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The steel industry is the backbone of infrastructure and construction in India. With the introduction of the Goods and Services Tax (GST), the tax structure for steel has become much simpler and more uniform. In this blog, we’ll break down the steel GST rate, cover key product categories, HSN codes, and answer common questions — all in simple terms.
Most steel products attract a GST rate of 18%. This unified rate simplifies tax compliance for manufacturers, traders, and end-users. Whether it’s raw steel, TMT bars, or pipes, the GST remains consistent across categories.
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Below is a table showing GST rates for major steel-related items along with their HSN codes:
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 7204 | Steel scrap or remelting scrap ingots | 18% |
| 7214 | Steel bars and rods, including twisted and deformed bars | 18% |
| 7303 | Tubes, pipes, and hollow profiles of cast iron | 18% |
| 7304 | Tubes and hollow profiles, seamless, of iron or steel | 18% |
These fall under the broader category of GST on steel and attract the same 18% rate regardless of form.
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TMT bars are crucial for construction projects. These are classified under HSN code 7214 along with other steel rods and attract an 18% GST. Whether buying or selling, the rate remains uniform and simple.
Steel scrap plays an important role in recycling and raw material supply. It is classified under HSN code 7204 and is taxed at 18%. This simplifies tax calculations for scrap traders and recyclers.
Yes, registered businesses can claim Input Tax Credit on:
These provisions make the steel supply chain more tax-efficient and help improve working capital.
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The GST on steel is straightforward — most products, including bars, pipes, and scrap, fall under the 18% slab. Clear HSN codes and input credit eligibility make GST compliance easier for this sector.
Whether you’re a small dealer or a large manufacturer, understanding GST rates on steel can help with smooth operations and better tax planning.
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BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.