Steel is an essential material used in various industries, including construction, automotive, and manufacturing. The Goods and Services Tax (GST) has revolutionized the way businesses operate in India. GST rates and HSN codes play a significant role in determining the tax levied on steel less than 600 mm.
GST is a comprehensive, multi-stage, and destination-based tax on goods and services, levied at every point of sale. GST replaced numerous indirect taxes, such as excise duty, service tax, and value-added tax (VAT), and simplified the taxation system in India.
HSN stands for Harmonized System of Nomenclature, a six-digit code assigned to goods for their classification and identification. The HSN code for steel less than 600 mm is 7220.
1. 18% GST on steel products, including bars, rods, and angles.
2. 5% GST on iron and steel products used in construction, such as iron bars and fittings.
3. No GST on scrap metal.
GST has had a significant impact on the steel industry in India. The introduction of GST has simplified the taxation system, reduced the tax burden on businesses, and streamlined the supply chain.
One of the main advantages of GST is the elimination of multiple taxes, such as excise duty, service tax, and VAT. This has reduced the cost of production, making Indian steel more competitive in the global market.
Moreover, GST has brought transparency in the tax structure and increased compliance among businesses. The introduction of GST has also reduced the cascading effect of taxes and eliminated the tax on tax, resulting in a reduction in the overall tax burden on consumers.
GST has revolutionized the way businesses operate in India. The GST rates and HSN codes for steel less than 600 mm play a significant role in determining the tax levied on it. The introduction of GST has reduced the tax burden on businesses, streamlined the supply chain, and made Indian steel more competitive in the global market.
GST Rates HSN Code for Other Tubes And Pipes Of Iron Or Steel
Inverted Duty Structure under GST and how to claim its Refund
Constitution of Group of Ministers (GoM) on GST System Reforms