GST ON STEEL: -

18% of GST rate for Steel in India.

Under chapter 72 of HSN code for steel products is costed at 18%. The GST rate for all the iron and steel products have decided on 18^th May 2017 in the GST Council Meeting.

The complete list of steel products is: -

• Ferroalloys
• Ferrous waste and scrap; remelting scrap ingots of iron or steel.
• Non-alloy steel in ingots or other primary forms (excluding iron of heading 7203 of HSN Code).
• Semifinished products of iron or non-alloy steel.
• Flat rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated.
• Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel.
• Wire of stainless steel.
• Other bars and rods of stainless steel; angles, shapes and sections of stainless steel.
• Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel.
• Angles, shapes and sections of iron or non-alloy steel.

India as a Steel Producing Country:

India is considered as the second largest production of steel in this entire world.With an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output. The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

The annual production of steel is anticipated to exceed 300 million tonnes by 2030-31. By 2030-31. It has been predicted that crude steel production to reach 255 million tonnes at 85% capacity utilisation achieving 230 million tonnes of finished steel production. With net exports of 24 million tonnes, consumption is expected to reach 206 million tonnes by the years 2030–1931. As a result, it is anticipated that per-person steel consumption will grow to 160 kg.

Importance of HSN code 

The full form of HSN is Harmonised System of Nomenclature code. This 6-digit code classifies various products. Manufacturers and suppliers indicate HSN code on their tax invoices and exporters and importers mention these codes in their import and export documents.

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HSN classification is used for tax purposes to identify the rate of tax applicable to a specific product. This makes GST filing easy for businesses as a code for products eliminates the need of entering details of the products.

Businesses with a turnover of less than ₹1.5 Crore do not need to adopt HSN codes for their commodities. Companies with turnover between ₹1.5 crore and ₹5 Crore use two-digit HSN codes for their commodities.

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