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India is currently the world’s second-largest producer of steel and iron, owing much of its dominance to the abundant availability of raw materials such as coal and iron ore. The Union Government has waived the custom duty on the import of key raw materials, including coking coal and ferronickel. This policy has effectively lowered domestic production costs, contributing to a reduction in the final price of steel and iron products.
The government has implemented a unified GST system, benefiting industries across India by reducing the cost of steel and iron products. These metals play a vital role in manufacturing key machine parts and fulfilling primary construction requirements.
The current GST regime on steel and iron continues to support industries that rely heavily on these materials in the production of goods and services.
Here are the GST rates in 2025 applicable to various iron and steel products manufactured across different industries in India:
| Description | IGST Rate |
|---|---|
Granulated slag (slag sand) from the production of iron or steel |
5% |
Kerosene stoves, wood-burning stoves, and kerosene burners, made of iron or steel |
12% |
Household articles, including tables, kitchenware, and utensils made of iron & steel |
12% |
Slag, dross (excluding granulated slag), scalings, and other waste from the manufacture of iron or steel |
18% |
Slag, ash, and residues (excluding those from iron or steel production) containing metals, arsenic, or their compounds |
18% |
Ferrous waste and scrap; remelted scrap ingots made of iron or steel |
18% |
Granules and powders of pig iron, spiegeleisen, iron, or steel |
18% |
Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203) |
18% |
Semi-finished iron or non-alloy steel products |
18% |
Flat-rolled products made from iron or non-alloy steel |
18% |
Bars and rods made of iron or non-alloy steel |
18% |
Angles, shapes, and sections of iron or non-alloy steel |
18% |
Wire made of iron or non-alloy steel |
18% |
Stainless steel in ingots or other primary forms; semi-finished products of stainless steel |
18% |
Flat-rolled products made of stainless steel |
18% |
Bars and rods made of stainless steel |
18% |
Wire made of stainless steel |
18% |
Other alloy steel in ingots or primary forms; semi-finished products of other alloy steel |
18% |
Flat-rolled products made of other alloy steel |
18% |
Bars and rods made of other alloy steel |
18% |
Wire made of other alloy steel |
18% |
Sheet piling made of iron or steel, including drilled, punched, or assembled elements |
18% |
Railway or tramway track construction material made of iron or steel |
18% |
Tubes, pipes, and hollow profiles (seamless) made of iron (excluding cast iron) or steel |
18% |
Other tubes and pipes (e.g., welded, riveted) made of iron or steel |
18% |
Tube or pipe fittings (e.g., couplings, elbows) made of iron or steel |
18% |
Structural components (excluding prefabricated buildings) made of iron or steel |
18% |
Reservoirs, tanks, vats, and similar containers made of iron or steel (for materials other than compressed or liquefied gas) |
18% |
Tanks, casks, drums, cans, and similar containers made of iron or steel (for materials other than compressed or liquefied gas) |
18% |
Containers for compressed or liquefied gas made of iron or steel |
18% |
Stranded wire, ropes, cables, plaited bands, and slings made of iron or steel, not electrically insulated |
18% |
Barbed wire made of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, used for fencing |
18% |
Cloth (including endless bands), grill, netting, and fencing made of iron or steel wire |
18% |
Chains and parts thereof made of iron or steel |
18% |
Anchors, grapnels, and parts thereof made of iron or steel |
18% |
Nails, tacks, drawing pins, corrugated nails, staples (excluding those of heading 8305), and similar articles made of iron or steel |
18% |
Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) made of iron or steel |
18% |
Knitting needles, bodkins, crochet hooks, embroidery stilettos, and similar articles made of iron or steel; safety pins and other pins made of iron or steel |
18% |
Springs and leaves for springs made of iron and steel |
18% |
Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers, and similar non-electric domestic appliances made of iron or steel |
18% |
Radiators for central heating (not electrically heated) and parts thereof made of iron or steel; air heaters and hot air distributors incorporating a motor-driven fan or blower, made of iron or steel |
18% |
Iron or steel wool; pot scourers and scouring or polishing pads, gloves, and the like made of iron or steel |
18% |
Sanitary ware and parts thereof made of iron and steel |
18% |
Other cast articles made of iron or steel |
18% |
Other articles made of iron or steel |
18% |
Unroasted iron pyrites |
5% |
Art ware of iron |
12% |
Iron ores and concentrates, including roasted iron pyrites |
18% |
Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 99.94%, in lumps, pellets or similar forms |
18% |
Tubes, pipes and hollow profiles, of cast iron |
18% |
Disclaimer: The GST rates listed above are for reference purposes only and may be subject to change based on government updates or amendments. The list does not cover all products or potential exemptions, and certain items may attract additional Cess. For the most up-to-date and comprehensive information, please refer to the official GST portal
Calculating GST on iron and steel products is straightforward. You multiply the applicable GST rate by the transaction value of the product. For example, if a steel rod costs ₹10,000 and the GST rate is 18%, the GST amount will be:
GST = 10,000 × 18% = ₹1,800
The total payable amount will be:
Total Price = Base Price + GST = ₹10,000 + ₹1,800 = ₹11,800
For items with different rates, such as 12% or 5%, the calculation follows the same formula.
Businesses purchasing iron and steel for manufacturing or resale can claim Input Tax Credit (ITC). ITC allows the GST paid on purchases to be offset against output GST liability.
Example:
Purchase of steel rods: ₹10,000 + ₹1,800 GST (18%)
ITC claimed: ₹1,800
Output GST on finished goods: ₹5,000
Net GST payable after ITC: ₹5,000 – ₹1,800 = ₹3,200
Note: ITC is not available for personal consumption or for construction/renovation of immovable property.
The introduction of GST has had a significant impact on the iron and steel industry in India. By implementing a unified tax system, it has simplified the indirect tax structure, benefiting manufacturers, suppliers, and consumers alike. The GST rate of 18% on most iron and steel products has led to a more transparent and efficient tax regime, reducing the cascading effect of multiple taxes.
For manufacturers, the elimination of excise duty and VAT, replaced by a single GST rate, has streamlined operations and reduced the compliance burden. This has resulted in cost savings and improved the competitiveness of domestic steel production.
For consumers, while the GST rate on iron and steel products has been consistent, the reduction in input costs for manufacturers has helped keep product prices stable, preventing sudden price hikes. Moreover, the ability to claim input tax credit has provided a relief to both manufacturers and end-users, further enhancing the affordability of iron and steel products.
The iron and steel sector, which plays a vital role in industries like construction, automotive, and infrastructure, has benefited from this simplified tax structure, contributing to the overall growth of these sectors.
The GST rate on iron and steel products in India is typically 18%. However, specific products, such as some steel scrap and raw materials, may attract a lower rate of 5%.
No, GST on steel is not refundable in the traditional sense. However, businesses can claim Input Tax Credit (ITC) on the GST paid for purchasing steel, which can be offset against their output GST liability. This helps to reduce the overall cost burden.
The introduction of GST has streamlined the tax structure for the iron and steel industry in India. By removing multiple layers of taxes, it has improved efficiency and reduced corruption. The unified tax system has also enhanced competitiveness, contributing to increased production and exports. As a result, India's economy has shown positive growth, with the iron and steel sectors benefiting significantly from this change.
Iron and steel products in India are generally taxed at 18% GST. However, certain inputs used in production, such as raw materials, may be taxed at a 5% GST rate.
Some iron and steel products subject to 18% GST include:
Drums, water tanks, cans, and reservoirs made of steel or iron
Lock gates, pillars, window frameworks, bridges, and related infrastructure
Sanitary ware and washroom fittings made of iron or steel
Tram and railway tracks
Knitting needles
Containers for compressed gas
The following steel and iron products attract 12% GST:
Tables, kitchen interiors, and other home items made of iron or steel
School stationery items like geometry and pencil boxes, sharpeners
Stainless steel cookers, spoons, pans, and other utensils
Sewing needles and shoe nails
Kerosene burners and stove burners
The GST rate on TMT bars, as well as other steel and iron items such as rods, scrap, and bars, is 18%.
Yes, businesses can claim Input Tax Credit (ITC) on the GST paid for iron and steel, except for renovation or construction of immovable property. ITC can be used to offset the GST liability on sales of goods or services.
The HSN code for iron scrap is 72043000. This code must be declared on invoices and when filing GST returns.
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