you registered through our GST registration service, and set up your item master so mattresses, coir pillows and quilts on either side of Rs 2,500 carry the right rate. Every month we file GSTR-1 and GSTR-3B through our GST return filing service. At year end we compare Section 44AD against actual profit and file your ITR through our ITR filing service. Call or WhatsApp us on 9640290977.
Related reading: income tax for furniture workshops, which covers the beds your mattresses go on, and GST on textiles and garments for the fabric side of your purchases.
