TMT Bar HSN Code 7214 & GST Rate 2026 — Complete Guide for Builders, Contractors & Dealers
Introduction: Getting the HSN Code Right Can Save You Lakhs
For any builder, contractor, or dealer purchasing TMT bars in India, the HSN (Harmonised System of Nomenclature) code is essential. It is a financial compliance requirement that determines GST rate applicability, Input Tax Credit (ITC) eligibility, and e-way bill accuracy. A wrong HSN code on a ₹50 lakh steel invoice can trigger an ITC mismatch, a GST audit, and potential penalties.
This guide gives you the correct HSN codes for TMT bars and all associated steel products, explains the applicable GST rates as of 2026, and shows you how to calculate landed cost accurately, verified against the CBIC notification framework effective from September 2025.
TMT Bar HSN Code — The Definitive Answer
| 🔑 Key Fact The correct HSN code for TMT bars (Thermo Mechanically Treated/deformed /ribbed steel reinforcement bars) in India is 7214. The full 8-digit sub-code for standard deformed/ribbed TMT bars used in construction is 7214 20 10 (for bars with indentations, ribs, grooves, produced in rolling). GST rate: 18% (CGST 9% + SGST 9% for intra-state; IGST 18% for inter-state). |
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Complete HSN Code Reference for TMT Bars and Related Steel Products
| Product | HSN Code | Description | GST Rate |
|---|---|---|---|
| Standard TMT Bars (deformed/ribbed) | 7214 20 10 | Bars with indentations produced in rolling — primary use in RCC | 18% |
| Other TMT / deformed bars (high strength) | 7214 20 90 | Other deformed bars not covered under 72142010 | 18% |
| Plain (non-deformed) MS bars | 7214 10 00 | Forged or hot-rolled plain bars, non-deformed surface | 18% |
| Bright bars/precision steel bars | 7214 91 10 | Bright / cold-drawn bars of non-alloy steel | 18% |
| Steel wire rods (coils) | 7213 10 00 | Wire rods — hot-rolled, in coils | 18% |
| GI Wire / Binding Wire | 7217 10 10 | Galvanised iron wire for general binding use | 18% |
| Steel scrap (for EAF-based manufacturers) | 7204 49 00 | Other scrap of iron or steel | 18% |
| Steel billets (raw input) | 7207 11 10 | Semi-finished products of iron/non-alloy steel, square section <165mm | 18% |
| Structural steel (angles, channels) | 7216 10 00 | I-sections, H-sections, angles of iron/steel | 18% |
[Table 1] HSN codes and GST rates for TMT bars and related steel products — current as of September 2025 CBIC notification. Verify with your tax consultant for project-specific classification.
How to Calculate GST on TMT Bar Purchases
| 🧮 GST Calculation Example Order: 50 metric tonnes of Fe 550D TMT bars at ₹58,000 per tonne ex-factory. Base Value: 50 × ₹58,000 = ₹29,00,000 GST @ 18%: ₹29,00,000 × 18% = ₹5,22,000 Transport (5% GST on freight): Assume ₹80,000 freight → ₹4,000 GST Total Invoice Value: ₹29,00,000 + ₹5,22,000 + ₹80,000 + ₹4,000 = ₹35,06,000 ITC claimable (if GST-registered): ₹5,26,000 (bar GST + freight GST) |
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Input Tax Credit (ITC) Rules for TMT Bar Purchases
ITC on TMT bars is available to GST-registered builders, contractors, and developers, subject to conditions under Section 16 of the CGST Act:
- - Available: Construction of buildings for taxable outward supplies (commercial rental property, industrial sheds, etc.)
- - Blocked (Section 17(5)): ITC on TMT bars used in the construction of immovable property that is NOT used for taxable supplies — i.e., construction of a personal residence does NOT qualify for ITC.
- - Available for Contractors: Contractors supplying construction services (Works Contract) can claim ITC on inputs, including TMT bars, as these are used in the taxable supply of construction services.
- - Mandatory conditions: Valid tax invoice with correct HSN 7214 code, payment within 180 days, GSTR-2B reconciliation, and the supplier's GSTR-1 filed.
Binding Wire and GI Wire: Prices, HSN Codes & GST
| Product | HSN Code | GST Rate | Typical Price Range (2026) |
|---|---|---|---|
| Binding Wire (plain/black annealed) | 7217 10 10 | 18% | ₹55 – ₹70 per kg (retail TN) |
| GI Wire (galvanised binding wire) | 7217 20 10 | 18% | ₹65 – ₹80 per kg (retail TN) |
| Binding Wire per 25 kg coil | 7217 10 10 | 18% | ₹1,375 – ₹1,750 per coil |
| Typical binding wire for 1 tonne TMT | — | — | Approx. 8–12 kg of binding wire |
[Table 2] Binding wire and GI wire — HSN codes, GST rates, and indicative 2026 price ranges for Tamil Nadu market
Q: What is the HSN code for 12mm TMT bars?
A: All TMT bars, regardless of diameter, fall under the same HSN code: 7214 20 10 (for deformed/ribbed bars with indentations produced in rolling). The diameter does not create a different HSN sub-classification. The GST rate is 18% for all diameters.
Q: Can a homeowner claim ITC on TMT bars purchased for house construction?
A: No. Individual homeowners building a personal residence cannot claim ITC on TMT bars or any construction materials. ITC under Section 17(5) of the CGST Act is blocked for immovable property construction not used for taxable outward supplies. Only GST-registered contractors and businesses can claim ITC on construction inputs.
Q: What is the e-way bill threshold for TMT bar transport?
A: An e-way bill is mandatory for TMT bar consignments exceeding ₹50,000 in value (including GST) for inter-state movement, and for intra-state movement in states where the threshold applies (check Tamil Nadu GST portal for the current intra-state threshold, which has been ₹50,000 in most states). The e-way bill must show the correct HSN code 7214 and invoice value.
GST-Compliant TMT Bar Invoicing — Every Arun Plus TMT Invoice Includes Correct HSN Codes & MTCs Transparent pricing | 18% GST clearly itemised | Full compliance documentation for every order 📄 Request a Sample Invoice — arunplustmt.com/contact
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