HSN Codes for Steel and Iron Products in India: Classification and GST Rates

To select HSN codes for steel and iron products, start with the goods as supplied and document the characteristics that determine their tariff classification. 

Use the following checks before selecting a detailed code:

• Identify whether the material is iron, non-alloy steel, stainless steel or another alloy steel.
• Record the form, such as ingot, semi-finished product, flat product, bar, rod, wire or finished article.
• For flat products, record width, thickness, rolling process and any cladding, plating or coating.
• For bars and rods, check whether they are presented in qualifying irregularly wound coils and how they have been worked.
• Compare the goods with the relevant heading, subheading and section or chapter notes.
• Where the product is a finished article, check whether Chapter 73 or another chapter applies instead of Chapter 72.

For HSN codes for steel and iron products, consider two uncoated, non-alloy steel products that are each 700 mm wide. A hot-rolled product would lead you to examine heading 7208, while a cold-rolled product would lead you to examine heading 7209. This is a classification illustration, not a final six-digit or eight-digit code.

Check Chapter 73 when the goods are an article of iron or steel rather than a material form covered by Chapter 72; HSN codes for steel and iron products can change when material becomes a finished article. Chapter 73 includes specified tubes and pipes, fittings, structures, wire ropes, nails, screws, bolts, containers and other articles.

For example, heading 7217 covers wire of iron or non-alloy steel, while certain stranded wire ropes are examined under heading 7312. Similarly, a fabricated structure may require heading 7308 rather than the Chapter 72 heading of the steel used to make it.

The product’s condition at the time of supply matters. Do not classify a finished article solely by the HSN code used when its raw material was purchased.

India’s import and export framework uses the eight-digit Indian Trade Classification based on Harmonised System coding, while HSN codes for steel and iron products identify the broader Harmonised System structure, commonly called ITC(HS). A four-digit HSN code for steel and iron products identifies only a broad product group; the detailed Indian code can determine the policy entry and documentation requirements applicable to the goods.

Importers and exporters should check the Directorate General of Foreign Trade (DGFT) ITC(HS) policy search for the detailed code and the policy applicable to the shipment. Classification alone does not establish the customs duty or GST rate.

For HSN codes for steel and iron products used in an export or import transaction, verify the detailed tariff description, policy condition, applicable customs notifications and GST treatment separately. This is particularly important for alloy grades, coated products and processed articles.

The HSN codes for steel and iron products shown on a GST tax invoice must follow the applicable digit requirement, which depends on the supplier’s aggregate turnover in the preceding financial year. Under Notification No. 78/2020–Central Tax, the requirement is four digits for suppliers with turnover up to Rs. 5 crore and six digits for suppliers with turnover above Rs. 5 crore, effective from 1 April 2021.

The notification also contains an exception for specified supplies by certain suppliers to unregistered persons. The HSN requirement on invoices should therefore be checked against the applicable transaction and invoice circumstances, and return reporting should be verified separately.

No. HSN codes for steel and iron products identify the goods for classification, while the GST rate comes from the applicable rate notification and its exact description, conditions and exclusions.

For HSN codes for steel and iron products, the current CBIC GST rate schedule lists Chapter 72 groups including headings 7201, 7202, 7203, 7204, 7206, 7207, 7208 to 7212, 7213 to 7215, 7216, 7217, 7218, 7219 and 7220, 7221 and 7222, 7224, 7225 and 7226, 7227 and 7228, and 7229 at 18% under the listed entries. The precise tariff item and transaction should still be checked before invoicing.

A four-digit HSN code for steel and iron products should therefore not be treated as a blanket GST-rate instruction for every possible steel product. If the goods are processed into an article, the applicable classification and rate may need to be checked under another heading.

Steel businesses can reduce errors when using HSN codes for steel and iron products by avoiding broad descriptions and retaining evidence for the code selected. Common mistakes include:

• Using “steel” as the only classification description without recording grade, composition or form.
• Selecting a flat-product heading without checking width, rolling process, thickness and coating.
• Treating a Chapter 72 raw-material code as the correct code for a fabricated Chapter 73 article.
• Using a four-digit heading as though it were always the final Indian tariff code.
• Applying a GST rate from a general product description without checking the current rate entry and conditions.
• Using different product descriptions or HSN codes across invoices, stock records and tax returns without resolving the classification difference.

Keep purchase documents, product specifications and supporting records for HSN codes for steel and iron products for the HSN codes for steel and iron products, test certificates where relevant, technical descriptions and classification workings together. Where two headings appear plausible, resolve the classification before issuing invoices or quoting a tax rate.

A steel trader using HSN codes for steel and iron products may need to fund inventory before customers settle invoices, while a manufacturer may need working capital for billets, sheets, bars, processing and machinery. Estimating these costs against expected business receipts helps you decide how much funding is actually required.

For eligible businesses, the Bajaj Finance Business Loan offers loan amounts from Rs. 2 lakh to Rs. 80 lakh, with repayment tenures from 12 months to 96 months, subject to business loan eligibility and applicable terms. 

Before borrowing, compare the inventory or equipment requirement with the HSN codes for steel and iron products actually used in the business, total borrowing cost and repayment schedule with expected business receipts. The loan should match a defined funding requirement rather than an HSN classification alone.

• Click the 'Check Loan Offer' button to open the online application form.
• Enter basic details, including Name, PAN, Date of Birth, PIN Code, and Business details, and click 'CONTINUE'.
• Complete banking verification and continue.
• View your offer details, select the loan type — Term Loan, Flexi Dropline Loan, or Flexi Hybrid Loan — and choose the repayment tenure.
• Review the details and submit the business loan application.