Steel HSN Code and GST Rate Details 2026

Understanding the Steel HSN Code is essential for manufacturers, traders, and construction businesses to ensure accurate GST compliance and invoicing. Steel products in India are classified under Chapters 72 and 73, covering everything from raw materials and scrap to TMT bars, sheets, pipes, and structural components.

Knowing the correct Steel HSN Code GST rate helps businesses apply the right tax slab, avoid penalties, and streamline input tax credit claims. In this guide, we break down steel classification and applicable GST rates for 2026 to help you stay compliant and financially efficient.

What is Steel HSN Code?

The steel HSN code refers to an internationally standardized identification number used for classifying steel and iron products for GST, customs, and invoicing.India uses HSN codes from Chapters 72 and 73 for steel products. These chapters cover everything from raw steel and scrap to TMT bars, rods, tubes, hollow profiles, and finished steel articles including sheets, fittings, and structures.​

Popular steel HSN codes include:

• 7204 hsn code: Steel scrap or remelting scrap
• 7214: Steel bars & rods (TMT, reinforced, twisted, deformed bars)
• 7303/7304: Tubes, pipes of iron or steel (cast iron, seamless, hollow profiles)
• 7301-7310: Articles of iron or steel such as sheet piling, rails, pipes, hollow sections, angles, shapes, and more.

GST Rates Applicable Under Steel HSN Codes

Key Notes:

• All standard, processed, and fabricated steel products now fall under 18% GST.
• No steel product attracts a reduced GST rate or compensation cess as of 2026.

(Rates per GST Council 2026 update; always check for the most recent notifications.)

GST Rates & Exemptions for Steel HSN Code (2026)

As of 2026, most steel products are taxed at a standard GST rate of 18%. This includes steel scrap, TMT bars, rods, tubes, pipes, hollow profiles, and other primary or processed steel items.

For fabricated, structural, or highly finished steel goods—such as sheet piling, beams, channels, and certain castings under Chapter 73—the GST rate also remains 18%. No steel products currently attract a reduced GST rate or compensation cess under the existing framework.

Key GST Rates on Steel Products (2026 Update)

• 18% GST: Most iron and steel products fall under the standard 18% GST slab. This includes steel scrap (HSN 7204), bars and rods (HSN 7213–7215), flat-rolled products, pipes and tubes (HSN 7303–7306), structural items, fittings, fabricated articles, and other goods classified under Chapters 72 and 73.

• Uniform Tax Structure: As per the latest GST framework, there is no separate 5% slab for standard steel products. The majority of primary and finished steel goods are taxed at 18%.

• No Compensation Cess: Steel goods are not subject to compensation cess under the current GST regime.

Businesses should always confirm the correct 6-digit or 8-digit HSN classification to ensure accurate GST application and proper input tax credit claims.

Table Notes

• Use the correct 4-digit or 8-digit HSN code for exact product billing.
• 5% GST is a major reduction—always check the latest GST Council notifications if your product is not basic bars/tubes/scrap.
• Articles, fittings, high-precision sections, and some structural steel still attract 18% GST unless specifically notified otherwise.​

What’s Included Under Steel HSN Codes?

The Steel HSN Code covers:

• Primary and processed steel: angles, rods, billets, blooms, plates, coils, tubes, and hollow sections.
• Structural and fabricated products: sheet piling, rails, beams, channels, TMT bars, and pipes (seamless, cast, or welded).
• Steel scrap, re-melted ingots, and byproducts of steel production.
• Fittings and fasteners: bolts, nuts, screws, and structural assemblies made from steel (mainly under Chapter 73).

Key Exemptions Under GST for Steel (2026 Update)

• No GST exemption for standard steel products; most items are taxed at 18%.
• No reduced 5% rate for intermediate or construction steel under Chapters 72 & 73.
• No compensation cess applies to steel.
• Highly processed goods, fabricated steel articles, railway/construction items, and other specialized steel products remain at 18% GST unless the government issues specific notifications.

Input Tax Credit (ITC) Rules for Steel GST

Registered businesses and manufacturers may claim Input Tax Credit (ITC) for GST paid on steel raw materials, scrap, transport, and processing.To claim ITC on steel:

• Maintain GST-compliant invoices (with the right steel hsn code)
• Use steel in the production or supply of taxable goods/services
• Ensure steel is not used for personal/exempted projects

Example:A builder purchases TMT bars (HSN 7214) for ₹10 lakh + 5% GST; ₹50,000 GST paid is fully claimable as ITC if used for a taxable construction project.​

GST on Steel Billing: Practical Scenarios (2026)

• Construction: Buys steel bars (HSN 7214, 18% GST) for building bridges.
• Manufacturer: Purchases steel scrap (HSN 7204, 18% GST) for re-melting and rolling.
• Fabricator: Acquires structural steel sheet piling (HSN 7301, 18% GST) for infrastructure projects; claims ITC.

Common Mistakes in Steel GST Filing

• Using a generic HSN code instead of the correct product-specific code (risking audit/denial of ITC)
• Charging 18% GST for goods that qualify under the new 5% reduced slab since Sep 2025
• Failing to keep invoices with proper HSN for large/long supply-chain projects
• Not separating fabricated steel products (which remain at 18%) from basic bars/scrap (now at 5%)

Conclusion

The steel hsn code ensures correct GST classification for all iron and steel materials and processed products in India.Following the September 2025 GST reform, most steel bars, rods, pipes, and scrap now attract 5% GST, with fabricated and finished steel articles mainly taxed at 18%.Proper HSN selection, clear GST invoicing, and timely ITC claims are essential for compliance and profit in the steel trade.​

Also check

Manufacturing Services HSN Code 9988 and GST Rates

FAQs: Steel HSN Code & GST Rate 2025

What is the steel HSN code?

Steel HSN codes fall under Chapter 72 and 73, e.g., 7204 for scrap, 7214 for bars and rods, 7303/7304 for pipes, and 7301–7306 for fabricated or structural steel products.

What is the steel HSN code GST rate in 2026?

As of 2026, all steel products are taxed at 18% GST, including scrap, bars, rods, pipes, tubes, and fabricated steel articles.

Can businesses claim ITC on steel GST?

Yes, businesses can claim Input Tax Credit (ITC) if the steel is used for taxable output and invoices are GST-compliant.

Are any steel products taxed at 5% GST now?

No. The previous 5% slab for scrap, TMT bars, rods, and pipes has been removed. All standard, processed, and fabricated steel products are now 18% GST.

How to ensure correct GST billing for steel?

Always use the exact HSN code, issue proper GST invoices, verify latest GST rates, and claim eligible ITC accurately.