Binding Wire HSN Code: Classification for Steel and Iron Binding Wire
Binding wire is widely used in construction sites, fabrication shops and industrial units to tie steel bars, mesh and other materials. It is usually made of mild steel and supplied in coils or rolls. For builders, hardware traders and manufacturers, knowing the correct binding wire HSN code is important for accurate GST billing and return filing.
In GST, binding wire is treated as a product of iron or steel. It is grouped under the chapter that covers iron and steel products, including wire, rods, bars and similar items. The exact HSN code can change based on whether the wire is stainless steel, mild steel or a special alloy, but the GST rate is usually the same for most common grades used in construction.
What is the HSN Code for Binding Wire?
Binding wire made of mild steel is commonly classified under the HSN heading for wire of iron or non alloy steel. Stainless steel binding wire and alloy steel wire have separate codes under the same chapter. Hardware traders typically deal in mild steel binding wire, which is used for tying reinforcement bars and other construction work.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 7217 | Wire of iron or non alloy steel | Mild steel binding wire in coils or rolls | 18% |
| 7223 | Wire of alloy steel, other than stainless steel | High tensile alloy steel binding wire | 18% |
| 7222 | Wire of stainless steel | Stainless steel binding wire for special applications | 18% |
| 7312 | Stranded wire, ropes and cables of iron or steel | Steel strand and wire rope used with binding work | 18% |
How Steel Binding Wire is Classified under HSN?
Mild steel binding wire used on construction sites comes in thin gauges and is supplied in bundles or coils. It is generally placed under the HSN line for wire of iron or non alloy steel. The diameter of the wire and the type of coating, such as black annealed or galvanised, does not usually change the basic HSN code, although detailed product descriptions should be given on the invoice.
If the binding wire is made from stainless steel or high alloy steel, the classification moves to the stainless steel or alloy steel wire lines. In practice, such variants are less common in day to day construction work and are mainly used in special projects or industries.
HSN Code for Binding Wire Rolls and Coils
Binding wire is mostly sold as coils or rolls. The unit of sale can be kilogram or coil, but the HSN code remains the same. Traders should ensure that the description on the invoice mentions the diameter, approximate weight per coil and surface finish, for example black annealed or galvanised. This helps avoid confusion if different grades of wire are stocked under the same code.
When binding wire is supplied together with TMT bars or structural steel in one contract, each item should still be shown separately with its own HSN code and rate. This keeps the tax calculation clear and supports accurate input tax credit claims for buyers.
GST Implications on Binding Wire Products
Binding wire of iron or steel generally attracts GST at the standard rate of eighteen percent. This rate applies to mild steel binding wire as well as most alloy and stainless steel wire used for binding work. There are usually no special exemptions for binding wire used in construction.
Registered contractors and builders can claim input tax credit on GST paid on binding wire, as it is used in the course of business. For this purpose, invoices must show the correct HSN code and GST amount. Any mismatch between purchase invoices and GSTR returns can cause issues during departmental review.
Conclusion
Binding wire plays a small but important role in construction and fabrication work. Although it is a low value item, correct HSN classification helps in clean billing and smooth GST compliance. By using the proper binding wire HSN code, mentioning clear descriptions and applying the right GST rate, businesses can avoid disputes and maintain accurate records for audits and tax assessments.
I’m CA Mohammad Abid Khan, a Chartered Accountant based in Varanasi with 10 years of experience. I specialize in GST and Income Tax, helping individuals and businesses stay compliant and optimize their taxes. I hold B.Com and M.Com degrees and enjoy simplifying finance through practical, easy-to-understand content.
Frequently Asked Questions
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What is the common HSN code for mild steel binding wire?
Mild steel binding wire used in construction is generally classified under HSN code 7217, which covers wire of iron or non alloy steel.
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Does the GST rate change for different gauges of binding wire?
No. Different gauges of binding wire normally attract the same GST rate of eighteen percent. The gauge does not change the HSN code in most cases.
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How should binding wire appear on a construction invoice?
Binding wire should be shown as a separate line item with its HSN code, quantity and rate. It should not be merged into the value of steel bars or other materials.
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Is input tax credit available on GST paid on binding wire?
Yes. Contractors and builders who are registered under GST can claim input tax credit on GST paid on binding wire, provided it is used for business purposes and proper invoices are available.
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Does galvanised binding wire have a different HSN code?
Galvanised binding wire is usually classified under the same HSN code for steel wire. The coating does not normally change the basic code, but the invoice description should mention that the wire is galvanised.