--- title: "Steel New GST Rate 2026: 18% Rate on Steel Bars, Rods & Iron" description: "New GST rate on steel in 2026 is 18% on all steel products including bars, rods and sheets. Apply the correct GST rate automatically with Busy on every invoice." canonical: "https://busy.in/gst-rates/steel/" author: "Vineet Goyal" published: "2025-05-15T07:13:01.000Z" category: "GST Rates" --- - Most steel products, including **TMT bars, steel rods, bars, and tubes**, attract **18% GST**. - Steel scrap and specific steel products are taxed according to their applicable HSN classification. - Businesses can claim eligible **Input Tax Credit (ITC)** on raw materials, transport, and processing costs. - GST compliance includes registration, proper invoicing, and timely return filing. - Correct HSN codes and ITC records help streamline tax compliance in the steel industry. # New GST Rate on Steel and Related Products 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 hsn code and GST rate**, cover key product categories, HSN codes, and answer common questions — all in simple terms. ## **What is the GST on Steel?** Most steel products attract a **GST rate of 18%**. This unified tax rate applies to commonly used steel products such as **raw steel, TMT bars, rods, pipes, and tubes**. Some specific iron and steel products may have different GST rates depending on their **HSN classification**. ## **GST Rate on Steel Products in India** Under India’s GST regime, most steel products fall under the **18% GST slab**. The rates apply to common steel categories such as **TMT bars, bars, rods, pipes, and tubes**. The GST structure for commonly used steel products remains unchanged after the updates effective from **22 September 2025**, and these items do not attract any compensation cess. ## New GST Rate Table for Steel Products | HSN Code | Product Description | GST Rate (After 22 Sept 2025) | GST Rate (Before 22 Sept 2025) | | --- | --- | --- | --- | | 7204 | Steel scrap or remelting scrap ingots | **18%** | **5%** | | 7214 | Steel bars and rods, including twisted and deformed bars | **18%** | **18%** | | 7303 | Tubes, pipes, and hollow profiles of cast iron | **18%** | **18%** | | 7304 | Tubes and hollow profiles, seamless, of iron or steel | **18%** | **18%** | Steel products are taxed according to their applicable HSN classification. Common steel bars, rods, pipes, and tubes attract **18% GST**, while certain categories such as steel scrap may attract different rates. ## **How to Calculate GST on Steel** Calculating GST on steel products depends on the applicable **HSN classification**. Most commonly used steel products, such as rods, bars, pipes, and tubes, attract **18% GST**, while certain categories like steel scrap may have different rates. ## **GST Calculation Formula** GST Amount = (Product Price × GST Rate) ÷ 100 Final Price = Product Price + GST Amount ## **Example Calculation** Suppose the price of **steel rods is ₹50,000**. - GST Rate = **18%** - GST Amount = ₹50,000 × 18% = **₹9,000** **Final price including GST = ₹59,000** Live Demo Available Today ## Raise Supplier POs for Steel Before Construction Season Trusted by 6,00,000+ Users 4.6 Google Rating ## **GST on TMT Bars and Steel Rods** TMT bars are widely used in the construction of buildings, bridges, and infrastructure. They fall under the same HSN code 7214 as other steel rods and bars and carry a GST rate of 18%. So if you’re buying or selling **TMT bars**, the tax you’ll pay or charge is straightforward — **18% GST on steel bar** products. ## **GST on Steel Scrap** Steel scrap is vital in recycling and the production of new steel. It is categorized under [**HSN code 7204**](https://busy.in/hsn/sub-chapter-7204/) and attracts an **18% GST**. This helps streamline the tax process for scrap dealers and recyclers as well. ## **Can Businesses Claim Input Tax Credit (ITC)?** Yes, if you’re a registered business dealing with steel products, you can [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on: - Purchase of raw materials (e.g., steel scrap, billets) - Transport services - Processing costs like cutting, shaping, or galvanizing This makes the **gst on steel** business-friendly, as it allows for tax offsets and improves cash flow. **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) ## **GST Compliance for Steel Traders and Manufacturers** If you’re in the steel industry, here’s what you need to ensure: - [**GST registration**](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) if your turnover exceeds the threshold - Proper invoicing with HSN codes and applicable GST - Filing monthly [**GST returns**](https://busy.in/gst/gst-returns/) ( [**GSTR-1**](https://busy.in/gst/guide-to-gstr-1/) and [**GSTR-3B**](https://busy.in/gst/a-guide-to-gstr-3b-what-is-gstr-3b/) ) - Maintaining books of accounts with UPI and other payment records (if digital payments are accepted) ## **Conclusion** The **steel GST rate** depends on the product category and applicable HSN classification. Common steel products, including **steel bars, TMT bars, and pipes**, attract **18% GST**, while specific categories such as **steel scrap** may attract different rates. With clear HSN classifications and proper Input Tax Credit records, businesses can maintain GST compliance and streamline operations in the steel sector. Understanding the **steel GST rate** is essential for staying compliant and managing tax obligations effectively. Whether you’re a small trader or a large manufacturer, keeping accurate GST records helps your business run smoothly. ## About the author **Vineet Goyal** I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand. ## Frequently asked questions ### What is the standard steel GST rate? The standard GST rate on most steel items, including **bars, rods, and pipes**, is **18%**. However, certain categories such as **steel scrap may attract a different GST rate based on their HSN classification**. ### Is the GST rate different for different steel types? Yes. GST on steel depends on the **product category and HSN classification**. Most finished steel products like bars, rods, and pipes attract **18% GST**, while certain categories such as steel scrap may have different GST rates. ### What is the gst on steel bar used in construction? Steel bars, including TMT and twisted bars, fall under HSN code 7214 and attract 18% GST. ### Do I need to mention HSN codes on invoices? Yes, if your turnover exceeds the prescribed limit. Including HSN codes ensures GST compliance and smooth audits. ### Can I claim GST credit for steel scrap purchases? Yes, if you're a GST-registered business using steel scrap as manufacturing input, you can claim input tax credit. ## 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/)