TDS on GST on Metal Scrap

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10 Points Joined December 2020

Dear sir / Mam
My supplier remelts old iron scarp and converts it as Steel sheets to be used as a raw material for my business 

What is the correct HSN code applicable 

Scrap HSN or other HSN as the case may be??

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On 29 April 2025 at 08:21 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

To determine the correct HSN code for your supplier's product, we need to consider the process and resulting product. Your supplier remelts old iron scrap and converts it into steel sheets, which are used as raw materials for your business. HSN Code Classification Given the product is steel sheets made from remelted iron scrap, the HSN code would likely fall under Chapter 72, which deals with iron and steel products. Here are potential HSN codes: - *7204*: Ferrous waste and scrap; remelting scrap ingots of iron or steel. However, this code seems more relevant to scrap rather than finished products like steel sheets. - *7208* to *7212*: These codes cover flat-rolled products of iron or non-alloy steel, which might be more suitable for steel sheets. Specific HSN Code Without more specific details on the steel sheets' dimensions, composition, or further processing, it's challenging to pinpoint the exact HSN code. However, considering the product is a result of remelting and rolling into sheets, some potential codes could be¹ ²: - *7208*: Flat-rolled products of iron or non-alloy steel, of a widtth of 600 mm or more, hot-rolled, not clad, plated or coated. - *7209*: Flat-rolled products of iron or non-alloy steel, of a widtth of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated. GST Rate The GST rate for these products would depend on the specific HSN code. For ferrous waste and scrap, the GST rate is 18%. However, for flat-rolled products of iron or steel, the rate might differ. It's recommended to consult with a tax professional or the supplier to determine the exact HSN code and applicable GST rate for the steel sheets.

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On 29 April 2025 at 14:05


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