Steel coil HSN Code

Understanding the Steel Coil HSN Code: A Comprehensive Guide

The world of steel coils is vast and varied, with numerous types and applications. Understanding the appropriate HSN (Harmonized System of Nomenclature) code for these products becomes crucial for businesses involved in their trade, ensuring proper classification and GST compliance. This blog dives into the intricacies of steel coil HSN codes, shedding light on their classifications and associated GST rates.

HSN Codes for Steel Coils

Steel coils primarily fall under Chapter 72 of the HSN, which broadly covers “Iron and steel.” This chapter is further subdivided to categorize specific types of steel products, including various forms of coils. The HSN system provides a globally recognized method for classifying goods, simplifying international trade and customs procedures.

Identifying Hot-Rolled Coils of Stainless Steel

Many steel coils, particularly those used as “bars and rods, hot-rolled, in irregularly wound coils, of stainless steel,” are classified under HSN code 7221. This broad category further branches into more specific descriptions based on the steel’s composition or intended use:

• 72210011: Chromium type bright bars.
• 72210012: Nickel chromium austenitic type bright bars.
• 72210019: Other bright bars.
• 72210090: Other forms of hot-rolled stainless steel bars and rods in irregular coils.

All these sub-categories under 7221 consistently attract an 18% GST rate, with a zero CESS, effective from July 1, 2017.

Understanding Flat-Rolled Products of Other Alloy Steel

Beyond stainless steel, other alloy steel coils also have specific HSN classifications. These typically fall under HSN codes 7225 and 7226, depending on their width and processing:

• 72252011: Flat-rolled products of other alloy steel, with a width of 600 mm or more, of high-speed steel, hot-rolled, and in coils.
• 72252021: Flat-rolled products of other alloy steel, with a width of 600 mm or more, of high-speed steel, cold-rolled, and in coils.
• 72253010: Flat-rolled products of other alloy steel, with a width of 600 mm or more, other, not further worked than hot-rolled, in coils, specifically of spring steel quality.
• 72262011: Flat-rolled products of other alloy steel, with a width of less than 600 mm, of high-speed steel, hot-rolled, and in coils.
• 72262021: Flat-rolled products of other alloy steel, with a width of less than 600 mm, of high-speed steel, cold-rolled, and in coils.

Similar to stainless steel coils, these alloy steel coil classifications also have a consistent GST rate of 18% with zero CESS, effective from July 1, 2017.

Classifying Bars and Rods of Other Alloy Steel

The HSN code 7227 specifically addresses “Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel.” This category further differentiates based on the specific alloy or quality:

• 72271000: Of high-speed steel.
• 72272000: Of silico-manganese steel.
• 72279010: Valve spring steel quality.
• 72279040: Cold heading quality.
• 72279050: Lead-free cutting quality.
• 72279060: Sulphur free cutting quality.

All these sub-categories within HSN 7227 also carry an 18% GST rate, with zero CESS, applicable since July 1, 2017.

Considering Other Steel Articles in Coil Form

While the majority of steel coils fall under Chapter 72, certain specialized steel articles in coil form may be found in other chapters. For instance, “Springs And Leaves For Springs, Of Iron Or Steel – Other : Coil Spring For Railways, Tramways” is categorized under HSN 73209010. This specific item also falls under an 18% GST rate, effective from July 1, 2017.

Navigating the correct HSN code is paramount for accurate GST calculations and seamless business operations in the steel industry. Always refer to the most updated official GST and HSN classification guides for precise information relevant to your specific products.