Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
Simplified Taxation: GST replaced multiple taxes with a unified 18% rate.
Cost Savings: Input Tax Credit (ITC) reduced production costs.
Better Logistics: Removal of inter-state barriers improved supply chains.
SME Challenges: Large firms benefited, but SMEs faced compliance issues.
Price Changes: Some items became cheaper (12% GST), others costlier (18%).
India has secured the title of the second-largest steel producer in the world. In 2023, our country produced around118,201 kt of steel, making its contribution to world steel production stats inevitably known. By tracing relevant references, researchers predict that the Indian iron and steel industry will generate crores of rupees in 2025.
This blog will determine the impact of GST on the steel industry by examining its degree of applicability. Thus, explore the current GST rates on iron and steel. Understand the taxation landscape to be able to deduce the revolutionary impact GST has had. Further, we shall discuss the implications of taxation amendments on the Indian iron and steel industry.
What Is the GST on Steel and Iron?
The GST rate applicable on steel and iron in India is 18%. Therefore, iron and steel bars, pipes, sheets, scraps and wires are all generally subject to this 18% GST rate within the country.
Latest GST Rates on Steel & Iron Bars and Other Products in 2025
Stay updated regarding the latest GST rates applicable on steel and iron bars, alongside other products for the year 2025:
Steel and Iron Products
Applicable GST Rate
HSN Code
Unroasted iron pyrites
5%
2502
Iron ores & concentrates (including roasted iron pyrites)
18%
2601
Iron & non-alloy steel ingots, primary forms
18%
7206
Iron/non-alloy steel semi-finished products
18%
7207
Flat-rolled iron/non-alloy steel products
18%
7208 to 7212
Iron/non-alloy steel bars & rods
18%
7213 to 7215
Iron/non-alloy steel angles, sections & shapes
18%
7216
Iron/non-alloy steel wire
18%
7217
Stainless steel ingots, semi-finished products & primary forms
18%
7218
Stainless steel flat-rolled items
18%
7219, 7220
Stainless steel bars & rods
18%
7221, 7222
Stainless steel wire
18%
7223
Other types of alloy steel ingots/primary forms/semi-finished products
18%
7224
Other alloy steel flat-rolled items
18%
7225, 7226
Other alloy steel bars & rods
18%
7227, 7228
Other alloy steel wire
18%
7229
Iron/steel sheet piling & welded sections
18%
7301
Iron/steel railway/tramway track construction material
18%
7302
Cast iron pipes, tubes, & hollow profiles
18%
7303
Iron/steel tubes, pipes & hollow profiles (apart from cast iron)
18%
7304
Large diameter welded/riveted/similar iron or steel tubes & pipes (with external diameter over 406.4 mm)
Iron & Steel tube/pipe fittings (including couplings, elbows, & sleeves)
18%
7307
Structures made out of iron/steel (Bridges & bridge sections, Lock gates, Towers, Lattice masts, Roofs and roofing frameworks, Doors, windows, door frames, thresholds, and shutters, Balustrades, pillars, & columns)Other than transmission towers
18%
7308
Iron/steel reservoirs, tanks, vats & similar containers with a capacity exceeding 300 litres which are used for storing materials (apart from compressed or liquefied gas)
18%
7309
Small iron/steel tanks, casks, drums, cans & boxes with a capacity of up to 300 litres meant to hold non-gas substances
18%
7310
Iron/steel containers meant for compressed/liquefied gas
18%
7311
Uninsulated iron/steel wire, rope, cable, band, sling, & other similar products
18%
7312
Iron/steel barbed wire, single or twisted flat wire (barbed/unbarbed), & loosely twisted double wire made for fencing
Handheld iron/steel knitting needles, crochet hooks, bodkins, embroidery stilettos, and similar tools (including safety pins & other unspecified iron or steel pins)
18%
7319
Iron & steel springs & spring leaves
18%
7320
Iron/steel stoves, ranges, grates, gas rings, cookers (including ones with built-in boilers made for heating), barbecues, plate warmers, braziers, & similar non-electric household appliances, plus their components
Non-electric iron/steel radiators for central heating & their respective components (includes non-electric iron/steel air heaters & hot air distributors with built-in fans/blowers, plus their parts)
18%
7322
Iron & steel kitchenware, tables & other household items (including utensils)
12%
7323
Iron/steel wool, pot scourers, scouring/polishing pads, gloves & similar cleaning tools.
Latest GST Rates on Steel & Iron Scraps and Powders in 2025
The latest GST rates on steel/iron scraps and powders apply as specified below, for the year 2025:
Steel & Iron Products
HSN Code
Applicable GST Rate
Granulated slag sand made from the manufacture of iron/ steel
2618
5%
Slag waste made from the manufacture of iron/steel
2619
18%
Dross (apart from granulated slag) waste made from the manufacture of iron/steel
2619
18%
Scalings & other waste from the manufacture of iron/steel
2619
18%
Slag, ash & residues containing metals, arsenic/their compounds (other than from the manufacture of iron/steel)
2620
18%
Ferrous waste of iron/steel
7204
18%
Remelting scrap ingots of iron/steel
7204
18%
Pig iron granules & powders
7205
18%
Spiegeleisen granules & powders
7205
18%
Iron granules & powders
7205
18%
Steel granules & powders
7205
18%
Historical GST Rates and Note-worthy Changes
In the pre-GST landscape, there were essentially two major taxes that were applicable on the production of steel and iron, prior to reaching the consumer. Namely, the excise duty was 12.5%, and the VAT was approximately 5%. Thus, the total tax applicable was around 17.5%.
Certain conditions applied. In the case of interstate sales, CST was charged at 2% instead of VAT, with a C-Form and 5% without the C-Form. This complicated the tax structure, leading to price disparities across regions. However, with the implementation of GST on iron and steel, the multiple taxes were subsumed into one single tax regime.
Ever since the beginning, steel and iron GST rates have been adjusted along the way. Initially, the rate was set at 18%. Later, GST rates for specific steel items, including kitchen utensils, were reduced to 12%, making them more accessible to buyers. However, the generally accepted GST rate for most of the iron and steel products has stayed at 18%.
Impact of GST Rate on Iron & Steel
These points summarise the impact of the introduction of GST on iron and steel:
● Simplification of the Tax Structure: The main objective of GST was to simplify an otherwise complex tax structure in India. The steel and iron industry previously dealt with several tax requirements, but currently, business heads are thoroughly benefiting from a unified tax system. GST has successfully streamlined processes, minimising the compliance burden on iron and steel manufacturers, thus enhancing efficiency.
● Advantage of ITC (Input Tax Credit): GST sets the Input Tax Credit mechanism in motion. It allowed enterprises to offset their taxes paid on inputs (i.e. procuring raw materials and expenses at other stages of production) against the final tax liability. For the iron and steel industry, this led to cost savings and a boosted competitive edge.
● Supply Chain Efficiency: GST has fueled efficiency in the supply chain for the iron and steel sector. The introduction of a seamless tax collection system and the simultaneous removal of inter-state barriers have allowed for the convenient movement of items. This has reduced logistics costs and has made timely project deliveries possible on the manufacturers’ end.
● Impact on Small and Medium Enterprises (SMEs): It goes without saying that large-scale steel manufacturers have reaped a multitude of benefits from the GST framework. However, the impact has been varied on small and medium-scale enterprises (SMEs) within the iron and steel sector.
● Challenges with Compliance: Even though there have been positive changes, the GST transition has brought about its fair share of challenges to do with compliance in the steel and iron sector. Only after certain adjustments in accounting processes/systems later on, adapting to the new tax regime has been made an acceptable reality.
The application of GST on iron and steel has led to tweaks in pricing to various degrees, making certain products like steel kitchen utensils more accessible with a 12% tax rate. Some other products like radiators and barbecue sets have become slightly more expensive with an associated 18% tax rate. Despite this scenario, the iron and steel industry has vastly benefited from the lower GST rates on key inputs such as coal and iron ore, minimising overall production costs and logistics.
When we trace the impact of GST on the steel industry, it is also important to note that small and medium-scale enterprises have had varied experiences with the new regime. There have also risen compliance challenges. Therefore, we can conclude that while the GST system has led to an overall improvement in the tax collection procedure in India, it does set its share of complications in the iron and steel industry.
💡If you want to streamline your payment and make GST payments via credit card, consider using the PICE App. Explore the PICE App today and take your business to new heights.
FAQs
What is the GST rate on iron and steel products in India?
The general GST rate on most iron and steel products is 18%, including bars, rods, pipes, and wires. However, certain products like kitchen utensils have a lower 12% GST rate, while unroasted iron pyrites attract 5% GST.
How has GST simplified taxation for the steel industry?
Before GST, multiple taxes like excise (12.5%) and VAT (5%) complicated the system. GST merged these into a single tax, reducing compliance burdens, eliminating inter-state tax barriers, and streamlining operations.
What are the benefits of Input Tax Credit (ITC) under GST?
ITC allows manufacturers to deduct taxes paid on raw materials from their final tax liability. This reduces production costs, improves cash flow, and enhances competitiveness in both domestic and global markets.
How has GST affected steel product prices?
GST has caused mixed price changes. Some products, like kitchenware (12% GST), became more affordable, while others, like radiators and barbecue sets (18% GST), saw slight price increases due to higher taxation.
What challenges has the steel industry faced due to GST?
While large manufacturers benefit from a simplified tax regime, small and medium enterprises (SMEs) struggle with compliance. Adapting to new filing systems and accounting processes initially created difficulties, though adjustments have improved over time.
Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
0
Instant Transfer
Lowest Rates
Credit on all transaction