GST & HSN Code 7213: Rolled , Coiled & Iron. Goods and Services Tax (GST) has simplified India's indirect system. Every product and service has an HSN code which tells their classification. This HSN code is important for both international Trade and domestic compliance. Rolled Coiled Iron is a material that is heavily used in manufacturing, construction and infrastructure projects . But businesses are confused about what the exact GST rate is , how the subclasses differ and how to maintain compliance documents. So in this article we will learn the complete breakdown of HSN code 7213.
Also learn - GST Rate & HSN Code 7214
What is HSN Code 7213? HSN Code 7213 is a classification code which is basically for rolled coiled iron or ferrous products . The full form of HSN { Harmonized System of Nomenclature} , which was developed by the World Customs Organization( WCO) to have a common identification system for goods across the world.
It's main purpose is :- 1. Assigning a unique code to each product.
2. Making the import / export process easy.
3. Simplify the taxation GST compliance.
HSN Code 7213 is specifically for those iron products:- 1. Hot rolled.
2. These are in coils form.
3. And are supplied with circular cross-section.
4. These products are mostly used in the construction industry, infrastructure projects,and heavy machinery manufacturing.
5. To put it in simple terms, if you do manufacturer trade or import/export of rolled coils of iron , then you have to apply HSN code 7213 in your GST filing.
GST Rate for Rolled Coiled & Iron. For Rolled Coiled and Iron ( HSN code 7213) , an 18% standard GST rate applies:
1. CGST ( Central GST)9%
2. SGST( State GST) 9%
If the interstate transaction is done, then apply 18% IGST.
Example:- If a manufacturer sold rolled coil for Rs 2,00,000, then applied 18% GST ( Rs 18,000) . Then total invoice value is Rs 2,18,000.
Sub - Classification Under HSN 7213 (with table). There are multiple subheadings under HSN 7213 which differ on the basis of thickness , composition and form . This table will help you. HSN Code Description Cess Effective Date GST Rate % 7213 Rods,and bars hot -allowed,in irregularly wounld coils of iron or non - alloy state 0 01/07/2017 18% 721310 With indentations , ribs ,grooves or other deformations 0 01/072017 18% 72131010 Free cutting steel with indentations, ribs , grooves 0 01/07/2017 18% 72131090 Other 0 01/07/2017 18% 721320 Other,of free-cutting steel 0 01/07/2017 18% 72132010 Electrode quality 0 01/07/2017 18% 72132020 Cold heading quality 0 01/07/2017 18% 72132090 Other 0 01/07/2017 18% 721391 Circular cross-section 14mm 0 01/07/2017 18% 72139110 Electrode quality 0 01/07/2017 18% 72139120 Cold heading quality 0 01/07/2017 18% 72139190 Other 0 01/07/2017 18% 721399 Other 0 01/07/2017 18% 72139910 Electrode quality 0 01/07/2017 18% 72139920 Cold heading quality 0 01/07/2017 18% 72139990 Other 0 01/07/2017 18%
It is clear from the table that no matter what the category is ,the GST rate is 18% uniform on all.
Government Notification & Clarification. 1. The government has issued many notification in which the GST rates for steel and iron products have been clarified.
2. Under Notification No. 1/2017-Central Tax ( Rate) , HSN 7213 haa been placed in the 18% slab.
3. Further circulars clarify that all subclasses of this HSN attract a uniform 18% rate .
This simple meaning is that businesses should not have any confusion; the same GST rate is applicable to all.
Compliance and Documentation Requirements. It is important to maintain proper compliance in the trade of rolled coiled iron:-
1 Tax invoice:- HSN code 7213 should mention.
2 E-way bill :- If transportation is more than Rs 50,000 then it is mandatory.
3 Input Tax Credit records:- Manufacturers and traders should ensure that they can claim UTC in their GST returns.
4 GST returns filing:- HSN -wise reporting is mandatory in monthly/ Quarterly returns .
Business Impact of GST on Rolled Coiled Iron. The implementation of GST has had a huge impact on the industry:
Positive Impact :- 1. Having a single tax system ended the cascading effect.
2. Efficiency has come in transportation and logistics.
3. Cost efficiency has improved due to the ITC system.
Challenges:- 1. Compliance and documentation burden has increased.
2. Small traders got confused in the initial phase regarding HSN classification.
Conclusion HSN code 7213 is an important classification used for rolled coiled iron products. Through this code , both the government and businesses get clarity on which GST rate will be applicable on which product. This is not only important for compliance but also for proper invoicing, tax filing and transparency. It's demand has been seen very high in the infrastructure, construction and machinery industries, hence understanding the HSN code is important for every trader, manufacturer and supplier. If businesses follow the correct rates and proper documents , then they will not have to face unnecessary penalties and legal issues. Using the correct HSN code makes your business smooth, compliant and growth ready.
FAQs 1. For which product is HSN code 7213 used ? Ans- This is for hot rolled and rods, wound in coils ,of iron non-alloy steel.
2. What is the GST rate on this HSN code? Ans- 18% GST uniformly (9% CGST , 9% SGST or 18% IGST).
3. What will happen if HSN is mentioned wrongly? Ans- Wrong HSN may lead to rejection of ITC and penalty may be imposed.
4. When does the E-way bill become mandatory for rolled coiled and iron? Ans- When consignment value is more than Rs 50,000.
5. Can exporters claim GST refund for HSN Code 7213 products? Ans- Yes, exporters can claim GST refund or input Tax Credit under zero-rated supply.
6. What documents are required for GST compliance in HSN Code 7213 transaction? Ans- Businesses must maintain tax invoice, E-way bill, and GST returns filings GSTR-1 , GSTR-3B for compliance.
7. Does HSN Code 7213 cover alloy steel products as well? Ans- No, HSN Code 7213 specifically applies to non-alloy steel . Alloy steel products fall under different HSN codes.