{"id":12710,"date":"2024-08-21T12:18:33","date_gmt":"2024-08-21T06:48:33","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12710"},"modified":"2026-01-05T13:02:24","modified_gmt":"2026-01-05T07:32:24","slug":"gst-on-steel-iron","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/","title":{"rendered":"GST on Steel &#038; Iron Bars, Scraps and Other Products in 2026"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In 2023, India produced approximately <\/span><a href=\"https:\/\/currentaffairs.adda247.com\/top-10-steel-producing-countries-in-the-world\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">118,201 kt<\/span><\/a><span style=\"font-weight: 400;\"> of steel, securing its position as the world&#8217;s second-largest steel producer. With the iron and steel industry in India expected to generate around<\/span><a href=\"https:\/\/www.statista.com\/forecasts\/1054295\/manufacture-of-basic-iron-and-steel-revenue-in-india#:~:text=This%20statistic%20shows%20the%20revenue,billion%20U.S.%20Dollars%20by%202024.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> $128.5 billion<\/span><\/a><span style=\"font-weight: 400;\"> in 2024, the steel GST rate remains a significant concern. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will examine the applicability of GST on steel and iron, explore the current GST on iron and steel rates, review the taxation landscape before GST, and discuss the broader implications of these taxation changes on the iron and steel industry in India.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6bde687560\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6bde687560\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#What-is-the-GST-on-Steel-and-Iron\" >What is the GST on Steel and Iron?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Latest-GST-Rates-on-Steel-Iron-Bars-and-Other-Products-in-2026\" >Latest GST Rates on Steel &amp; Iron Bars and Other Products in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Latest-GST-Rates-on-Steel-Iron-Scraps-and-Powders-in-2026\" >Latest GST Rates on Steel &amp; Iron Scraps and Powders in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Historical-GST-Rates-and-Changes\" >Historical GST Rates and Changes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Impact-of-GST-Rate-on-Iron-and-Steel\" >Impact of GST Rate on Iron and Steel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-on-steel-iron\/#Frequently-Asked-Questions-FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-GST-on-Steel-and-Iron\"><\/span>What is the GST on Steel and Iron?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Iron and steel bars, scraps, pipes, sheets, and wires are generally subject to an 18% GST rate in India.<\/p>\n<p><em><strong>Read About: <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">Latest GST Rates on Goods and Services<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Latest-GST-Rates-on-Steel-Iron-Bars-and-Other-Products-in-2026\"><\/span><b>Latest GST Rates on Steel &amp; Iron Bars and Other Products in 2026<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html#:~:text=201-,7206,-Iron%20and%20non\" target=\"_blank\" rel=\"noopener\">As per GST Guidelines<\/a>, Here&#8217;s the list of GST Rates on Steel and Iron based products<\/p>\n<table style=\"height: 3343px;\" width=\"785\">\n<tbody>\n<tr>\n<td>\n<h3><b>Steel and Iron Products<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST<\/b> Rate<\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Unroasted iron pyrites<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2502<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron ores and concentrates, including roasted iron pyrites.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2601<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron and non-alloy steel ingots and primary forms<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7206<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or non-alloy steel semi-finished products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7207<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Flat-rolled iron or non-alloy steel products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7208 to 7212<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or non-alloy steel bars and rods<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7213 to 7215<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or non-alloy steel angles, shapes, and sections<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7216<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or non-alloy steel wire<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7217<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stainless steel ingots, primary forms, and semi-finished products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7218<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stainless steel flat-rolled products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7219, 7220<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stainless steel bars and rods<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7221, 7222<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stainless steel wire<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7223<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other alloy steel ingots, primary forms, and semi-finished products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7224<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other alloy steel flat-rolled products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7225, 7226<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other alloy steel bars and rods<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7227, 7228<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other alloy steel wire<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7229<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel sheet piling and welded sections<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7301<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel railway or tramway track construction material<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7302<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cast iron tubes, pipes, and hollow profiles<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7303<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel tubes, pipes, and hollow profiles (other than cast iron)\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7304<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Large diameter welded, riveted, or similar iron or steel tubes and pipes, with an external diameter exceeding 406.4 mm<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7305<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel tubes, pipes, and hollow profiles (welded, riveted, or similar)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7306<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron and Steel tube or pipe fittings (such as couplings, elbows, and sleeves)\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7307<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Structures made of iron or steel (Bridges and bridge sections, Lock gates, Towers, Lattice masts, Roofs and roofing frameworks, Doors, windows, door frames, thresholds, and shutters, Balustrades, pillars, and columns)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[other than transmission towers]<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7308<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel reservoirs, tanks, vats, and similar containers with a capacity exceeding 300 liters are used for storing materials (other than compressed or liquefied gas).\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7309<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Small iron or steel tanks, casks, drums, cans, and boxes with a capacity of up to 300 liters for holding non-gas substances.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7310<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel containers for compressed or liquefied gas.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7311<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Uninsulated iron or steel wire, rope, cable, band, sling, and similar products.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7312<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel barbed wire, single or twisted flat wire (barbed or unbarbed), and loosely twisted double wire for fencing.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7313<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel wire cloth, including endless bands, grills, netting, fencing, and expanded metal sheets.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7314<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel anchors, grapnels, and their components.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7316<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel nails, tacks, drawing pins, corrugated nails, and staples<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7317<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, and washers (including spring washers).<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7318<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Handheld iron or steel knitting needles, bodkins, crochet hooks, embroidery stilettos, and similar tools. Also includes safety pins and other unspecified iron or steel pins.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7319<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron and steel springs and spring leaves.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7320<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel stoves, ranges, grates, cookers (including those with built-in boilers for heating), barbecues, braziers, gas rings, plate warmers, and similar non-electric household appliances, and their parts.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7321<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel kerosene burners, kerosene stoves, and wood-burning stoves.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7321<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Non-electric iron or steel radiators for central heating and their components. This also includes non-electric iron or steel air heaters and hot air distributors with built-in fans or blowers, and their parts.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7322<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron and steel tables, kitchenware, and other household items, including utensils.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7323<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron or steel wool, pot scourers, scouring or polishing pads, gloves, and similar cleaning tools.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7323<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron and steel sanitary ware and their components.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7324<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Cast Iron or Steel Items<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7325<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Articles of Iron or Steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7326<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Art ware of iron<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7326 90 99<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Latest-GST-Rates-on-Steel-Iron-Scraps-and-Powders-in-2026\"><\/span>Latest GST Rates on Steel &amp; Iron Scraps and Powders in 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html#:~:text=156-,2618,-Granulated%20slag%20(slag\" target=\"_blank\" rel=\"noopener\">As per GST guidelines<\/a>, Here&#8217;s the list of GST rates on steel and iron scraps and powders.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Steel and Iron Products<\/b><\/h3>\n<\/td>\n<td>\n<h3>HSN code<\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Granulated slag sand from the manufacture of iron <\/span><span style=\"font-weight: 400;\">or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2618<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Slag waste from the manufacture of iron or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2619<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dross (other\u00a0 than\u00a0 granulated\u00a0 slag) waste from the manufacture of iron or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2619<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Scalings and<\/span> <span style=\"font-weight: 400;\">other waste<\/span> <span style=\"font-weight: 400;\">from the manufacture of iron or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2619<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Slag, ash and residues containing <\/span><span style=\"font-weight: 400;\">metals, arsenic or their compounds (other than from the manufacture\u00a0 of\u00a0 iron or steel)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2620<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Ferrous waste of iron or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7204<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Remelting scrap ingots of iron or steel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7204<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pig iron granules and powders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7205<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Spiegeleisen granules and powders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7205<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Iron granules and powders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7205<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Steel granules and powders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7205<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><em><strong>Read About: <a href=\"https:\/\/razorpay.com\/learn\/gst-exemption\/\">List of Goods and Services Exempt Under GST <\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Historical-GST-Rates-and-Changes\"><\/span><b>Historical GST Rates and Changes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before <a href=\"https:\/\/razorpay.com\/learn\/gst-goods-and-services-tax-guide\/\">GST<\/a>, two main taxes were applied to the production of iron and steel before they reached the consumer. Excise duty was 12.5%, and VAT was about 5%, bringing the total tax to around 17.5%. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For interstate sales, instead of VAT, CST was charged\u20142% with a C-Form and 5% without it, making the tax structure complex and leading to price disparities across regions. With the implementation of GST on steel and GST on iron, these multiple taxes were subsumed into a single tax regime, providing a more straightforward and transparent tax system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since its inception, the steel GST rates have seen some adjustments. Initially set at 18%, certain steel items, such as kitchen utensils, were later reduced to 12%, making them more affordable for consumers. However, the core GST rate for most iron and steel products has remained at 18%.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact-of-GST-Rate-on-Iron-and-Steel\"><\/span><b>Impact of GST Rate on Iron and Steel<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The introduction of GST on steel has brought about notable changes in the pricing of various steel and iron products. For instance, kitchen utensils like stainless steel cookers, pans, spoons, and ladles have become more affordable under steel GST rates, with a reduced rate of 12% compared to the previous tax rate of 17.5%. On the other hand, items such as barbecue sets, radiators, and rods have seen a slight increase in cost under GST on steel and GST on iron at 18%, compared to the earlier rate of 17.5%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, the GST rate on major inputs for the iron and steel industry, such as coal, iron ore, and transportation costs has been set at a lower rate of 5%. This reduction has helped in lowering logistics and production costs, benefiting the industry overall.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The implementation of GST on steel and GST on iron has brought a more consistent and simplified tax structure to the iron and steel industry. While some products have become cheaper, others have seen a slight increase in cost. Overall, the unified tax rate has streamlined the taxation process, providing a balanced impact on the sector.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs\"><\/span><b>Frequently Asked Questions (FAQs)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. What is the GST rate of the TMT bar?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The rate of GST on TMT bars is 18%.\u00a0<\/span><\/p>\n<h3><b>2. What is the GST rate of the steel scrap?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The GST rate for steel scrap is 18%. Steel scrap is classified under the HSN code 7204.<\/span><\/p>\n<h3><b>3. How is GST calculated on the import of steel products?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Steel GST rates on the import of steel products are calculated at the applicable GST rate for the specific product, plus any customs duties if applicable. The Integrated GST (IGST) is levied on the imported goods at the time of import.<\/span><\/p>\n<h3><b>4. What is the GST rate for steel furniture?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Steel furniture attracts a GST rate of 18%. This category includes items like steel chairs, tables, and cabinets.<\/span><\/p>\n<h3><b>5. Can we claim ITC on iron and steel?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, <a href=\"https:\/\/razorpay.com\/learn\/input-tax-credit-under-gst\/\">Input Tax Credit (ITC)<\/a> can be claimed on iron and steel if they are used for business purposes. ITC allows businesses to reduce the tax paid on inputs from the tax payable on output.<\/span><\/p>\n<h3><b>6. What is the HSN code for iron scrap?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The HSN code for iron scrap is 7204. It is taxed at an 18% GST rate.<\/span><\/p>\n<h3><b>7. What is the GST rate for steel labour?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Steel <a href=\"https:\/\/razorpay.com\/learn\/gst-on-labour-charges\/\">labour<\/a>, which typically includes the services provided by workers in the steel industry, is subject to an 18% GST rate. This rate applies to services such as welding, fabrication, and installation of steel products.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2023, India produced approximately 118,201 kt of steel, securing its position as the world&#8217;s second-largest steel producer. With the iron and steel industry in India expected to generate around $128.5 billion in 2024, the steel GST rate remains a significant concern. This article will examine the applicability of GST on steel and iron, explore<\/p>\n","protected":false},"author":151156614,"featured_media":13630,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3956,3949],"class_list":{"0":"post-12710","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-on-iron","9":"tag-gst-on-steel"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156614"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12710"}],"version-history":[{"count":13,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12710\/revisions"}],"predecessor-version":[{"id":18624,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12710\/revisions\/18624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13630"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}