New GST Rate for Iron in India: Categories and Applications
- 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.
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.
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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% |
Iron Product
HSN Code
New GST Rate
Iron Product
HSN Code
New GST Rate
Iron Product
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New GST Rate
Iron Product
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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 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% |
Iron Product
HSN Code
Old GST Rate
Iron Product
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Iron Product
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Iron Product
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So, whether you’re dealing in raw material or fabricated goods, the gst on iron is mostly set at 18%.
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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.
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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) 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
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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.
