GST on Steel & Iron Products — TMT Bars, HR/CR Coils, Pipes, Scrap (2025)
Updated: 3 June 2026 | CGST Act, 2017 | GST Council Rates as amended
All steel and iron products attract 18% GST in India. This covers TMT bars (HSN 7213/7214), HR/CR steel coils and sheets (HSN 7209/7210), steel pipes and tubes (HSN 7304/7306), stainless steel products (HSN 7219/7220), structural steel (angles, beams, channels — HSN 7216), galvanized iron sheets (HSN 7210), steel wire (HSN 7217), and iron scrap (HSN 7204). ITC is available for registered manufacturers and contractors. RCM does not apply on purchases from registered dealers.
18% GST
Uniform rate on all steel products — no exceptions for type or end-use.
IGST 18% on imports. ITC available for B2B supply. Construction for own use: ITC blocked under Section 17(5) CGST Act.
IGST 18% on imports. ITC available for B2B supply. Construction for own use: ITC blocked under Section 17(5) CGST Act.
GST Rate on Steel Products — HSN Code Table
| Steel Product | HSN Code | GST Rate | Notes |
|---|---|---|---|
| TMT bars / reinforcement bars | 7213 / 7214 | 18% | Most used in construction; ITC claimable |
| HR (hot-rolled) steel coils / sheets | 7208 / 7209 | 18% | Used in auto, fabrication |
| CR (cold-rolled) steel coils / sheets | 7209 / 7210 | 18% | Appliances, auto body panels |
| Galvanized iron (GI) sheets / coils | 7210 | 18% | Zinc-coated; roofing, ducts |
| Seamless steel pipes / tubes | 7304 | 18% | Pressure, boiler, structural pipes |
| Welded steel pipes / ERW pipes | 7306 | 18% | Water supply, scaffolding |
| Line pipe for oil & gas | 7305 | 18% | API grade pipes |
| Stainless steel flat-rolled products | 7219 / 7220 | 18% | Food processing, pharma, kitchenware |
| Structural steel (angles, beams, channels, sections) | 7216 | 18% | I-beams, H-beams, angle iron |
| Steel wire (plain, galvanized) | 7217 | 18% | Fencing, binding wire, PC wire |
| Cast iron products (pipes, fittings) | 7303 | 18% | Drainage pipes, manhole covers |
| Iron & steel scrap (melting / re-rollable) | 7204 | 18% | No RCM from registered dealer |
| Steel pipe fittings (elbows, flanges) | 7307 | 18% | Plumbing, process piping |
| Ferro-alloys (ferro-manganese, etc.) | 7202 | 18% | Steelmaking inputs |
HSN codes at 4-digit level shown. Use 6-digit or 8-digit HSN on invoices per turnover rules. Rates as of FY 2025-26 — verify latest notifications on CBIC website.
ITC on Steel — Who Can Claim?
| Buyer Type | ITC on Steel | Condition |
|---|---|---|
| Manufacturer (factory) | Yes — full ITC | Used in manufacturing taxable goods |
| Contractor (works contract) | Yes — on inputs for taxable services | Commercial projects; not for own use |
| Real estate developer (selling units) | Proportionate ITC | Only for unsold commercial/taxable units |
| Company building own office | No — blocked u/s 17(5) | ITC blocked for immovable property own use |
| Trading company (resale) | Yes — full ITC | On purchase; charge GST on sale |
| Unregistered buyer / consumer | No ITC | Not on GST register |
Frequently Asked Questions
What is the GST rate on TMT bars?
TMT (Thermo-Mechanically Treated) bars and reinforcement bars attract 18% GST. They fall under HSN code 7213 (bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel) or HSN 7214 (other bars and rods of iron or non-alloy steel). Applicable to MS (mild steel) TMT bars used in construction. ITC can be claimed by contractors and manufacturers registered under GST on their TMT bar purchases.
What is the GST rate on steel pipes?
Steel pipes and tubes attract 18% GST. HSN codes: seamless tubes/pipes (HSN 7304) — 18%; welded pipes of circular cross-section (HSN 7306) — 18%; line pipe for oil/gas (HSN 7305) — 18%. This applies to MS pipes, GI pipes, and stainless steel pipes. ERW pipes (electric resistance welded) — 18% GST. Pipe fittings (flanges, couplings, elbows) under HSN 7307 — also 18%.
Can a construction company claim ITC on steel purchases?
Yes, a GST-registered contractor or construction company can claim Input Tax Credit (ITC) on steel purchases used for taxable supply of services. However, ITC is blocked under Section 17(5) of the CGST Act for construction of immovable property for own use (not for further supply). Developers selling apartments can claim ITC on steel used in construction proportionate to taxable units. Works contract services for commercial buildings allow ITC on steel.
What GST applies on import of steel?
Import of steel attracts IGST at 18% (same rate as domestic supply) plus Basic Customs Duty (BCD), which varies: HR coils: BCD 7.5%–12.5%; CR coils: BCD 7.5%; TMT bars: BCD 7.5%; stainless steel: BCD 7.5%–15%. Additionally, anti-dumping duty may apply on specific steel products from certain countries. IGST on import is calculated on CIF value + BCD + all other duties. Importers can claim ITC on IGST paid at customs.
Does RCM apply on steel scrap? What is the GST rate?
Steel scrap (iron scrap, melting scrap, re-rollable scrap) under HSN 7204 attracts 18% GST. Reverse Charge Mechanism (RCM) does NOT apply when purchased from a GST-registered dealer — the supplier charges GST and the buyer claims ITC normally. RCM applies only when purchasing from unregistered dealers (Section 9(4) of CGST Act), and only for notified goods/services. Steel scrap sold by scrap dealers registered under GST: forward charge at 18%.
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