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Guide · GST Rates

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.

Written by
TaxClue Editorial Desk
Updated
18 August 2026
Reading time
5 min
Questions
16 answered
  • Updated for FY 2026-27
  • GST Expert Reviewed
  • Steel, Iron & Scrap
Quick Answer

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.

At a glance

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 ProductHSN CodeGST RateNotes
TMT bars / reinforcement bars7213 / 721418%Most used in construction; ITC claimable
HR (hot-rolled) coils / sheets7208 / 720918%Auto, fabrication, pipes
CR (cold-rolled) coils / sheets7209 / 721018%Appliances, auto body panels
Galvanized iron (GI) sheets / coils721018%Zinc-coated; roofing, ducts
Seamless pipes / tubes730418%Pressure, boiler, structural pipes
Welded / ERW pipes730618%Water supply, scaffolding
Line pipe (oil & gas)730518%API grade pipes
Stainless steel flat products7219 / 722018%Food, pharma, kitchenware
Structural steel (angles, beams, sections)721618%I-beams, H-beams, angle iron
Steel wire (plain / galvanized)721718%Fencing, binding, PC wire
Steel pipe fittings (elbows, flanges)730718%Plumbing, process piping
Iron & steel scrap (melting / re-rollable)720418%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.

One rate — but classification still matters

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.

Credit rules

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 TypeITC on SteelCondition
Manufacturer (factory)Yes — fullUsed in manufacturing taxable goods
Trading company (resale)Yes — fullCharge 18% on the onward sale
Contractor (works contract)YesInputs for a taxable works-contract service
Real-estate developer (selling units)ProportionateFor taxable / commercial units sold
Company building its own officeNo · 17(5)Blocked — immovable property for own use
Unregistered buyer / consumerNoNot 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 →
High-intent · scrap

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.

  1. 1Registered dealerCharges 18% (forward charge)
  2. 2Buyer pays18% GST on the invoice
  3. 3ITC claimedBuyer claims full ITC via GSTR-2B
  4. 4From unregisteredBuyer pays 2% TDS-style RCM on scrap
  • 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).
Scrap RCM & TDS are easy to miss

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 →
Cross-border

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.
Worked example

How 18% GST Adds Up on Steel

18% Domestic TMT purchase

Steel value₹1,00,000
GST @ 18%₹18,000
Buyer pays₹1,18,000

18% Imported coil (illustrative)

CIF value₹1,00,000
BCD @ 7.5%₹7,500
IGST @ 18% on ₹1,07,500₹19,350
Landed tax outlay₹26,850

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.

TaxClue Insight

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.

Sources
  1. Rates & notifications: gst.gov.in
  2. CBIC rate finder: cbic-gst.gov.in
  3. Iron & steel: Chapter 72 & 73, GST Tariff (18%)
  4. Scrap RCM & 2% TDS: Notifications 06/2024-CT(R) & 25/2024-CT (eff. 10 Oct 2024)

Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.

People also ask

Questions, answered

Short, direct answers to the 16 questions readers ask most on this topic.

All iron and steel products attract a uniform 18% GST in India — TMT bars, HR/CR coils and sheets, pipes and tubes, stainless steel, structural sections, wire and scrap. There is no lower slab based on type or end-use. The GST 2.0 reform effective 22 September 2025 kept steel at 18% (it reduced cement from 28% to 18%).

No. Steel remained at 18% under GST 2.0. The two-slab (5%/18%) rationalisation cut several construction inputs such as cement from 28% to 18%, but iron and steel were already at 18% and were not reduced. TMT bars, coils, pipes and scrap all continue at 18%.

TMT (Thermo-Mechanically Treated) and reinforcement bars attract 18% GST under HSN 7213 (bars/rods in irregularly wound coils) or HSN 7214 (other bars and rods of iron or non-alloy steel). This covers MS TMT bars used in construction. GST-registered contractors and manufacturers can claim ITC on their TMT purchases.

Steel pipes and tubes attract 18% GST. Seamless tubes/pipes fall under HSN 7304, welded (ERW) pipes under HSN 7306 and line pipe for oil/gas under HSN 7305 — all at 18%. Pipe fittings such as flanges, couplings and elbows under HSN 7307 are also 18%. This applies to MS, GI and stainless steel pipes alike.

Iron and steel sit in Chapter 72 of the HSN, and articles of iron/steel in Chapter 73. Common codes: 7213/7214 (bars and rods/TMT), 7208–7210 (HR/CR/GI flat products), 7216 (structural sections), 7217 (wire), 7219/7220 (stainless flat), 7304/7305/7306 (pipes), 7307 (fittings) and 7204 (scrap) — all taxed at 18%.

Stainless steel products attract 18% GST, the same as carbon steel. Stainless flat-rolled products fall under HSN 7219/7220, and stainless bars, wire and pipes under their respective Chapter 72/73 headings — all at 18%. Stainless steel kitchenware and utensils, however, may be classified separately and can carry a lower rate.

Iron and steel scrap (melting scrap, re-rollable scrap) under HSN 7204 attracts 18% GST. When bought from a GST-registered dealer, the seller charges 18% under forward charge and the buyer claims ITC. When a registered buyer purchases metal scrap from an unregistered supplier, GST is payable under Reverse Charge (RCM) since 10 October 2024.

Yes, a GST-registered contractor or construction company can claim ITC on steel used to supply taxable works-contract services on commercial projects. However, ITC is blocked under Section 17(5) of the CGST Act for construction of immovable property for its own use. Developers selling apartments can claim proportionate ITC on steel for taxable/commercial units.

Yes. A trading company that buys steel to resell claims full ITC on its purchases and charges 18% on the onward sale, so GST is effectively pass-through. ITC is available provided the supplier issued a valid tax invoice, the GSTIN and HSN match, and the credit appears in the trader's GSTR-2B.

ITC on steel is blocked mainly under Section 17(5)(c)/(d) when the steel is consumed in constructing immovable property (a building, plant foundation or structure) for the business's own use rather than for onward taxable supply. It is also unavailable to unregistered buyers, composition dealers, and where the invoice does not reconcile in GSTR-2B.

RCM does not apply when scrap is bought from a GST-registered dealer — the supplier charges 18% under forward charge and the buyer claims ITC. RCM applies when a registered buyer purchases metal scrap from an unregistered supplier (from 10 October 2024). A separate 2% GST-TDS also applies on B2B metal-scrap supplies between registered persons.

From 10 October 2024, a registered buyer of metal scrap must deduct 2% GST-TDS (1% CGST + 1% SGST, or 2% IGST) on B2B scrap supplies from another registered person, over the threshold, and deposit it via GSTR-7. This is separate from the 18% GST on the scrap itself and from the RCM that applies to purchases from unregistered sellers.

Import of steel attracts IGST at 18% — the same rate as domestic supply — plus Basic Customs Duty (BCD), which varies by product (roughly 7.5%–15%). Anti-dumping or safeguard duty may also apply on specific products from certain countries. IGST is computed on CIF value plus BCD and other duties, and importers can claim the IGST paid at customs as ITC.

Yes, both are 18% today — but they got there differently. Steel has been at 18% for years and stayed there under GST 2.0. Cement was reduced from 28% to 18% with effect from 22 September 2025. For a construction project, both major inputs now carry the same 18% rate.

Yes. Used or second-hand steel and steel scrap are taxable at 18% under HSN 7204 (scrap) or the relevant product heading. There is no exemption for used steel; the only special treatment is the RCM and 2% GST-TDS regime that applies to metal-scrap dealings from October 2024 onwards.

Multiply the taxable value of the steel by 18%. For example, ₹1,00,000 of TMT bars carries ₹18,000 GST, so the buyer pays ₹1,18,000. For imports, apply 18% IGST on CIF value plus BCD and other duties. You can use TaxClue's GST calculator to compute the tax and net amount on any steel value instantly.