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June 14, 2025

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GST Rates and HSN Code 7306 for Other Tubes, Pipes of Iron or Steel: A Detailed Guide for Businesses

If you produce, supply, or provide industrial commodities such as steel or iron pipes and tubes, you should be aware of India's Goods and Services Tax (GST). In order to get your tax ready and avoid fines, you have to be mindful of the GST rates and HSN code 7306. In this, we will make HSN code 7306 easy, the related GST rates, what you must do for compliance, and some tips that will prove useful for your business to run smoothly. Let us begin!

Know more about - GST Rate for HSN Code 3917: Tubes, Pipes, Hoses, Fittings.

What Are Other Tubes, Pipes of Iron or Steel Under HSN Code 7306?

Vacuum round steel and iron tubes and pipes are used in various industries such as infrastructure, construction, oil and gas, automobiles, etc. They are distinct from others such as seamless tubes or big welded pipes, each belonging to its own class. They all belong to the Harmonized System of Nomenclature (HSN) code under GST.

HSN code 7306 specifically covers:

1. Tubes, pipes, and hollow profiles of iron or steel: Includes welded, riveted, or similarly closed tubes and pipes, excluding seamless ones.

2. Applications: Used in plumbing, structural frameworks, pipelines, and more.

This code is included in Chapter 73 of the HSN code, dealing with articles of steel or iron. Knowledge about HSN code 7306 allows you to charge the appropriate GST rate and also abide by the tax policies. For a more detailed report about GST on industrial material, click on this GST compliance guide.

HSN Code 7306: Definition and Scope

The Harmonized System of Nomenclature (HSN) is a globally recognized system for classifying goods, used in India to streamline GST taxation. HSN code 7306 includes:

1. Welded tubes and pipes of iron or steel: Covers circular, square, or rectangular cross-sections, often used in construction or fluid transport.

2. Hollow profiles: Includes structural sections not classified under other HSN codes like 7304 or 7305.

This code provides taxation and trade parity for iron and steel tubes and pipes. Commercial entities need to place HSN code 7306 on bills and GST return to calculate correct tax. A complete list of HSN codes is available through the CBIC HSN code list on the official website of Central Board of Indirect Taxes and Customs.

GST Rates for HSN Code 7306

The GST applicable for goods under the HSN code 7306 is as high as 18%. This is uniformly applicable to all iron or steel tubes, pipes, and hollow profiles as classified under this code due to their application as industrial materials. GST rates, however, can be changed by the GST Council, and therefore, keeping up with dates is always necessary. Here's a table summarizing the GST rate for HSN code 7306:

HSN Code	Description	GST Rate
7306	Other tubes, pipes, and hollow profiles of iron or steel (e.g., welded, riveted, or similarly closed)	18%

For the latest updates on GST rates, visit the official GST portal.

Why HSN Code 7306 Matters for Your Business

Using the correct HSN code is essential for businesses dealing with iron or steel tubes and pipes. Here's why HSN code 7306 is important:

1. Correct Taxation Application: 18% GST helps you collect and remit the proper tax to prevent misbalances.

2. Simplified Filing of GST: Adding HSN code 7306 in invoices and returns (e.g., GSTR-1) simplifies the filing.

3. International Trade Compatibility: HSN codes are internationally recognizable, making international export and import of tubes and pipes possible.

4. Regulatory Compliance: Correct classification avoids audits, fines, or legal trouble.

For tools to simplify your GST invoicing and filing, explore GetSwipe's business solutions.

How GST Rates Impact Businesses Dealing with Other Tubes, Pipes of Iron or Steel

The 18% GST rate on HSN code 7306 affects businesses in the iron and steel industry in several ways:

1. Cost Impacts: The 18% increases the price of tubes and pipes to consumers, which will impact demand, especially in price-sensitive industries like construction.

2. Input Tax Credit (ITC): Businesses can set off ITC of GST on inputs like raw steel, welding material, or equipment to reduce their net tax burden.

3. Competitive Dynamics: Increased tax rates could encourage buyers to negotiate prices, impacting profitability.

Also, companies shipping tubes and pipes can avail themselves of GST exemptions since exports are zero-rated. Always confirm eligibility for exemptions with a tax expert or consult the GST portal.

GST Compliance Tips for Businesses Dealing with HSN Code 7306

Ensuring GST compliance is critical for businesses handling other tubes, pipes of iron or steel. Here are some actionable tips:

1. Include HSN Code 7306 on Invoices: Always mention the code, even if your turnover is below ₹1.5 crore (where HSN isn't mandatory).

2. Track Rate Changes: Monitor GST Council announcements for updates to the 18% rate.

3. Claim ITC: Use ITC on GST paid for inputs like steel or manufacturing equipment to lower your tax burden.

4. Use Accounting Tools: Automate GST calculations with tools like those offered by GetSwipe.

5. Stay Updated: Subscribe to notifications on the GST portal for rate changes or new exemptions.

Detailed Breakdown of HSN Code 7306 Subcategories

For businesses with turnovers exceeding ₹5 crore, using an 8-digit HSN code is mandatory. Here's a closer look at subcategories under HSN code 7306:

1. 7306 11 00: Welded pipes of stainless steel, used for oil or gas pipelines.

2. 7306 19 00: Other welded pipes of iron or steel, used for oil or gas pipelines.

3. 7306 30 00: Other welded pipes with circular cross-sections, often used in construction.

4. 7306 90 00: Other tubes, pipes, and hollow profiles of iron or steel.

Whereas smaller businesses may utilize the 4-digit code (7306), it is better to establish the 8-digit code, especially in cases of interstate transactions or audits.

Conclusion

Realizing GST rates and HSN code 7306 for other tubes, iron or steel pipes is imperative for compliance as well as cost-effectiveness. With a standard GST rate of 18%, judicious application of HSN code 7306, and knowledge of ITC advantage, you can optimize your operations and concentrate on growth. Keep yourself updated with the CBIC website and utilize tools of GetSwipe for ease in your GST process.

Practical Scenarios: Applying HSN Code 7306

Here are a few real-world examples of how HSN code 7306 and its 18% GST rate apply:

1. Construction Supplier: A company supplies welded steel pipes for a building project, charges 18% GST under HSN 7306, and claims ITC on raw steel purchases.

2. Oil Pipeline Producer: A producer creates pipes for oil pipelines, invoices under HSN 7306, and pays 18% GST, on which the customer can claim the benefit of ITC.

3. Exporter: An exporter exports steel tubes overseas, taking advantage of zero-rated GST and refunding the 18% GST on inputs.

For more examples, visit GetSwipe's resource hub.

Most Common Questions on GST Rate and HSN Code 7306

1. GST rate on tubes and pipes under HSN code 7306 is?

The overall rate is 18% on all tubes, pipes, and hollow steel or iron profiles under HSN code 7306.

2. Do I need an 8-digit HSN code?

If your turnover exceeds ₹5 crore, use an 8-digit code (e.g., 7306 11 00). Otherwise, the 4-digit HSN code 7306 is sufficient.

3. Can I claim ITC on steel pipe purchases?

Yes, if the pipes are used for taxable business activities, you can claim ITC on the 18% GST paid.

4. Is there an exemption for tubes and pipes?

Exports of tubes and pipes are zero-rated under GST, and input taxes are available through refund. See the CBIC website for further details.

5. When do GST rates change?

The GST Council reviews rates periodically. Stay informed via the GST portal.

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