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    Table of Contents

    GST rates on steel products depend on the kind of steel product that you are looking to source. Steel products are usually under the 18% bracket or the 12% bracket. This would include GST on steel bars, GST rate on steel TMT bars, etc.

    GST rates on steel products are devised by the GST council. The rates are subject to constant revision according to the changing governments in India. Since the iron and steel sector are major contributors to the economic growth, the government has taken several tax measures to ensure the prosperity of the sector.

    GST rates on steel products

    Have a look at the GST rates of steel products as published by the Central Board of Indirect Taxes and Customs (CBIC) along with their HSN code:

    HSN code Steel products CGST Rate SGST/UTGST Rate IGST Rate
    7204 Ferrous waste  and  scrap; remelting scrap

    ingots of iron or steel

    9% 9% 18%
    7205 Granules    and    powders, of    pig    iron, spiegeleisen, iron or steel 9% 9% 18%
    7206

     

    Iron and non-alloy steel in ingots or other primary forms  (excluding iron  of  heading

    7203)

    9% 9% 18%
    7207

     

    Semi-finished   products  of   iron  or   non-

    alloy steel

    9% 9% 18%
    7208 to 7212

     

     

    All  flat-rolled  products  of  iron  or  non-

    alloy steel

    9% 9% 18%
    7213 to 7215

     

    All bars and rods, of iron or non-alloy steel 9% 9% 18%
    7216 Angles, shapes and sections of iron or non-

    alloy steel

    9% 9% 18%
    7217 Wire of iron or non-alloy steel 9% 9% 18%
    7218 Stainless  steel  in  ingots  or  other  primary forms;  semi-finished  products  of  stainless

    steel

    9% 9% 18%
    7219, 7220 All flat-rolled products of stainless steel 9% 9% 18%
    7221, 7222 All bars and rods, of stainless steel 9% 9% 18%
    7223 Wire of stainless steel 9% 9% 18%
    7224 Other alloy steel in ingots or other primary forms;   semi-finished   products   of   other

    alloy steel

    9% 9% 18%
    7225, 7226 All flat-rolled products of other alloy steel 9% 9% 18%
    7227, 7228 All bars and rods of other alloy steel 9% 9% 18%
    7229 Wire of other alloy steel 9% 9% 18%
    7301 Sheet piling of iron or steel, whether or not drilled,  punched  or  made  from assembled elements;    welded    angles,    shapes    and

    sections, of iron or steel

    9% 9% 18%
    7302 Railway   or   tramway   track   construction material of iron or steel, the following: rails, checkrails and   rack   rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (crossties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips bedplates, ties and other material  specialised for jointing or fixing rails 9% 9% 18%
    7304 Tubes, pipes      and hollow     profiles, seamless, of iron (other than cast iron) or

    steel

    9% 9% 18%
    7305 Other   tubes   and   pipes (for   example, welded, riveted    or    similarly    closed), having circular cross‑sections, the external diameter of whichexceeds 406.4 mm, of iron or steel 9% 9% 18%
    7306 Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 9% 9% 18%
    7307 Tube    or    pipe    fittings (for    example,

    couplings, elbows, sleeves), of iron or steel

    9% 9% 18%
    7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including   spring   washers)  and   similar

    articles, of iron or steel

    9% 9% 18%

    Also read: What are the tax benefits on a business loan?

    For a full list of GST rates on steel items please visit the CBIC website.

    From the above table you can note that all the steel products come under the GST bracket of 18%. State and the central government tax for steel products is 9% each.

    Given below is an explanation of the terms given in the table above for better understanding:

    • CGST

    CGST is Central Goods and Services Tax and is a tax levied on intrastate supplies of goods and services by the Central Government.

    • SGST

    SGST is State Goods and Services Tax which is the tax to be given to the state government. Under GST, SGST is collected on intrastate supplies of goods and services and the SGST tax rate is equal to CGST tax rate collected. This is collected along with CGST.

    • UTGST

    UTGST stands for the Union Territory Goods and Services Tax. It is the goods and services tax levied by the governments in Union Territories. Union Territories of Delhi and Puducherry fall under SGST law as they have their own legislature.

    • IGST

    IGST is Integrated Goods and Services Tax, levied on all interstate supplies of goods and/or services. It is applicable to imports and exports.

    GST on steel bars

    If you look at the table above you can see three different types of steel bars mentioned:

    • All bars and rods of iron or non-alloy steel
    • All bars and rods of stainless steel
    • All bars and rods of other alloy steel

    All these categories belong to the same tax bracket of 18%. Therefore, interstate supply of TMT steel bars is charged an 18% IGST and intrastate supply is also charged 18%. This is divided equally between the central and the state governments.

    GST rate on steel TMT bars – 18%

    Importance of HSN code

    The full form of HSN is Harmonised System of Nomenclature code. This is a 6-digit code that classifies various products. Manufacturers and suppliers indicate HSN code on their tax invoices and exporters and importers mention these codes in their import and export documents.

    HSN classification is used for tax purposes to identify the rate of tax applicable to a specific product. This makes GST filing easy for businesses as a code for products eliminates the need of entering details of the products.

    Businesses with a turnover of less than ₹1.5 Crore do not need to adopt HSN codes for their commodities. Companies with turnover between ₹1.5 crore and ₹5 Crore use two-digit HSN codes for their commodities.

    If you are looking for business growth opportunities do visit Tata nexarc. We provide instant business loans, logistics services, etc., tailored to the needs of small businesses. We can even help you find suitable tenders and help you win them.

    Also read: Tax benefits and incentives for MSMEs in India