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Key Highlights
- Iron and steel articles come under steel HSN code Chapter 72 under raw materials, semi-finished, and final products.
- Iron and steel both have a tax rate between 5% and 18%, depending on product type and treatment.
- There may be lower taxation or exemption depending on the nature of categories such as raw iron ore under certain government policies.
- Iron and steel find extensive applications in construction, vehicle manufacturing, and heavy machinery, which makes classification under tax critical for various industries.
Iron and steel are some of the most critical materials applied in different industries, such as construction, automotive, manufacturing, and infrastructure development.The steel HSN code and GST (goods and services tax) classification of iron and steel are very important to manufacturers, traders, and companies that handle these materials.Chapter 72 of the steel HSN code deals with iron and steel products, grouping them according to their processing and application. Familiarity with the relevant GST rates and HSN codes is important for ensuring tax compliance, making optimal pricing decisions, and taking advantage of available tax credits. Also Read - Find out the meaning of Input Tax Credit under GST
GST Rates and HSN Codes for Iron and Steel
The above table provides us a detailed description of the product along with the HSN code and the GST rate under Chapter 72:
| HSN Code | Related Export / Import HSN Code | Products Description | Rates (%) |
| 7201 | 72011000, 72012000, 72015010, 72015090 | Pig iron and spiegeleisen in pigs, bricks, blocks or other basic forms | 18% |
| 7202 | 72021100, 72021900, 72022100, 72022900, 72023000, 72024100, 72024900, 72025000, 72026000, 72027000, 72028000, 72029100, 72029200, 72029300, 72029911, 72029912, 72029913, 72029914, 72029915, 72029916, 72029921, 72029922, 72029931, 72029932, 72029990 | Ferro-alloys | 18% |
| 7203 | 72031000, 72039000 | Ferrous goods derived by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron with a minimum purity by weight of 99.94%, in lumps, pellets or similar forms. | 18% |
| 7204 | 72041000, 72042110, 72042190, 72042910, 72042920, 72042990, 72043000, 72044100, 72044900, 72045000 | Ferrous waste and scrap; remelting scrap iron or steel ingots | 18% |
| 7205 | 72051011, 72051012, 72051019, 72051021, 72051022, 72051029, 72051090, 72052100, 72052910, 72052990 | Granules and powders from pig iron, spiegeleisen, iron, or steel | 18% |
| 7206 | 72061010, 72061020, 72061090, 72069011, 72069012, 72069019, 72069091, 72069092, 72069099 | Iron and non-alloy steel in ingots or other main forms (excluding iron under category 7203) | 18% |
| 7207 | 72071110, 72071120, 72071130, 72071190, 72071210, 72071220, 72071230, 72071290, 72071910, 72071920, 72071990, 72072010, 72072020, 72072030, 72072090 | Semi-finished items in iron or non-alloy steel | 18% |
| 7208 | 72081000, 72082510, 72082520, 72082530, 72082540, 72082590, 72082610, 72082620, 72082630, 72082640, 72082690, 72082710, 72082720, 72082730, 72082740, 72082790, 72083610, 72083620, 72083630, 72083640, 72083690, 72083710, 72083720, 72083730, 72083740, 72083790, 72083810, 72083820, 72083830, 72083840, 72083890, 72083910, 72083920, 72083930, 72083940, 72083990, 72084010, 72084020, 72084030, 72084040, 72084090, 72085110, 72085120, 72085130, 72085140, 72085190, 72085210, 72085220, 72085230, 72085240, 72085290, 72085310, 72085320, 72085330, 72085340, 72085390, 72085410, 72085420, 72085430, 72085440, 72085490, 72089000 | All flat-rolled items from iron or non-alloy steel | 18% |
| 7209 | 72091510, 72091520, 72091530, 72091590, 72091610, 72091620, 72091630, 72091690, 72091710, 72091720, 72091730, 72091790, 72091810, 72091820, 72091830, 72091890, 72092510, 72092520, 72092530, 72092590, 72092610, 72092620, 72092630, 72092690, 72092710, 72092720, 72092730, 72092790, 72092810, 72092820, 72092830, 72092890, 72099000 | All flat-rolled products of iron or non-alloy steel | 18% |
| 7210 | 72101110, 72101190, 72101210, 72101290, 72102000, 72103010, 72103090, 72104100, 72104900, 72105000, 72106100, 72106900, 72107000, 72109010, 72109090 | All flat-rolled items from iron or non-alloy steel | 18% |
| 7211 | 72111300, 72111410, 72111420, 72111430, 72111440, 72111450, 72111460, 72111490, 72111910, 72111920, 72111930, 72111940, 72111950, 72111960, 72111990, 72112310, 72112320, 72112330, 72112340, 72112350, 72112390, 72112910, 72112920, 72112930, 72112940, 72112950, 72112960, 72112990, 72119011, 72119012, 72119013, 72119090 | All flat-rolled items from iron or non-alloy steel | 18% |
| 7212 | 72121010, 72121090, 72122010, 72122090, 72123010, 72123090, 72124000, 72125010, 72125020, 72125090, 72126000 | All flat-rolled items from iron or non-alloy steel | 18% |
| 7213 | 72131010, 72131090, 72132010, 72132020, 72132090, 72139110, 72139120, 72139190, 72139910, 72139920, 72139990 | All bars and rods of iron or non-alloy steel | 18% |
| 7214 | 72141010, 72141090, 72142010, 72142090, 72143000, 72149110, 72149190, 72149910, 72149990 | All bars and rods of iron or non-alloy steel | 18% |
| 7215 | 72151000, 72155010, 72155090, 72159010, 72159020, 72159090 | All bars and rods of iron or non-alloy steel | 18% |
| 7216 | 72161000, 72162100, 72162200, 72163100, 72163200, 72163300, 72164000, 72165000, 72166100, 72166900, 72169100, 72169910, 72169920, 72169930, 72169940, 72169990 | Angles, forms, and sections in iron or non-alloy steel | 18% |
| 7217 | 72171010, 72171020, 72171030, 72172010, 72172020, 72172030, 72173010, 72173020, 72173030, 72179011, 72179012, 72179013, 72179019, 72179091, 72179092, 72179093, 72179099 | Wire in iron or non-alloy steel | 18% |
| 7218 | 72181000, 72189100, 72189910, 72189990 | Stainless steel ingots and various primary forms; semi-finished stainless steel goods | 18% |
| 7219 | 72191111, 72191112, 72191190, 72191200, 72191300, 72191400, 72192111, 72192112, 72192121, 72192122, 72192131, 72192132, 72192141, 72192142, 72192190, 72192211, 72192212, 72192219, 72192291, 72192292, 72192299, 72192310, 72192320, 72192390, 72192411, 72192412, 72192413, 72192419, 72192421, 72192422, 72192423, 72192429, 72192490, 72193111, 72193112, 72193121, 72193122, 72193190, 72193210, 72193220, 72193290, 72193310, 72193320, 72193390, 72193410, 72193420, 72193490, 72193510, 72193520, 72193590, 72199011, 72199012, 72199013, 72199090 | All flat-rolled stainless steel | 18% |
| 7220 | 72201110, 72201121, 72201122, 72201129, 72201190, 72201210, 72201221, 72201222, 72201229, 72201290, 72202010, 72202021, 72202022, 72202029, 72202090, 72209010, 72209021, 72209022, 72209029, 72209090 | All flat-rolled stainless steel | 18% |
| 7221 | 72210011, 72210012, 72210019, 72210090 | All bars and rods of stainless steel | 18% |
| 7222 | 72221111, 72221112, 72221119, 72221191, 72221192, 72221199, 72221911, 72221912, 72221919, 72221991, 72221992, 72221999, 72222011, 72222012, 72222019, 72222091, 72222092, 72222099, 72223011, 72223012, 72223019, 72223091, 72223092, 72223099, 72224010, 72224020 | All bars and rods of stainless steel | 18% |
| 7223 | 72230010, 72230091, 72230092, 72230099 | Wire of stainless steel | 18% |
| 7224 | 72241000, 72249010, 72249020, 72249030, 72249040, 72249091, 72249099 | Other alloy steel ingots or other fundamental forms; semi-finished items made from other alloy steel | 18% |
| 7225 | 72251100, 72251900, 72253010, 72253090, 72254011, 72254012, 72254013, 72254019, 72254020, 72254030, 72255010, 72255020, 72255030, 72259100, 72259200, 72259900 | All flat-rolled goods are made from different alloy steel | 18% |
| 7226 | 72261100, 72261900, 72262011, 72262012, 72262021, 72262022, 72262030, 72269110, 72269120, 72269130, 72269190, 72269210, 72269220, 72269230, 72269910, 72269920, 72269930, 72269940, 72269951, 72269952, 72269953, 72269960, 72269990 | All flat-rolled goods are made from different alloy steel | 18% |
| 7227 | 72271000, 72272000, 72279010, 72279020, 72279030, 72279040, 72279050, 72279060, 72279090 | All bars and rods are made of other alloy steel. | 18% |
| 7228 | 72281010, 72281090, 72282000, 72283011, 72283019, 72283021, 72283022, 72283023, 72283024, 72283029, 72284000, 72285010, 72285090, 72286011, 72286012, 72286091, 72286092, 72286093, 72286094, 72286099, 72287011, 72287012, 72287021, 72287022, 72288010, 72288020, 72288090 | All bars and rods are made of other alloy steel. | 18% |
| 7229 | 72292000, 72299011, 72299012, 72299013, 72299014, 72299015, 72299016, 72299021, 72299022, 72299023, 72299031, 72299032, 72299033, 72299034, 72299040, 72299051, 72299052, 72299053, 72299054, 72299059, 72299060, 72299070, 72299090 | Wire made from other alloy steel | 18% |
Also Read - Know what is Output Tax Credit under GST
Knowing the HSN Codes Under Chapter 72
The GST classification of iron and steel is an important aspect of tax compliance and pricing in various industries such as construction, automotive, and heavy engineering.The majority of iron and steel products are taxed at 18%, but some basic infrastructure-related items are subject to a reduced 5% GST rate. Companies handling these products must remain informed about GST regulations to maximise tax credits and maintain proper compliance.To know your GST liability, you can use the online GST calculator. You have to enter simple details and this calculator will find out the applicable GST payable for easier return filing.Knowledge of the GST rates and HSN codes assists manufacturers, traders, and industrial consumers in making sound financial decisions, managing production costs, and keeping the market prices competitive.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate on raw iron ore?
The GST rate on raw iron ore is 5% to maintain affordability for industries that produce finished goods out of iron ore.
What is the GST rate on scrap iron and steel?
The GST rate on ferrous waste and scrap is 18% since it is a recyclable industrial waste.
Are all products of iron and steel charged at the same GST rate?
No, although the majority of iron and steel items are subject to an 18% GST rate, certain particular items, such as railway track materials, are subject to a lower rate of 5%.
What is the HSN code for stainless steel sheets?
Stainless steel sheets and other such items fall under steel HSN codes 7218-7223 and are subject to an 18% GST rate.
Is GST payable on imported iron and steel?
Yes, iron and steel imported products are charged the same GST rates as local products. Also, customs duties and other charges can be applicable.
Can iron and steel be charged with an input tax credit (ITC) on purchase?
Yes, businesses can claim ITC on the GST paid on iron and steel purchases if the materials are used for business-related manufacturing or resale.
Is GST payable on iron rods for use in construction?
Yes, iron rods and other construction-related steel products fall under steel HSN code Chapter 72 and attract an 18% GST rate.
How does GST affect small steel traders?
Small traders dealing in iron and steel must comply with GST regulations, register under GST, and collect taxes accordingly. They can also claim ITC to reduce their tax burden.
Are galvanised iron products taxed differently?
No, galvanised steel and iron products are usually in the 18% GST category, just like other processed steel products.
How does GST affect the price of infrastructure projects?
As most iron and steel products are subject to 18% GST, infrastructure projects tend to have higher material costs. Nevertheless, ITC benefits minimise the overall tax burden on developers and contractors.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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