GST on Steel & Iron in India —
A Flat 18%
The GST rate on TMT bars, HR/CR coils, pipes, stainless steel, structural sections and scrap — with HSN codes, ITC eligibility, RCM and import (IGST) rules.
All iron and steel products attract a uniform 18% GST in India — TMT bars (HSN 7213/7214), HR/CR coils and sheets (7208–7210), pipes and tubes (7304/7306), stainless steel (7219/7220), structural sections (7216), wire (7217) and scrap (7204). There is no lower slab for type or end-use. The GST 2.0 reform of 22 September 2025 left steel at 18% (it cut cement from 28% to 18%). ITC is available for registered manufacturers, traders and contractors; RCM does not apply on purchases from a registered dealer.
GST Rate on Steel Products — HSN Code Table
Every common iron and steel product with its HSN code and GST rate. All fall under Chapter 72 (iron & steel) or Chapter 73 (articles of iron/steel) at 18%.
| Steel Product | HSN Code | GST Rate | Notes |
|---|---|---|---|
| TMT bars / reinforcement bars | 7213 / 7214 | 18% | Most used in construction; ITC claimable |
| HR (hot-rolled) coils / sheets | 7208 / 7209 | 18% | Auto, fabrication, pipes |
| CR (cold-rolled) coils / sheets | 7209 / 7210 | 18% | Appliances, auto body panels |
| Galvanized iron (GI) sheets / coils | 7210 | 18% | Zinc-coated; roofing, ducts |
| Seamless pipes / tubes | 7304 | 18% | Pressure, boiler, structural pipes |
| Welded / ERW pipes | 7306 | 18% | Water supply, scaffolding |
| Line pipe (oil & gas) | 7305 | 18% | API grade pipes |
| Stainless steel flat products | 7219 / 7220 | 18% | Food, pharma, kitchenware |
| Structural steel (angles, beams, sections) | 7216 | 18% | I-beams, H-beams, angle iron |
| Steel wire (plain / galvanized) | 7217 | 18% | Fencing, binding, PC wire |
| Steel pipe fittings (elbows, flanges) | 7307 | 18% | Plumbing, process piping |
| Iron & steel scrap (melting / re-rollable) | 7204 | 18% | No RCM from a registered dealer |
4-digit HSN shown; use 6/8-digit HSN on invoices per turnover rules. Rates reflect the GST 2.0 structure effective 22 September 2025 — verify the latest notification on the CBIC portal before invoicing.
Because the whole iron & steel chapter sits at 18%, the rate rarely changes with product. What does change is the correct HSN code on your invoice, which drives e-invoicing, e-way bills and ITC matching. A wrong HSN on high-value steel invoices is a common cause of GSTR-2B mismatches for buyers.
ITC on Steel — Who Can Claim It?
Steel is a taxable input, so Input Tax Credit flows normally in most B2B cases. The big exception is steel consumed in constructing immovable property for a business's own use.
| Buyer Type | ITC on Steel | Condition |
|---|---|---|
| Manufacturer (factory) | Yes — full | Used in manufacturing taxable goods |
| Trading company (resale) | Yes — full | Charge 18% on the onward sale |
| Contractor (works contract) | Yes | Inputs for a taxable works-contract service |
| Real-estate developer (selling units) | Proportionate | For taxable / commercial units sold |
| Company building its own office | No · 17(5) | Blocked — immovable property for own use |
| Unregistered buyer / consumer | No | Not on the GST register |
ITC on steel used in constructing immovable property for own account is blocked under Section 17(5)(c)/(d) of the CGST Act.
You can claim ITC when
- You buy steel to manufacture or resell taxable goods
- You use it in a taxable works-contract / commercial project
- The supplier issued a valid tax invoice and it shows in your GSTR-2B
- You are GST-registered and pay output tax
ITC is blocked / at risk when
- Steel goes into your own building or fixed structure
- You are unregistered or under composition
- The invoice HSN or GSTIN does not match GSTR-2B
- You cannot show business use of the material
Buying steel in bulk? Get your ITC and GSTR-2B reconciliation handled.
Talk to a GST Expert →GST on Steel Scrap & the RCM Rule
Iron and steel scrap (HSN 7204) is taxed at 18%. How the tax is paid depends on whether the seller is registered.
- Scrap bought from a GST-registered dealer is on forward charge — the seller adds 18% and the buyer claims ITC as normal.
- Since 10 October 2024, a registered buyer purchasing metal scrap from an unregistered supplier must pay GST under Reverse Charge (RCM).
- A 2% GST TDS also applies on B2B metal-scrap supplies between registered persons (Notification 25/2024-CT).
Metal-scrap dealers were brought under special RCM and 2% GST-TDS rules from October 2024 to curb evasion. If you buy scrap from unregistered sellers, the RCM liability is yours — non-payment attracts interest and penalty even though you can usually claim it back as ITC.
Trading in steel scrap? Get your RCM and 2% TDS compliance set up correctly.
Get Scrap GST Advice →GST on Import of Steel (IGST)
Imported steel attracts IGST at 18% — the same rate as domestic supply — plus Basic Customs Duty (BCD) and, on some products/countries, anti-dumping or safeguard duty.
- IGST is charged on CIF value + BCD + all other customs duties, not on CIF alone.
- BCD typically ranges from 7.5% to 15% depending on the steel product (HR/CR coils, TMT, stainless).
- Importers can claim the IGST paid at customs as ITC, provided the goods are for business use.
How 18% GST Adds Up on Steel
18% Domestic TMT purchase
18% Imported coil (illustrative)
A GST-registered buyer recovers the ₹18,000 (domestic) or ₹19,350 IGST (import) as ITC, so for a taxable business the 18% is a cash-flow item, not a final cost. Use our GST calculator to check any value.
Steel's flat 18% makes the rate easy — the real money is in ITC discipline. Contractors and builders lose lakhs when steel ITC is blocked under Section 17(5) for own-use construction, or when supplier invoices don't reconcile in GSTR-2B. Get the classification and credit trail right from the first purchase order.
Frequently Asked Questions
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