HSN Chapter 72: Iron & Steel GST Rates 2026 - TMT Bars, Rods, Pipes
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🚀 Use Complete HSN Rate Finder🏗️ GST 2.0 MAJOR RELIEF: Steel Bars & Rods at 5% GST UPDATED FOR 2026
Historic GST Rate Reduction Under GST 2.0:
Effective September 22, 2025 and continuing through 2026, Chapter 72 (iron & steel) witnessed one of the BIGGEST GST RATE CUTS under GST 2.0 reforms. Construction steel items including TMT bars, steel rods, steel pipes, and steel scrap REDUCED from 18% to 5% GST - a massive 72% tax reduction supporting India's infrastructure and housing sectors!
GST Rates for Chapter 72 (Current as of 2026) - MAJOR CHANGES:
- 🟢 TMT Bars & Steel Rods: 5% GST ↓ WAS 18%! (72% reduction!)
- 🟢 Steel Pipes & Tubes: 5% GST ↓ WAS 18%! (Seamless, Welded)
- 🟢 Steel Scrap: 5% GST ↓ WAS 18%! (Recycling Support)
- 🟢 Cast Iron Pipes: 5% GST ↓ WAS 18%!
- 🟢 Steel Wire: 5% GST ↓ WAS 18%! (Construction Use)
- 🔴 Fabricated Steel Articles: 18% GST UNCHANGED (Finished Products - Chapter 73)
- 🔴 Steel Rails, Angles, Sections: 18% GST UNCHANGED
🎉 MASSIVE CONSTRUCTION SECTOR RELIEF - 72% GST REDUCTION!
- ✅ TMT Bars: 18% → 5% GST (₹13 saved per ₹100!)
- ✅ Steel Pipes: 18% → 5% GST (plumbing/infrastructure)
- ✅ Steel Rods: 18% → 5% GST (construction/reinforcement)
- ✅ Steel Scrap: 18% → 5% GST (recycling industry boost)
- 💰 Price Impact: ₹1 lakh steel → GST reduced from ₹18,000 to ₹5,000 = ₹13,000 saved!
- 🏗️ Policy Goal: Make construction materials affordable, accelerate infrastructure development
HSN Chapter 72 encompasses iron and steel in various forms including pig iron and spiegeleisen in pigs, blocks or other primary forms, ferro-alloys, ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, ferrous waste and scrap, remelting scrap ingots of iron or steel, iron and non-alloy steel in ingots or other primary forms, semi-finished products of iron or non-alloy steel, flat-rolled products of iron or non-alloy steel (sheets, coils, strips), bars and rods of iron or non-alloy steel (including TMT bars), angles, shapes and sections of iron or non-alloy steel, wire of iron or non-alloy steel, hollow sections, pipes and tubes of iron or steel, cast iron tubes and pipes, and other tubes and pipes of iron or steel including seamless and welded varieties. This chapter covers the entire iron & steel manufacturing value chain from raw iron ore to semi-finished and finished steel products.
Under GST 2.0 continuing through 2026, Chapter 72 experienced one of the MOST DRAMATIC rate reductions: construction-grade steel items (TMT bars, rods, pipes, tubes, steel scrap) SLASHED from 18% to 5% GST effective September 22, 2025, providing MASSIVE relief to builders, infrastructure projects, and the construction sector; this 72% tax reduction (₹18 to ₹5 per ₹100) makes steel significantly more affordable for affordable housing, roads, bridges, and industrial construction. However, fabricated and finished steel articles (under Chapter 73) continue at 18% GST maintaining appropriate taxation on value-added products. This targeted relief supports Government's infrastructure push and housing goals.
⚙️ GST 2026 Rate Structure for Chapter 72
🎯 GST 2.0 TWO-TIER STRUCTURE (Effective Sept 22, 2025)
MASSIVE RATE CUT: Construction Steel at 5% GST!
TIER 1: Construction & Raw Materials - 5% GST:
- 🟢 5% GST: TMT bars, steel rods, reinforcement bars ↓ WAS 18%!
- 🟢 5% GST: Steel pipes & tubes (seamless, welded) ↓ WAS 18%!
- 🟢 5% GST: Cast iron pipes ↓ WAS 18%!
- 🟢 5% GST: Steel wire (construction use) ↓ WAS 18%!
- 🟢 5% GST: Steel scrap, ferrous waste ↓ WAS 18%!
- 🟢 5% GST: Pig iron, ferro-alloys ↓ WAS 18%!
- ✅ Policy: Support affordable housing & infrastructure development
TIER 2: Finished Steel Products - 18% GST:
- 🔴 18% GST: Steel rails, railway track construction material
- 🔴 18% GST: Steel angles, sections, shapes (non-construction)
- 🔴 18% GST: Flat-rolled steel products (sheets, coils - some uses)
- 🔴 18% GST: Fabricated steel articles (Chapter 73 items)
- ⚠️ Note: Finished/processed steel at standard rate
🎉 Historic GST Reduction Impact:
| Item | OLD GST | NEW GST | Reduction |
|---|---|---|---|
| TMT Bars | 18% | 5% | 72% reduction! |
| Steel Pipes | 18% | 5% | 72% reduction! |
| Steel Scrap | 18% | 5% | 72% reduction! |
📊 Why Steel Got MASSIVE GST Cut?
- 🏗️ Housing Mission: Support PM Awas Yojana & affordable housing
- 🌉 Infrastructure Push: Make roads, bridges, metro projects cheaper
- 💰 Cost Reduction: Lower construction costs = lower property prices
- ♻️ Recycling Boost: 5% on scrap encourages steel recycling
- 🏭 Industry Support: Helps steel sector vs imports
- 📈 Economic Growth: Construction sector major employment generator
🔩 Pig Iron, Ferro-Alloys & Scrap (HSN 7201-7204)
HSN 7201 - Pig Iron and Spiegeleisen
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7201 10 00 | Non-alloy pig iron containing by weight 0.5% or less of phosphorus | 5% ↓ WAS 18% | Basic pig iron, foundry pig iron |
| 7201 20 00 | Non-alloy pig iron containing by weight more than 0.5% of phosphorus | 5% ↓ WAS 18% | High-phosphorus pig iron |
| 7201 50 00 | Alloy pig iron; spiegeleisen | 5% ↓ WAS 18% | Special alloy pig iron, spiegeleisen |
HSN 7202 - Ferro-Alloys
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7202 11 00 | Ferro-manganese (containing by weight more than 2% of carbon) | 5% ↓ WAS 18% | High-carbon ferro-manganese |
| 7202 19 00 | Other ferro-manganese | 5% ↓ WAS 18% | Low-carbon ferro-manganese |
| 7202 21 00 | Ferro-silicon (containing by weight more than 55% of silicon) | 5% ↓ WAS 18% | High-silicon ferro-silicon |
| 7202 29 00 | Other ferro-silicon | 5% ↓ WAS 18% | Standard ferro-silicon |
| 7202 30 00 | Ferro-silico-manganese | 5% ↓ WAS 18% | Ferro-silico-manganese alloy |
| 7202 41 00 | Ferro-chromium (containing by weight more than 4% of carbon) | 5% ↓ WAS 18% | High-carbon ferro-chromium |
| 7202 49 00 | Other ferro-chromium | 5% ↓ WAS 18% | Low-carbon ferro-chromium |
| 7202 50 00 | Ferro-silico-chromium | 5% ↓ WAS 18% | Ferro-silico-chromium alloy |
| 7202 60 00 | Ferro-nickel | 5% ↓ WAS 18% | Ferro-nickel alloy |
| 7202 70 00 | Ferro-molybdenum | 5% ↓ WAS 18% | Ferro-molybdenum alloy |
| 7202 80 00 | Ferro-tungsten and ferro-silico-tungsten | 5% ↓ WAS 18% | Ferro-tungsten alloys |
| 7202 91 00 | Ferro-titanium and ferro-silico-titanium | 5% ↓ WAS 18% | Ferro-titanium alloys |
| 7202 92 00 | Ferro-vanadium | 5% ↓ WAS 18% | Ferro-vanadium alloy |
| 7202 93 00 | Ferro-niobium | 5% ↓ WAS 18% | Ferro-niobium alloy |
| 7202 99 00 | Other ferro-alloys | 5% ↓ WAS 18% | Other specialty ferro-alloys |
HSN 7204 - Ferrous Waste and Scrap
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7204 10 00 | Waste and scrap of cast iron | 5% ↓ WAS 18% | Cast iron scrap, breaking scrap |
| 7204 21 00 | Waste and scrap of stainless steel | 5% ↓ WAS 18% | Stainless steel scrap |
| 7204 29 00 | Other waste and scrap of alloy steel | 5% ↓ WAS 18% | Alloy steel scrap |
| 7204 30 00 | Waste and scrap of tinned iron or steel | 5% ↓ WAS 18% | Tin-plated scrap, used tin cans |
| 7204 41 00 | Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings | 5% ↓ WAS 18% | Steel turnings, metal chips |
| 7204 49 00 | Other waste and scrap | 5% ↓ WAS 18% | MS scrap, steel scrap, iron scrap |
| 7204 50 00 | Remelting scrap ingots | 5% ↓ WAS 18% | Remelting ingots for foundries |
♻️ Steel Scrap at 5% GST - Recycling Sector Boost!
- ✅ Policy Impact: 18% → 5% GST on steel scrap encourages recycling
- ✅ Environmental Benefit: More scrap collection = less mining/virgin steel
- ✅ Industry Support: Lowers cost for steel manufacturers using scrap
- 💰 Price Effect: ₹1 lakh scrap → GST reduced from ₹18,000 to ₹5,000
- 🌍 Circular Economy: Promotes sustainable steel production
🏗️ STEEL BARS & RODS - TMT (HSN 7213-7215)
🏗️ ALL TMT Bars & Steel Rods at 5% GST!
This is the BIGGEST GST relief for construction sector! ALL steel reinforcement bars, TMT bars, steel rods now attract only 5% GST (reduced from 18%), making construction materials 13% cheaper.
HSN 7213 - Bars and Rods, Hot-Rolled (Irregularly Wound Coils)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7213 10 00 | Containing indentations, ribs, grooves (reinforcing bars and rods) | 5% ↓ WAS 18%! | TMT bars, Fe-415, Fe-500, Fe-550 rods |
| 7213 20 00 | Other, of free-cutting steel | 5% ↓ WAS 18% | Free-cutting steel rods |
| 7213 91 00 | Of circular cross-section measuring less than 14 mm in diameter | 5% ↓ WAS 18% | Small diameter steel wire rods |
| 7213 99 00 | Other | 5% ↓ WAS 18% | Other hot-rolled rods |
HSN 7214 - Other Bars and Rods of Iron or Non-Alloy Steel
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7214 10 00 | Forged bars and rods | 5% ↓ WAS 18% | Forged steel bars |
| 7214 20 00 | Containing indentations, ribs, grooves (concrete reinforcing bars and rods) | 5% ↓ WAS 18%! | TMT bars, HYSD bars, reinforcement rods |
| 7214 30 00 | Other, of free-cutting steel | 5% ↓ WAS 18% | Free-cutting steel bars |
| 7214 91 00 | Of rectangular (other than square) cross-section | 5% ↓ WAS 18% | Rectangular steel bars, flats |
| 7214 99 00 | Other | 5% ↓ WAS 18% | Round bars, square bars, hex bars |
HSN 7215 - Other Bars and Rods of Iron or Non-Alloy Steel
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7215 10 00 | Of free-cutting steel, not further worked than cold-formed or cold-finished | 5% ↓ WAS 18% | Cold-finished free-cutting bars |
| 7215 50 00 | Other, not further worked than cold-formed or cold-finished | 5% ↓ WAS 18% | Cold-drawn steel bars |
| 7215 90 00 | Other | 5% ↓ WAS 18% | Other finished steel bars |
💰 TMT Bar Price Impact - OLD vs NEW GST:
| Quantity | Base Price | OLD GST (18%) | NEW GST (5%) | Savings |
|---|---|---|---|---|
| 1 Tonne TMT | ₹50,000 | ₹59,000 | ₹52,500 | ₹6,500 |
| 10 Tonne TMT | ₹5,00,000 | ₹5,90,000 | ₹5,25,000 | ₹65,000 |
| 100 Tonne TMT | ₹50,00,000 | ₹59,00,000 | ₹52,50,000 | ₹6,50,000 |
MASSIVE SAVINGS: For typical 2BHK flat needing 2 tonnes TMT → ₹13,000 saved!
🚰 STEEL PIPES & TUBES (HSN 7304-7306)
🚰 ALL Steel Pipes & Tubes at 5% GST!
Steel pipes for construction, plumbing, water supply, drainage now attract only 5% GST (reduced from 18%), providing major relief to infrastructure and building projects.
HSN 7304 - Tubes, Pipes and Hollow Profiles, Seamless
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7304 11 00 | Line pipe used for oil or gas pipelines (stainless steel) | 5% ↓ WAS 18% | Stainless steel oil/gas pipes |
| 7304 19 00 | Other line pipes (stainless steel) | 5% ↓ WAS 18% | Stainless steel seamless pipes |
| 7304 22 00 | Drill pipe of stainless steel | 5% ↓ WAS 18% | Drilling pipes for oil/gas |
| 7304 23 00 | Other drill pipe of stainless steel | 5% ↓ WAS 18% | Other stainless drilling pipes |
| 7304 24 00 | Other, of stainless steel | 5% ↓ WAS 18% | Stainless seamless tubes |
| 7304 31 00 | Cold-drawn or cold-rolled (cold-reduced) | 5% ↓ WAS 18% | Precision steel tubes |
| 7304 39 00 | Other | 5% ↓ WAS 18% | Standard seamless steel pipes |
| 7304 41 00 | Cold-drawn or cold-rolled (cold-reduced) | 5% ↓ WAS 18% | Cold-drawn seamless pipes |
| 7304 49 00 | Other | 5% ↓ WAS 18% | Hot-finished seamless pipes |
| 7304 51 00 | Cold-drawn or cold-rolled (cold-reduced) | 5% ↓ WAS 18% | Precision seamless tubes |
| 7304 59 00 | Other | 5% ↓ WAS 18% | Other alloy seamless pipes |
| 7304 90 00 | Other | 5% ↓ WAS 18% | Other seamless pipes/tubes |
HSN 7305 - Other Tubes and Pipes (Longitudinally Submerged Arc Welded)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7305 11 00 | Longitudinally submerged arc welded (line pipe for oil/gas) | 5% ↓ WAS 18% | SAW pipes for pipelines |
| 7305 12 00 | Other, longitudinally welded | 5% ↓ WAS 18% | Welded steel pipes |
| 7305 19 00 | Other | 5% ↓ WAS 18% | Other welded pipes |
| 7305 20 00 | Casing of a kind used in drilling for oil or gas | 5% ↓ WAS 18% | Oil well casing pipes |
| 7305 31 00 | Longitudinally welded | 5% ↓ WAS 18% | Welded steel tubes |
| 7305 39 00 | Other | 5% ↓ WAS 18% | Other large diameter pipes |
| 7305 90 00 | Other | 5% ↓ WAS 18% | Other steel pipes/tubes |
HSN 7306 - Other Tubes, Pipes and Hollow Profiles (Welded, Riveted or Similarly Closed)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7306 11 00 | Line pipe used for oil or gas pipelines (welded, stainless steel) | 5% ↓ WAS 18% | Stainless welded oil/gas pipes |
| 7306 19 00 | Other (welded, stainless steel) | 5% ↓ WAS 18% | Stainless welded pipes |
| 7306 21 00 | Line pipe used for oil or gas pipelines (welded) | 5% ↓ WAS 18% | MS welded pipeline pipes |
| 7306 29 00 | Other (welded) | 5% ↓ WAS 18% | MS welded pipes for construction |
| 7306 30 10 | Circular, welded (other) | 5% ↓ WAS 18% | GI pipes, MS pipes (construction) |
| 7306 30 20 | Rectangular or square, welded | 5% ↓ WAS 18% | Rectangular/square steel tubes |
| 7306 30 90 | Other | 5% ↓ WAS 18% | Other welded hollow sections |
| 7306 40 00 | Other, welded, of circular cross-section, of stainless steel | 5% ↓ WAS 18% | Stainless steel welded tubes |
| 7306 50 00 | Other, welded, of circular cross-section, of other alloy steel | 5% ↓ WAS 18% | Alloy steel welded pipes |
| 7306 61 00 | Of square or rectangular cross-section (welded) | 5% ↓ WAS 18% | Square/rectangular hollow sections |
| 7306 69 00 | Of other non-circular cross-section (welded) | 5% ↓ WAS 18% | Other shaped hollow sections |
| 7306 90 00 | Other | 5% ↓ WAS 18% | Other pipes/tubes |
🚰 Steel Pipe Price Impact - Construction Relief!
| Pipe Type | Quantity | OLD Price (18%) | NEW Price (5%) | Savings |
|---|---|---|---|---|
| GI Pipe (4") | 100 metres | ₹1,18,000 | ₹1,05,000 | ₹13,000 |
| MS Pipe (6") | 50 metres | ₹59,000 | ₹52,500 | ₹6,500 |
Plumbing & drainage costs significantly reduced for builders!
🧲 STEEL WIRE (HSN 7217)
HSN 7217 - Wire of Iron or Non-Alloy Steel
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7217 10 00 | Not plated or coated, whether or not polished | 5% ↓ WAS 18% | Binding wire, MS wire |
| 7217 20 00 | Plated or coated with zinc | 5% ↓ WAS 18% | GI wire, galvanized wire |
| 7217 30 00 | Plated or coated with other base metals | 5% ↓ WAS 18% | Copper-coated wire, other coated wire |
| 7217 90 00 | Other | 5% ↓ WAS 18% | Other steel wire |
📋 GST 2026 Compliance Points for Chapter 72
🏗️ Construction Material Dealers
- TMT bars: 5% GST (REDUCED!)
- Steel rods: 5% GST
- Steel pipes: 5% GST
- Update invoicing systems immediately
- Pass benefit to customers
🔩 Steel Pipe Manufacturers
- Seamless pipes: 5% GST
- Welded pipes: 5% GST
- GI/MS pipes: 5% GST
- ITC available on raw materials
- Lower output tax burden
♻️ Steel Scrap Traders
- ALL steel scrap: 5% GST
- MS scrap, SS scrap: 5% GST
- Massive reduction from 18%
- Encourages scrap collection
- Boosts circular economy
🏭 Steel Manufacturers
- Pig iron, ferro-alloys: 5% GST
- Raw material cost reduced
- Competitive vs imports
- ITC chain maintained
- Industry growth support
🎯 GST 2026 Steel Sector Impact Analysis
HISTORIC GST RELIEF: Steel Sector Game-Changer
- ✅ 72% Tax Reduction: 18% → 5% GST on construction steel
- ✅ Construction Boost: Lower building costs = more affordable housing
- ✅ Infrastructure Accelerator: Cheaper steel = faster project execution
- ✅ Industry Support: Domestic steel competitive vs imports
- ✅ Recycling Promotion: 5% on scrap encourages circular economy
- ✅ Job Creation: More construction activity = more employment
- ✅ Economic Multiplier: Steel sector drives 200+ allied industries
Sectoral Impact: Who Benefits Most?
| Sector | Impact | Benefit |
|---|---|---|
| Affordable Housing | HIGH | 13% cost reduction on steel → lower flat prices |
| Infrastructure Projects | HIGH | Bridges, roads, metros cheaper by 5-8% |
| Steel Industry | MEDIUM | Demand boost, better cash flow |
| Real Estate Developers | HIGH | Major input cost savings |
| Individual Home Builders | HIGH | ₹1-2 lakh savings on typical house |
What About Fabricated Steel Articles?
- ⚠️ Chapter 73 Items: Still 18% GST (NOT reduced!)
- 🔩 Nails, Screws, Bolts: 18% GST (finished products)
- 🚪 Steel Doors, Windows: 18% GST (fabricated)
- 🏭 Steel Structures: 18% GST (assembled)
- 📊 Logic: Raw/semi-finished at 5%, finished products at 18%
- ⚖️ Distinction Important: TMT bars (5%) ≠ Fabricated grills (18%)
❓ Frequently Asked Questions (FAQs) - HSN Chapter 72
Answer: TMT bars attract 5% GST (REDUCED from 18% under GST 2.0!).
All TMT/Reinforcement Bars at 5% GST:
- 🏗️ Fe-415 TMT bars → 5% GST
- 🏗️ Fe-500 TMT bars → 5% GST
- 🏗️ Fe-550 TMT bars → 5% GST
- 🏗️ HYSD bars → 5% GST
- 🏗️ CTD bars → 5% GST
- 🏗️ All diameters (8mm to 32mm) → 5% GST
Price Impact Example:
- 1 tonne TMT bars @ ₹50,000
- OLD: ₹50,000 + 18% GST (₹9,000) = ₹59,000
- NEW: ₹50,000 + 5% GST (₹2,500) = ₹52,500
- SAVINGS: ₹6,500 per tonne!
Answer: ALL steel pipes attract 5% GST (REDUCED from 18%).
Steel Pipes at 5% GST Include:
- 🚰 GI (Galvanized Iron) pipes → 5% GST
- 🚰 MS (Mild Steel) pipes → 5% GST
- 🚰 Seamless steel pipes → 5% GST
- 🚰 Welded steel pipes → 5% GST
- 🚰 ERW pipes → 5% GST
- 🚰 Stainless steel pipes → 5% GST
- 🚰 Square/rectangular hollow sections → 5% GST
All diameters and all applications = Uniform 5% GST!
Answer: Effective from September 22, 2025 (GST 2.0 implementation date).
Timeline of Change:
- 📅 Before Sept 22, 2025: TMT bars, pipes, steel = 18% GST
- 📅 Sept 22, 2025: GST 2.0 announced, rate reduced to 5%
- 📅 Current (Feb 2026): 5% GST continues on construction steel
Policy Rationale:
- 🏠 Support affordable housing (PM Awas Yojana)
- 🌉 Accelerate infrastructure development
- 📉 Reduce construction costs for consumers
- 🏭 Boost domestic steel industry
Answer: Steel scrap attracts 5% GST (REDUCED from 18%).
All Types of Steel Scrap at 5% GST:
- ♻️ MS (Mild Steel) scrap → 5% GST
- ♻️ Cast iron scrap → 5% GST
- ♻️ Stainless steel scrap → 5% GST
- ♻️ Alloy steel scrap → 5% GST
- ♻️ Steel turnings, chips → 5% GST
- ♻️ Remelting scrap ingots → 5% GST
Impact:
- ✅ Encourages steel recycling (circular economy)
- ✅ Lowers cost for steel manufacturers using scrap
- ✅ Boosts scrap collection industry
- ✅ Reduces dependence on virgin iron ore
Answer: Significant savings - ₹13,000 per ₹1 lakh spent on TMT bars!
Savings Calculator for Typical House Construction:
| House Type | TMT Required | OLD Cost (18%) | NEW Cost (5%) | Savings |
|---|---|---|---|---|
| 1BHK (600 sq ft) | 1.5 tonnes | ₹88,500 | ₹78,750 | ₹9,750 |
| 2BHK (1000 sq ft) | 2.5 tonnes | ₹1,47,500 | ₹1,31,250 | ₹16,250 |
| 3BHK (1500 sq ft) | 4 tonnes | ₹2,36,000 | ₹2,10,000 | ₹26,000 |
| Villa (3000 sq ft) | 8 tonnes | ₹4,72,000 | ₹4,20,000 | ₹52,000 |
Note: Calculation assumes ₹50,000 per tonne base price
Answer: Chapter 72 (raw/semi-finished steel) = 5% GST; Chapter 73 (fabricated articles) = 18% GST.
Chapter 72 - Raw/Semi-Finished Steel (5% GST):
- 🟢 TMT bars, steel rods → 5% GST
- 🟢 Steel pipes, tubes → 5% GST
- 🟢 Steel wire → 5% GST
- 🟢 Pig iron, ferro-alloys → 5% GST
- 🟢 Steel scrap → 5% GST
Chapter 73 - Fabricated Steel Articles (18% GST):
- 🔴 Nails, screws, bolts, nuts → 18% GST
- 🔴 Steel doors, windows, grills → 18% GST
- 🔴 Steel furniture → 18% GST
- 🔴 Steel wire mesh, netting → 18% GST
- 🔴 Steel structures, towers → 18% GST
Logic: Raw materials get concessional 5%; finished products get standard 18%.
Answer: YES, registered builders/contractors can claim ITC with conditions.
ITC Available For:
- ✅ Builders registered under GST (mandatory turnover > ₹40 lakh)
- ✅ TMT bars, steel pipes purchased for construction projects
- ✅ Used in taxable construction services (commercial projects)
- ✅ Proper GST invoices from suppliers
ITC NOT Available For:
- ❌ Construction of own immovable property (self-use)
- ❌ Certain residential construction under notifications
- ❌ Unregistered builders (turnover < ₹40 lakh)
Example ITC Calculation:
- Purchased: 10 tonnes TMT @ ₹52,500/tonne = ₹5,25,000 (incl 5% GST)
- GST paid: ₹25,000 (5% of ₹5 lakh base)
- ITC claimable: ₹25,000 (if conditions met)
- Effective cost after ITC: ₹5,00,000
Answer: Stainless steel pipes attract 5% GST (same as MS/GI pipes).
- 🚰 Stainless steel seamless pipes → 5% GST
- 🚰 Stainless steel welded pipes → 5% GST
- 🚰 SS 304 pipes → 5% GST
- 🚰 SS 316 pipes → 5% GST
- 🚰 All diameters → 5% GST
No differentiation based on steel grade or quality - uniform 5% GST!
Answer: YES - steel prices SHOULD reduce proportionally if GST benefit is passed on.
Expected Price Reduction:
- 📉 GST Component: Reduced from 18% to 5% = 13% decrease
- 📉 On Base Price: If base = ₹100, old price = ₹118, new price = ₹105
- 📉 Net Reduction: ₹118 - ₹105 = ₹13 (11% lower final price)
Real Market Scenario:
- ✅ Large organized dealers passing full benefit
- ⚠️ Some dealers may absorb partial benefit (profit margin adjustment)
- ✅ Competition forcing price reduction
- ✅ Government monitoring for anti-profiteering
Pro Tip: Compare prices from multiple dealers to ensure you get GST benefit!
Answer: Pig iron and ferro-alloys attract 5% GST (REDUCED from 18%).
All Raw Steel Materials at 5% GST:
- 🔩 Pig iron (all grades) → 5% GST
- 🔩 Ferro-manganese → 5% GST
- 🔩 Ferro-silicon → 5% GST
- 🔩 Ferro-chromium → 5% GST
- 🔩 Ferro-nickel → 5% GST
- 🔩 Spiegeleisen → 5% GST
- 🔩 All other ferro-alloys → 5% GST
Impact:
- ✅ Lower input cost for steel manufacturers
- ✅ Supports domestic steel production
- ✅ Improves competitiveness vs imports
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