HSN Chapter 75: Nickel & Articles Thereof GST Rates 2026

Answer: ALL nickel products attract 18% GST (UNCHANGED under GST 2.0).

Complete Nickel Products at 18% GST:

• 🔘 Nickel mattes, nickel oxide → 18% GST
• 🔘 Unwrought nickel (pure nickel) → 18% GST
• 🔘 Nickel alloys (Monel, Inconel, Hastelloy) → 18% GST
• 🔘 Nickel waste and scrap → 18% GST
• 🔘 Nickel powders and flakes → 18% GST
• 🔘 Nickel bars, rods, wire → 18% GST
• 🔘 Nickel plates, sheets, strip, foil → 18% GST
• 🔘 Nickel tubes, pipes, fittings → 18% GST
• 🔘 Other nickel articles → 18% GST

⚠️ Important: Unlike iron/steel which got reduced to 5%, nickel maintains standard 18% GST as it's a specialized industrial metal, not a mass consumer product.

Answer: ALL nickel alloys attract 18% GST (UNCHANGED).

Common Nickel Alloys at 18% GST:

• 🔘 Monel (Ni-Cu alloy) → 18% GST (marine, chemical applications)
• 🔘 Inconel (Ni-Cr alloy) → 18% GST (high-temperature aerospace)
• 🔘 Hastelloy → 18% GST (corrosion-resistant chemical equipment)
• 🔘 Cupro-nickel (Cu-Ni) → 18% GST (coins, marine hardware)
• 🔘 Nichrome (Ni-Cr) → 18% GST (heating elements, resistance wire)
• 🔘 Nickel-iron alloys → 18% GST (batteries, magnets)

Applications: These superalloys are used in aerospace turbines, chemical reactors, marine equipment, and high-temperature industrial applications where standard materials fail.

Answer: NO - Chapter 75 rates remained COMPLETELY UNCHANGED at 18% GST.

GST 2.0 Impact on Nickel (Sept 22, 2025):

• 🔴 Unwrought nickel: 18% GST → 18% GST (NO CHANGE)
• 🔴 Nickel alloys: 18% GST → 18% GST (NO CHANGE)
• 🔴 Nickel scrap: 18% GST → 18% GST (NO CHANGE)
• 🔴 Nickel articles: 18% GST → 18% GST (NO CHANGE)

Why No Change?

• 🏭 Nickel is specialized industrial metal, not consumer product
• 💰 High-value material used in aerospace, chemicals, electronics
• ⚖️ No affordability concerns (unlike steel for construction/housing)
• 📈 Standard industrial taxation maintained

Comparison: Steel got relief (18% → 5%) for construction support; nickel remains industrial at 18%.

Answer: Nickel scrap attracts 18% GST (UNCHANGED).

• ♻️ Nickel waste and scrap → 18% GST
• ♻️ Nickel turnings, dross → 18% GST
• ♻️ Used nickel components → 18% GST
• ♻️ Nickel alloy scrap → 18% GST

⚠️ Key Difference from Steel Scrap:

Nickel's high intrinsic value and specialized industrial use keeps scrap at standard 18% rate.

Answer: Nichrome wire attracts 18% GST as a nickel alloy product.

• 🔥 Nichrome wire (Ni-Cr 80/20, 60/15) → 18% GST
• 🔥 Resistance wire → 18% GST
• 🔥 Heating element coils → 18% GST

Applications of Nichrome:

• ⚡ Electric heaters, room heaters
• 🍞 Toaster heating elements
• 🔥 Industrial furnaces, kilns
• 🧪 Laboratory hot plates
• 💈 Hair dryers, hair straighteners

Classification: Nichrome falls under HSN 7505 22 00 (nickel alloy wire) at 18% GST. Even though it's used in household appliances, the raw wire itself is an industrial input, not a finished consumer product.

Answer: Nickel (pure/alloys) = 18% GST; Stainless steel = varies by form.

Key Differences:

Clarification: Stainless steel CONTAINS nickel (8-12% typically) but is classified as iron/steel product (Chapter 72/73), not nickel product (Chapter 75). Pure nickel and nickel-rich alloys (>50% Ni) fall under Chapter 75 at 18% GST.

Answer: Electroplating nickel anodes attract 18% GST.

• ⚡ Nickel anodes (electrolytic nickel) → 18% GST
• ⚡ Nickel plating anodes → 18% GST
• ⚡ Nickel electrodes → 18% GST

Electroplating Industry:

• 🔧 Used for nickel plating on steel, brass, plastic
• 🚗 Automotive parts (corrosion resistance)
• 🔩 Fasteners, hardware (decorative + protective coating)
• 🪙 Electroforming, coin production
• ⚙️ Industrial machinery components

Classification: HSN 7508 90 10 covers electroplating anodes at standard 18% GST. The electroplating service itself may have different GST rates depending on the nature of service.

Answer: YES, registered manufacturers can claim full ITC on nickel inputs.

ITC Available For:

• ✅ Stainless steel manufacturers buying nickel (input for production)
• ✅ Battery manufacturers buying nickel powder/hydroxide
• ✅ Aerospace companies buying Inconel/Hastelloy (raw material)
• ✅ Chemical plants buying nickel tubes/pipes (capital goods)
• ✅ Electroplating units buying nickel anodes (consumables)
• ✅ Alloy manufacturers buying unwrought nickel

ITC Conditions:

• ✅ Must be used in business/furtherance of business
• ✅ Proper GST invoices from registered suppliers
• ✅ Used for taxable supplies (not exempt supplies)
• ✅ Supplier must have deposited GST to government

Example: Steel manufacturer buys ₹10 lakh nickel + ₹1.8 lakh GST (18%) = ₹11.8 lakh. Can claim ₹1.8 lakh ITC, reducing output GST liability.

Answer: Nickel remains at 18% due to its specialized industrial nature vs steel's mass consumer/construction use.

Key Reasons for Different Rates:

Policy Logic: Government reduces GST on items with mass consumer impact (steel, cement) but maintains standard rates on specialty industrial materials (nickel, specialty alloys).

Answer: Finished Ni-Cd and Ni-MH batteries attract 18% GST (classified under Chapter 85, not Chapter 75).

Classification Clarity:

Battery Applications:

• 🔋 Rechargeable AA/AAA batteries (Ni-MH)
• 🔋 Power tools, cordless equipment (Ni-Cd)
• 🔋 Emergency lighting, exit signs
• 🔋 Two-wheeler batteries (some models)

Note: While nickel is a key component (18% GST as raw material), the finished battery is classified as electrical equipment (Chapter 85) also at 18% GST.