Prior to the implementation of the GST, there was a 19.5% tax rate on steel (excise rate 12.5%, VAT 5%, and CST 2%). However, GST has completely changed the game for the iron and steel industry. This article includes a comprehensive list of India's GST rates for iron and steel.
The second-largest producer of iron and steel in the world is India. India leads this sector as it has easy access to raw resources like coal and iron ore as well as its competitive labour costs.
Iron and steel are the most common construction materials, and they are also commonly employed in the fabrication of machine parts. Since the introduction of the GST Registration Process, the rate of GST for steel has been set at 18%, but the rate for some of the inputs utilised by the steel sector, such as iron, coal, and transportation services, is as low as 5%. Hence the overall cost of steel has reduced due to lower low tax rate of inputs.
GST Rate for Iron and Steel: Current Scenario
Generally all iron and steel items in Chapter 72 of the HSN Code are subject to an 18% GST rate. Manufacturing and sale of all types of iron and steel, such as iron rods, bars, and scrap iron and steel, are taxed at 18%. However, different GST rates have been emphasized for various types of iron or steel items.
| Iron & Steel Description | GST Rates (%) |
| 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% |
| Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switchblades, crossing frogs, point rods and other crossing pieces, sleepers (crossties), fishplates, chairs, chair wedges, sole plates (base plates), rail clips bedplates, ties and other material specialized for jointing or fixing rails | 18% |
| Tubes, pipes and hollow profiles, of cast iron | 18% |
| Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel | 18% |
| 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% |
| Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel | 18% |
| Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel | 18% |
| 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 frameworks, doors and windows and their frames and thresholds for doors, and shutters, balustrades, pillars, and columns), of iron or steel; plates, rods, angles, shapes, section, tubes and the like, prepared for using structures, of iron or steel [other than transmission towers] | 18% |
| 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% |
| Mathematical boxes, geometry boxes and colour boxes, pencil sharpeners | 12% |
| 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 | 18% |
| Containers for compressed or liquefied gas, of iron or steel | 18% |
| Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated | 18% |
| 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% |
| Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel | 18% |
| Chain and parts thereof, of iron or steel falling under 7315 20, 7315 81, 7315, 82, 7315 89, 7315 90 | 18% |
| Anchors, grapnels and parts thereof, of iron or steel | 18% |
| Animal shoe nails | 12% |
| 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% |
| Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel | 18% |
| Sewing needles | 12% |
| Sewing needles, 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 | 18% |
| Springs and leaves for springs, of iron and steel | 18% |
| Kerosene burners, kerosene stoves and wood burning stoves of iron or steel | 12% |
| LPG 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 and wood burning stoves of iron or steel] | 18% |
| Stoves [other than kerosene stove and LPG 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 | 18% |
| 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% |
| Table, kitchen or other household articles of iron & steel; Utensils | 12% |
| Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel | 18% |
| Sanitary ware and parts thereof of iron and steel | 18% |
| Other cast articles of iron or steel; such as Grinding balls and similar articles for mills, Rudders for ships or boats, Drain covers, Plates and frames for sewage water or similar system | 18% |
| Mathematical boxes, geometry boxes and colour boxes, pencil sharpeners. Art ware of iron | 12% |
| Other articles of iron and steel, forged or stamped, but not further worked; such as Grinding balls and similar articles for mills, articles for automobiles and Earth moving implements, articles of iron or steel Wire, Tyre bead wire rings intended for use in the manufacture of tyres for cycles and cycle-rickshaws, Belt lacing of steel, Belt fasteners for machinery belts, Brain covers, plates, and frames for sewages, water or similar system, Enamelled iron ware (excluding utensil & sign board), Manufacturers of stainless steel (excluding utensils), Articles of clad metal | 18% |
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