GST Rate & HSN Codes for Steel Products in India (2026)
Most steel products in India attract 18% GST. The HSN code depends on the product’s shape: 7214 for TMT bars, 7216 for angles, channels and beams, 7208 for hot-rolled plates and coils, and 7306 for welded pipes. Use the right code on the invoice and e-way bill to avoid mismatches in input tax credit.
Key takeaways
- Iron and steel products are taxed at 18% GST; the September 2025 rate changes did not alter this.
- The HSN heading follows the product form (bar, section, flat-rolled, tube, wire).
- Use 8-digit codes on invoices where your turnover requires it; your supplier’s invoice should match.
- Always confirm the latest rate notification on the CBIC portal before invoicing.
Which HSN code applies to which steel product?
The table lists the 4-digit headings in Chapter 72 and 73 most used in construction and fabrication. Your accountant will pick the correct 8-digit sub-heading.
| Product | HSN heading | GST rate |
|---|---|---|
| Pig iron | 7201 | 18% |
| Sponge iron (DRI) | 7203 | 18% |
| Iron and steel scrap | 7204 | 18% |
| Billets, blooms (semi-finished steel) | 7207 | 18% |
| HR plates, sheets and coils (width 600 mm or more) | 7208 | 18% |
| Coated sheets incl. galvanised roofing (600 mm or more) | 7210 | 18% |
| HR strips and narrow flat-rolled (under 600 mm) | 7211 | 18% |
| Wire rod (bars and rods in coils) | 7213 | 18% |
| TMT bars, rounds, flats, squares (straight lengths) | 7214 | 18% |
| Angles, channels, beams (ISA, ISMC, ISMB) | 7216 | 18% |
| Wire incl. binding wire and GI wire | 7217 | 18% |
| Welded pipes and tubes | 7306 | 18% |
| Fabricated structures and parts (e.g. purlins, trusses) | 7308 | 18% |
Rates as reported for 2026 by multiple tax references; verify against the current CBIC rate notification before use.
What should a correct steel invoice show?
A GST tax invoice for steel should include:
- Supplier and buyer GSTIN, name and address.
- Invoice number and date; place of supply.
- Product description with size and grade (e.g. “ISMB 200, IS 2062 E250BR”).
- HSN code and quantity in MT or kg, matching the weighbridge slip.
- Taxable value, CGST and SGST (intra-state) or IGST (inter-state).
- Freight shown either within the taxable value or separately as per the contract.
When is an e-way bill needed?
An e-way bill is needed when goods worth more than ₹50,000 move by road in most cases, and almost every truckload of steel crosses this. The supplier normally generates it with vehicle number and distance. Check that the HSN, quantity and value on the e-way bill match the invoice.
For more on paperwork that should come with steel, see our guide to verifying a mill test certificate and the logistics page.
What about scrap and reverse charge?
Metal scrap is also taxed at 18%. When a registered buyer purchases scrap from an unregistered seller, reverse charge applies; between registered businesses, normal forward charge and the applicable TDS rules apply. This mainly matters for fabricators selling offcuts.
How does GST affect the steel rates I compare?
Steel rates are usually quoted per tonne excluding GST and freight. When comparing quotes, add 18% GST and freight to each to get the landed cost. Indicative ex-Raipur rates are on our steel prices page, and our BOQ guide shows how to ask for quotes on the same basis.
How RLG Ispat can help
RLG Ispat is GST-registered in Chhattisgarh (GSTIN 22BGWPG1403J1ZK) and bills every supply on a GST tax invoice with e-way bill where applicable. Send your requirement through the quote form or WhatsApp +91 75870 51838.
Frequently asked questions
What is the GST rate on steel in India?
Most iron and steel products, including TMT bars, beams, angles, plates, coils, pipes and wire, attract 18% GST. The September 2025 GST rate changes did not change the rate for steel.
What is the HSN code for TMT bars?
TMT bars and other hot-rolled bars and rods fall under HSN 7214; bars and rods in irregularly wound coils (such as wire rod) fall under 7213.
What is the HSN code for MS angles, channels and beams?
Angles, shapes and sections of iron or non-alloy steel, including ISMB beams, ISMC channels and ISA angles, fall under HSN 7216.
Can I claim input tax credit on steel?
Registered businesses can generally claim ITC on steel used in the course of business, subject to GST law conditions. Construction of immovable property for own use has restrictions; check with your tax adviser.
Is an e-way bill required for steel?
An e-way bill is required for movement of goods above the threshold value, which is ₹50,000 for most consignments. Steel loads almost always cross it.