Steel HSN Code and GST Rate Details 2025

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: 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 & Exemptions for Steel HSN Code

As of 22 September 2025, most steel products have a 5% GST rate.This new slab, down from the previous 18%, applies to steel scrap, TMT bars, rods, tubes, pipes, and hollow profiles, whether raw or processed.​For fabricated, structural, or highly finished steel goods (like building components or certain castings in Chapter 73), the standard GST rate is 18%.​

Key GST rates (2025 update):

• 5% GST: Steel scrap (7204), steel bars and rods (7214), seamless pipes (7304), cast iron tubes/pipes (7303)—as per new policy
• 18% GST: Most fabricated articles, steel rails, piling, fittings, shapes, structural products, and specialty hollow profiles (Chapter 73)
• No compensation cess on steel goods

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.​

GST Rates Applicable Under Steel HSN Codes

(Rates per GST Council 2025 update; always check for the most recent notifications.)​

What’s Included Under Steel HSN Codes?

The steel hsn code covers:

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

Key Exemptions Under GST for Steel

• No GST exemption for standard steel products after September 2025.
• Reduced 5% rate for essential construction/intermediate steel in chapters 7204, 7214, 7303, and 7304 only.
• No compensation cess on steel.
• Highly processed goods, articles of iron/steel, and certain railway/construction items stay at 18% unless otherwise notified.​

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

1. Construction: Buys steel bars (HSN 7214, 5% GST) for building bridges.
2. Manufacturer: Purchases steel scrap (HSN 7204, 5% GST) for re-melting and rolling.
3. 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 are Chapter 72/73 entries: e.g., 7204 for scrap, 7214 for bars, 7303/7304 for pipes.

What is the steel hsn code gst rate in 2025?

5% for most bars, rods, pipes, tubes, and steel scrap; 18% for fabricated or finished steel articles.

Can businesses claim ITC on steel GST?

Yes, if invoices are GST-compliant and the steel is used in taxable output.

Are all steel articles at 5% GST now?

No, basic construction/intermediate steel is 5%; finished/fabricated steel (rails, sections, fittings) is 18%.

How to ensure correct GST billing for steel?

Always use exact HSN, issue proper GST invoices, confirm latest rates, and claim eligible ITC.