--- title: "Iron New GST Rate 2026: 18% Rate on Iron Scrap, Iron Rods & Steel" description: "New GST rate on iron in 2026 is 18% on iron rods, bars, sheets and all iron products. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/iron/" author: "Madan Murari" published: "2025-05-15T10:39:16.000Z" category: "GST Rates" --- - The GST rate for iron and steel products in India is generally **18%**, depending on the applicable HSN classification. - Common iron products such as ingots, billets, rods, bars, wires, and many steel products generally attract **18% GST**. - GST rates may vary for specific products based on their HSN code and classification. - Businesses can claim **Input Tax Credit (ITC)** on eligible purchases of iron and steel products, subject to applicable GST conditions. - Using the correct HSN code helps businesses ensure accurate invoicing and GST compliance. # New GST Rate for Iron in India: Categories and Applications Iron is one of the most widely used materials in industries like construction, manufacturing, and infrastructure. Whether it’s raw iron, rods, or scrap, knowing the correct **iron gst rate** helps in proper billing, tax compliance, and cost planning. Let’s break down how GST applies to different forms of iron in India. ## GST Rate on Iron in India Iron and steel products are generally taxed at **18% GST** in India, depending on their HSN classification. Products such as iron ingots, billets, rods, bars, wires, stainless steel products, and iron and steel scrap generally fall under this rate category. | Iron Product | HSN Code | New GST Rate | | --- | --- | --- | | Iron and non-alloy steel (ingots, billets) | 7206–7207 | **18%** | | Iron rods, bars, and wires | 7213–7215 | **18%** | | Stainless steel bars/rods | 7222 | **18%** | | Scrap of iron and steel | 7204 | **18%** | ## Old GST Classification and HSN Codes for Iron ### (Old GST Rates – Applicable Until 21st September) Under GST, iron and steel products are categorized under Chapter 72 of the [**HSN code**](https://busy.in/hsn/) system. The tax rate depends on whether the product is raw, processed, or scrap. | Iron Product | HSN Code | Old GST Rate | | --- | --- | --- | | Iron and non-alloy steel (ingots, billets) | 7206–7207 | 18% | | Iron rods, bars, and wires | 7213–7215 | 18% | | Stainless steel bars/rods | 7222 | 18% | | Scrap of iron and steel | 7204 | 18% | So, whether you’re dealing in raw material or fabricated goods, the **gst on iron** is mostly set at 18%. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## GST on Iron Rod Iron rods are crucial in the construction industry, especially for reinforcing concrete. The **gst on iron rod** is 18%, making it one of the key taxable construction inputs. - **iron rod gst rate** is the same whether you purchase TMT bars, steel rods, or plain iron rods. - These items are generally listed under **HSN Code 7214**. - This rate has remained consistent and is applied at the point of sale or invoice generation. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) Live Demo Available Today ## Raise Purchase Orders to Iron Suppliers for Stock Replenishment Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST on Iron Scrap Iron scrap is also a significant part of the industry, used for recycling and manufacturing new products. - The **iron scrap gst rate** is 18%. - It falls under **HSN Code 7204**, which includes both ferrous waste and scrap. - Despite being a recycled product, **gst on iron scrap** is charged at the same rate as new iron materials. Buyers and sellers must ensure proper documentation and GST invoicing. ## Input Tax Credit for Iron-Related Purchases Businesses dealing in construction, manufacturing, or trading of iron can claim [Input Tax Credit (ITC)](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on: - Purchases of raw iron, rods, or scrap - Transport and logistics services - Packaging and handling charges To claim ITC, ensure: - The supplier is GST-registered - The invoice has a valid GST number and HSN code - The tax has been paid and reported in returns **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) ## Iron and Construction Industry: GST Impact - **Cost predictability:** Fixed rates help builders and contractors plan budgets - **Compliance burden:** All iron suppliers and buyers above the GST threshold must register and file returns - **ITC advantage:** Claiming ITC helps offset input costs, improving cash flow for registered businesses Understanding the correct **gst on iron**, rods, and scrap helps manufacturers, traders, and builders price their materials right, stay tax-compliant, and benefit from input credits. ## About the author **Madan Murari** Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone! ## Frequently asked questions ### What is the GST rate on iron products in India? The general iron GST rate is **18%**, applicable to most forms like rods, bars, and billets. ### What is the GST on iron rod? The GST on iron rod is **18%**, under HSN codes 7213 to 7215. ### What is the GST rate on iron scrap? Iron scrap GST rate is also **18%**, under HSN Code 7204. ### Can I claim ITC on iron and steel purchases? Yes. If you're registered under GST and use iron for business, you can claim Input Tax Credit. ### Is there any GST exemption for iron products? No. As of now, iron and steel products are not exempt under GST. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)