Kumar IronUpdated
In this guide
The rate and the codes
TMT bars attract 18 percent GST at the time of writing. GST rates can change through government notifications, so confirm the rate printed on your invoice.
The HSN code tells the tax system what you bought. Straight TMT bars and rods generally fall under heading 7214 (bars and rods of iron or non-alloy steel). Bars supplied in coils, common for thin sizes, fall under 7213. Mild steel angles, channels and sections are under 7216.
| Item | HSN heading |
|---|---|
| TMT bars and rods, straight lengths | 7214 |
| Bars and rods in coils | 7213 |
| MS angles, channels, I-beams | 7216 |
| Binding wire (iron or steel wire) | 7217 |
How GST adds up on a steel bill
GST is charged on the taxable value, which is the steel price plus any freight or loading billed by the seller. Example only: 1000 kg at Rs 60 per kg is Rs 60,000. 18 percent GST is Rs 10,800, so the bill is Rs 70,800.
For a sale within Uttar Pradesh the 18 percent shows as 9 percent CGST plus 9 percent SGST. For a sale from another state it shows as 18 percent IGST. The total is the same.
Input tax credit: who can claim it
A GST-registered business can usually claim credit for GST paid on steel used in its taxable business. A homeowner building their own house cannot claim it, so for them GST is a real cost. Builders and contractors should check with their tax adviser, because credit on materials used for immovable property has restrictions.
What to check on your invoice
- Seller's GSTIN and your name, plus your GSTIN if you have one.
- HSN code and description, with size and grade, for example 12 mm Fe500D.
- Quantity in kg and rate per kg.
- Tax split: CGST and SGST, or IGST.
- Brand name, which should match the bars and the mill test certificate.
A proper GST invoice also helps if you ever need to raise a quality complaint with the brand.
Frequently asked questions
- What is the GST on TMT bars?
- 18 percent at the time of writing. Check the invoice, since rates are set by notification.
- What is the HSN code for TMT bars?
- Generally 7214 for straight bars and rods, and 7213 for bars in coils.
- Is a quote without a bill cheaper?
- It may look cheaper, but you lose the record of brand, grade and quantity, and any recourse if the steel is poor.