GST Rate on Iron and Steel

Updated on: Sep 29th, 2025

9 min read

Iron and steel are major components of the manufacturing and construction industries. India is the second-largest global producer of iron and steel because we have ample raw materials and human resources. This article provides updates from the 56th GST Council meeting, including changes to the taxation rates for specific iron and steel products to be relevant to the sector and its overall impact on the economy.

Key Takeaways
The 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:
The GST rates on Kerosene burners, stoves, and wood-burning stoves made of iron or steel have been reduced from 12% to 5%.
The GST rates on Kitchen or household articles and utensils made of iron or steel have been reduced from 12% to 5%.
The GST rates on Milk cans made of iron, steel, or aluminium have been reduced from 12% to 5%.
Handicraft art ware made of iron have been reduced from 12% to 5%.

GST Rate on Iron and Steel

The manufacturing and sale of all kinds of iron and steel like iron rods, bars, and scraps of iron and steel, etc. are charged at the rate of 18%. Different rates have been provided for different kinds of articles made of iron or steel.

HSN Codes for Iron and Steel

Most of the iron and steel products fall under the 18% GST category. These include raw materials, structural elements, and finished goods such as TMT bars, steel plates, and sheets. However, certain specialised steel products and some steel scrap might have additional provisions.

The HSN code for iron and steel products is 72, and it is used to classify these products for GST purposes. Different subcategories exist under this HSN code depending on the specific nature of the product.

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%
2619		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%
7301		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; plates, rods, angles, shapes, section, tubes and the like, prepared for using structures, 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%

Previous Tax Laws on Iron and Steel

There were two different kinds of taxes that were levied under pre-GST laws on the manufacture of iron and steel (in any form) before reaching the end consumer. Excise duty was charged at the rate of 12.5% and the VAT rate was around 5%, taking the total taxes imposed to about 17.5%. In the case of interstate sales, CST was charged instead of VAT at 2% with C-Form and 5% otherwise.

Impact of GST on Iron and Steel

Following the 56th GST Council meeting, kitchen and household items, including utensils (HSN 7323), kerosene or wood stoves, and solar cookers, have become cheaper due to a reduction in their GST rate from 12% to 5%. Earlier, under VAT, such goods were subject to a higher tax of approximately 17.5%. However, most other iron and steel products, including rods, bars, pipes, radiators, fasteners, and structural materials, continue to be taxed at 18%, which is slightly higher than the old 17.5% rate.

On the other hand, the steel industry continues to enjoy lower input costs, as raw materials such as coal and iron ore, along with transport services, remain under the 5% GST bracket, thereby easing logistics and production expenses.

Thus, while consumers benefit from cheaper household steel products, industrial buyers face marginally higher rates, with the overall structure still favourable to long-term growth in the sector.

Frequently Asked Questions

What is the GST rate for Tata steel?

Tata Steel, like all other iron and steel manufacturers, is subject to an 18% GST rate on its products.

What is the HSN code for iron and steel?

The HSN code for iron and steel products is 72, with specific subcategories for different types of steel and iron products.

What is the HSN code for TMT bars and GST rate?

The HSN code for TMT bars is 7214, and the GST rate applicable is 18%.

Is GST applicable on iron and steel scrap?

Yes, iron and steel scrap is subject to an 18% GST.

What is the GST rate for iron rods and bars used in construction?

Iron rods and bars used in construction fall under the 18% GST rate.

What is the GST rate for stainless steel?

Stainless steel is also taxed at 18% under the GST regime.

About the Author

Annapoorna

Assistant Manager - Content

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

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