Explore GST rates on iron and steel in India, including HSN codes and 56th Council updates. Most industrial products remain at 18%.
Iron and steel play a crucial role in India’s manufacturing and construction sectors. As the world’s second-largest producer, India benefits from abundant raw materials and a skilled workforce. This article delves into the recent adjustments from the 56th GST Council meeting, outlining new tax rates for certain iron and steel items and their broader economic implications.Important updates from the 56th GST Council meeting became effective on September 22, 2025, including the following changes:
- GST rates on kerosene burners, stoves, and wood-burning stoves constructed from iron or steel were lowered from 12% to 5%.
- Kitchen and household articles, along with utensils made of iron or steel, saw their GST rates reduced from 12% to 5%.
- Milk cans, whether made of iron, steel, or aluminum, now attract a GST rate of 5%, down from 12%.
- Handicraft art ware crafted from iron also experienced a rate decrease from 12% to 5%.
Current GST Rates for Iron and Steel
The production and distribution of various iron and steel items, such as rods, bars, and scrap materials, are subject to an 18% Goods and Services Tax. However, specific articles manufactured from iron or steel may have distinct tax rates.
HSN Codes and Associated GST Rates for Iron and Steel Products
A majority of iron and steel commodities are categorized under the 18% GST slab. This includes raw materials, structural components, and processed items like TMT bars, steel plates, and sheets. Nonetheless, certain specialized steel products and particular types of steel scrap may be subject to different regulations. The Harmonized System of Nomenclature (HSN) code 72 is assigned to iron and steel products for GST classification, with various subcategories depending on the product’s exact nature.
| HSN Code | Product description | GST Rates |
|---|---|---|
| GST rates @5% | ||
| 2502 | Unroasted iron pyrites | 5% |
| 2618 | Granulated slag (slag sand) from the manufacture of iron or steel | 5% |
| 7310, 7323, 7612, or 7615 | Milk cans made of Iron, Steel, or Aluminium | 5% |
| 7321 | Kerosene burners, kerosene stoves and wood burning stoves of iron or steel | 5% |
| 7323 | Table, kitchen or other household articles of iron & steel; Utensils | 5% |
| GST rates @18% | ||
| 2601 | Iron ores and concentrates, including roasted iron pyrites | 18% |
| 2619 | Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel, other than Linz-Donawitz (LD) slag. | 18% |
| 2620 | Slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds. | 18% |
| 7201 | Pig iron and spiegeleisen in pigs, blocks or other primary forms | 18% |
| 7203 | Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 99.94%, in lumps, pellets or similar forms | 18% |
| 7204 | Ferrous waste and scrap; remelting scrap ingots of iron or steel | 18% |
| 7205 | Granules and powders, of pig iron, spiegeleisen, iron or steel | 18% |
| 7206 | Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203) | 18% |
| 7207 | Semi-finished products of iron or non-alloy steel | 18% |
| 7208 to 7212 | All flat-rolled products of iron or non-alloy steel | 18% |
| 7213 to 7215 | All bars and rods, of iron or non-alloy steel | 18% |
| 7216 | Angles, shapes and sections of iron or non-alloy steel | 18% |
| 7217 | Wire of iron or non-alloy steel | 18% |
| 7301 | “Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel” | 18% |
| 7302 | “Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish-plates, chairs, chair wedges, sole plates (base plates), rail clips bedplates, ties and other material specialized for jointing or fixing rails” | 18% |
| 7203 | Tubes, pipes and hollow profiles, of cast iron | 18% |
| 7304 | “Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel” | 18% |
| 7305 | Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel” | 18% |
| 7306 | “Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel” | 18% |
| 7307 | “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel” | 18% |
| 7308 | “Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frame-works, doors and windows and their frames and thresholds for doors, and shutters, balustrades, pillars, and columns), of iron or steel [other than transmission towers]” | 18% |
| 7309 | “Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment” | 18% |
| 7310 | “Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat- insulated, but not fitted with mechanical or thermal equipment, other than Milk cans made of Iron or Steel” | 18% |
| 7211 | Containers for compressed or liquefied gas, of iron or steel. | 18% |
| 7312 | Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated | 18% |
| 7313 | “Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing, of iron or steel” | 18% |
| 7314 | Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel | 18% |
| 7315 | Chain and parts thereof, of iron or steel falling under 7315 20, 7315 81, 7315 82, 7315 89, 7315 90 | 18% |
| 7316 | Anchors, grapnels and parts thereof, of iron or steel | 18% |
| 7317 | “Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper” | 18% |
| 7318 | “Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel” | 18% |
| 7319 | “Knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles, for use in the hand, of iron or steel; safety pins and other pins of iron or steel, not elsewhere specified or included” other pins of iron or steel, not elsewhere specified or included” | 18% |
| 7320 | Springs and leaves for springs, of iron and steel | 18% |
| 7321 | “Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel [other than Kerosene burners, kerosene stoves, wood burning stoves of iron or steel, and solar cookers]” | 18% |
| 7322 | “Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel” | 18% |
| 7323 | Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel (other than Milk cans made of Iron or Steel)” | 18% |
| 7324 | Sanitary ware and parts thereof, of iron and steel | 18% |
| 7325 | Other cast articles of iron or steel | 18% |
| 7326 | Other articles of iron or steel | 18% |
| 7415 | “Nails, tacks, drawing pins, staples (other than those of heading 83.05) and similar articles, of copper or of iron or steel with heads of copper; screws, bolts, nuts, screw hooks, rivets, cotters, cotter- pins, washers (including spring washers) and similar articles, of copper” | 18% |
Pre-GST Taxation Framework for Iron and Steel
Prior to the implementation of GST, the production of iron and steel, in all its forms, was subject to two distinct taxes before reaching the final consumer. An excise duty of 12.5% was applied, alongside a Value Added Tax (VAT) of approximately 5%, resulting in a combined tax burden of about 17.5%. For sales conducted across state lines, Central Sales Tax (CST) was levied instead of VAT, at a rate of 2% when a C-Form was used, and 5% otherwise.
The Effect of GST Implementation on the Iron and Steel Industry
Subsequent to the 56th GST Council meeting, certain household and kitchen articles, such as utensils (HSN 7323), kerosene and wood stoves, and solar cookers, are now more affordable. Their GST rate was reduced from 12% to 5%, a significant drop from the previous VAT regime’s approximate 17.5% tax. Conversely, a majority of other iron and steel commodities, including rods, bars, pipes, radiators, fasteners, and structural components, retain an 18% tax rate, which is a slight increase from the previous 17.5%. Despite this, the steel sector benefits from reduced input costs; raw materials like coal and iron ore, along with transportation services, remain within the 5% GST slab, streamlining logistics and manufacturing expenditures. In summary, while end-consumers gain from more economical household steel goods, industrial purchasers experience slightly elevated rates, though the overarching framework still supports the sector’s long-term expansion.
