Nut Bolt HSN Code: GST Rate and Usage in Engineering Goods Imagine how the massive bridge or a train moving on the bridge, or even the chair you are sitting on inside the train that is moving on the bridge are held together with the same small metallic thing. More often than not, it humbles us. In the terms of engineering, these are known as “fasteners,” and they are small heroes that hold together our physical world, quite literally. But if you are a hardware store owner, a contractor, or a small engineer firm, nuts are not something foreign to you: they are almost always present by your side. And it is important that you know how they are taxed. In the Indian GST system, a small mistake in the Nut Bolt HSN Code can lead to huge economic blunders. In this article, we will be learning about the important bits of taxation and how the HSN codes are classified, along with the GST rates.
HSN Code 7318, What Is It? In the world of GST, almost all steel and iron fasteners fall under Chapter 73, which is actually named as “Articles of Iron or Steel”. Specifically, the identity of a nut and bolt is found under HSN Code 7318.
What does HSN 7318 Cover? This code is quite broad. It does not just cover the standard nut and bolt you usually see around laying idle in a toolkit. These cover vast things. They also cover a wide family of “threaded” and “non threaded” fasteners. These means:
Threaded Articles: Bolts, machine screws, coach screws , nuts, threaded hooks.
Non-Threaded Articles: Rivets, cotters, cotter-pins, and washers.
By grouping both of these things under one code, the government makes it easy for businesses to categorise thousands of different sizes and shapes of fasteners under a single tax heading.
The GST Rate for Nuts and Bolts As we enter 2026, the GST Rate for nuts, bots and other thighs has remained steady. Because these are industrial goods used in construction and manufacturing, they fall into —
HSN Code Items GST Rate 7318 "Screws Bolts Nuts Coach Screws Screw Hooks Rivets Cotters Cotter-pins Washers" 18%
Now, you must be thinking, why 18 ? This is because nuts and bolts are considered as something known to be “intermediate goods.” These are generally the type of goods that are used generally to build other things. The 18% rate is the standard for most metal things in India. Learn about GST rates in India.
Remember that while 18% seem a bit high for a tiny screw, you can always claim all of it back as Input Tax Credit (ITC) . But, this is only possible if you are using these parts to manufacture larger products or complete a construction project, only then.
Usage in Engineering Goods In engineering, a nut and bolt are never just “a” nut or “a” bolt. They are specified based on what Grade they are of or what their materials are, like if it is made up of Stainless Steel or Galvanised Iron.
Structural Engineering: In massive steel structures, high-tensile bolts are used. These are designed to withstand incredible pressure and weather conditions. From a perspective of billing things, these things are still filed under HSN 7318 @18%, even if they cost hundreds of rupees/piece.
Automotive and Machinery: Every car uses thousands of fasteners. For automotive manufactures, managing the Nut Bolt HSN Code is a massive task because they buy them in millions. They rely on the 18% ITC to keep their production costs down.
Aerospace and Specialised Goods: If the nuts and bolts are made of specialised materials like Titanium or used in aircraft, they might move to different HSN Chapters (like Chapter 88). However, for 99% of general engineering work, 7318 is your go-to number.
Goods vs Works Contract What becomes increasingly confusing is whether the bill for the nuts and bolts are for supply as goods or part of the installation.
When Supply Only: You are just selling a box of 1,000 bolts to someone and the bill is the sale of a good under GSN 7813 at 18% GST.
Installation Work : Say you are hired as an engineer for building a shed and you provide the nuts and bolts as a part of parts that are required for completion of the job. This is known as a “Works Contract.” Here, the bill should be the entire service, labour + materials, and then that should be taxed at 18% under something known as a Service Accounting Code or SAC.
Learn the difference between HSN vs SAC in GST .
Tips for Businesses If you are a small business owner of a small hardware store or a small engineering firm, tracking thousands of small parts, and their taxes are a nightmare — this is where Swipe makes your life super duper easy!
With Swipe, you do not even have to memorise HSN Codes,
You can create a “Product Library” for your different sizes of nuts and bolts in Swipe.
Assign them their HSN 7318 and the 18% GST rate once.
Everytime you make a sale, say you just did yesterday, just type something like “M10BOLT,” and Swipe automatically calculates the tax and generates a professional GST optimised invoice in the wink of an eye!
At Swipe, we love our customers, and help you track your stok, so you know exactly when or even if you are running low on those small things!
Conclusion The Nut Bolt HSN Code might seem like a small detail, but rather it is known as a “fastener” that holds your tax compliance stick together. By using HSN 7318 and applying the 18% GST rate, you ensure that your engineer or trading business stays going. Whether you are building the bridge or the car or the seat in the car, screws and nuts and bolts are something that is your best friend, hence, always keep in mind their correct HSN codes as it will surely skyrocket your business in no time.
FAQs Is the GST rate different for Stainless Steel or SS vs Iron bolts? No. Whether the bolt is made up of iron or stainless steel, it is taxed under 18%. This is because it falls under the HSN 7318 and is known as a “threaded fastener.”
What if I buy nuts and bolts for a home project? You are then a customer, and as a customer you are to pay 18% GST to the shopkeeper. Since you are not a registered business, you cannot claim Input Tax Credit. It simply becomes a part of your monthly household expenses.
Do washers also come under HSN 7318? Yes, washers also fall under the HSN Code 7318. This is because they are considered non-threaded fasteners and are taxed under the 18% GST rate.
Is there a different code for “Plastic” nuts or “plastic” bolts? Actually, yes. HSN 7318 are specifically for Iron and Steel only. If you are using plastic fasteners, usually in electronics, they would fall under Chapter 39, which also carries the same 18% GST rate, just under a different code.
Why is it so important to mention the HSN Code in the invoice? For business-to-business endeavours, writing down your HSN code is very very important. It is actually a legal requirement. It allows the buyers to claim their Input Tax Credit and helps the government track the industrial sector.
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