GST Rate for Articles of Iron or Steel and HSN Code 73

In 2024, India produced around 118,201 kt of steel, securing its position as the world’s second-largest steel producer. With the iron besides steel industry in India expected to generate around $128.5 billion in 2025, the steel GST rate remains an important concern.

This article will discuss the pertinence of steel hsn code 73, which includes the current GST on iron and steel hsn code, review the taxation landscape before GST, and discuss the broader implications of these taxation changes on the iron and steel industry in India.

What is the GST on the Iron and Steel HSN Code?

Iron and steel bars, scraps, pipes, sheets, and wires are generally subject to an 18% GST rate in India.

Latest GST Rates on Steel & Iron Bars and Other Products in 2025

As per GST Guidelines, Here’s the list of GST Rates on Steel and Iron based products

HSN Code	Steel and Iron Products	GST Rate
7323	Granulated slag sand from the manufacture of iron or steel	12%
7323	Iron or steel wool, pot scourers, scouring or polishing pads, gloves, and similar cleaning tools.	18%
7324	Iron and steel sanitary ware and their components.	18%
7325	Other Cast Iron or Steel Items	18%
7326	Other Articles of Iron or Steel	18%
7326	Art ware of iron	12%

The introduction of GST on steel has brought about notable changes in the pricing of various steel and iron products. For instance, kitchen utensils like stainless steel cookers, pans, spoons, and ladles have become extra affordable under steel GST rates, with a reduced rate of 12% compared to the previous tax rate of 17.5%. On the other hand, items such as barbecue sets, radiators, and rods have seen a slight increase in cost under GST on steel and GST on iron at 18%, likened to the earlier rate of 17.5%.

Furthermore, the GST rate on major inputs for iron, besides the steel industry, such as coal, iron ore, and conveyance costs, has been set at a lower rate of 5%. This reduction has helped in lowering logistics and production costs, promoting the industry overall.

Suggested Read: Knife HSN Code and GST Rate - 8208

Latest GST Rates on Steel & Iron Scraps and Powders in 2025

As per GST guidelines, Here’s the list of GST rates on steel and iron scraps and powders.

HSN Code	Steel and Iron Products	GST Rate
2618	Granulated slag sand from the manufacture of iron or steel	5%
2619	Slag waste from the manufacture of iron or steel	18%
2619	Dross (other than granulated slag) waste from the manufacture of iron or steel	18%
2619	Scalings and other waste from manufacture of iron or steel	18%
7204	Ferrous waste of iron or steel	18%
7204	Remelting scrap ingots of iron or steel	18%
7205	Pig iron granules and powders	18%
7205	Spiegeleisen granules and powders	18%

Features of export under the GST scheme

The goods and services can be full to outside India either on payment of IGST (Integrated Goods and Services Tax), claimable by way of refund after the goods have been exported, or under Bond or Letter of Undertaking (LUT) short of payment of IGST.

For goods and services that are shipped outdoors in India under LUT, businesses can validate refunds of accumulated ITC on account of export.

The shipping bill filed with Customs is considered a claim to be refunded for payment of IGST and shall be deemed to have been filed after submission of the spread general manifest and provision of a valid reappearance in Form GSTR-3 by the applicant.

Disclaimer: Rates given above are updated up to the GST (Rate) notification no. 05/2020 dated 16th October 2020 to the best of our information. We have sourced the HSN code information from the master codes published on the NIC's GST e-Invoice system. There may be variations due to updates by the government. Kindly note that we are not responsible for any wrong information. If you need information about the "Effective Date" for every GST or cess rates, then please visit the CBIC website.

Conclusion

The implementation of GST on steel and GST on iron has transported a more consistent and simplified tax structure to the iron and steel industry. While some foodstuffs have become cheaper, others have seen a slight surge in cost. Overall, the unified tax rate has streamlined the taxation process, providing a balanced impression on the sector.

Exporting goods or amenities are considered zero-rated supplies, meaning they are exempt from taxation at either the input or final creation stage. This indicates that no goods and services cess will be added to the sale price of goods and services envisioned for export. Under the Indian GST law, the supply of goods or services from one state to another is classified as interstate supply – to which the Integrated Goods Besides Services Tax (IGST) is applied. For tax liability, the service recipient would be liable to pay IGST under reverse charge.

Suggested Read: Coconut HSN Code & GST Rate - 0801

FAQs

1. What if export proceeds are not received under GST?

In case the exporter does not realize the export incomes within the prescribed time limit, the amount of reimbursement to the extent of non-realization of sale incomes has to be deposited along with the applicable interest within thirty days of the finishing of the said period.

2. What happens if an export payment is not received?

Legal Implications: Non-fulfillment of export responsibilities may result in legal actions under the Customs Act, including the possibility of goods being seized, recovery proceedings initiated, or cancellation of assistance obtained under the scheme.

3. What is the time limit for achieving export proceeds?

Presently, the value of the goods or software exports completed by the exporters is required to be realized fully and expelled to the country within a period of 9 months from the date of exports.

4. Is LUT mandatory for the export of services?

It is mandatory to furnish the Letter of Undertaking (LUT) to spread the goods, services, or both without paying the IGST. What happens when the exporter fails to furnish the LUT? In case the exporter fails to offer the LUT, then he has to pay the IGST or furnish an export bond.

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