HSN codes
HSN codes and GST rates for engineering and fabrication
A fabricator sells goods when it supplies the steel and a service when it works on the customer's steel. These are the codes for both, and for what the shop buys.
In short
Fabricated steel structures and parts usually sit under HSN 7308, tanks under 7309 and steel racks under 9403, while work on a customer's material is a service. SimpleERP stores the code and rate on each product.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 7308 | Steel structures and parts: sheds, trusses, gates, platforms | 18% | The commonest code for a fabrication shop |
| 7309 | Tanks, vats and silos over 300 litres | 18% | Storage tanks and hoppers |
| 7310 | Steel containers up to 300 litres | 18% | Drums, boxes and small tanks |
| 7326 | Other articles of iron or steel | 18% | Brackets, clamps and fabricated parts |
| 9403 | Steel racks, cupboards and workstations | 18% | Furniture rather than structures |
| 8428 | Conveyors and material handling equipment | 18% | Built-to-order conveyors |
| 8479 | Special purpose machines | 18% | Machines not covered by a more specific heading |
| 8466 | Jigs, fixtures and parts for machine tools | 18% | Tooling made for customers |
| 9988 | Job work on the customer's material | check | A SAC code, not an HSN; the rate depends on the goods worked on |
| 7208 | Hot-rolled plate and coil | 18% | Main raw material |
| 7210 | Galvanised and coated sheet | 18% | Roofing and cladding |
| 7216 | Angles, channels and beams | 18% | Structural sections |
| 7306 | Steel tubes and hollow sections | 18% | Square and round pipe |
| 7318 | Bolts, nuts, screws and washers | 18% | Fasteners for every job |
| 8311 | Welding electrodes and wire | 18% | Consumables |
| 2804 | Oxygen and other industrial gases | 18% | Cutting and welding gas |
| 6804 | Grinding and cutting wheels | 18% | Consumables |
| 3208 | Paints and primers | 18% | Finishing |
| 8515 | Welding machines | 18% | Capital goods |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a fabricator use most?
Fabricated goods mostly live in chapter 73: structures and parts such as sheds, trusses, platforms and gates in 7308, tanks and silos in 7309, smaller containers in 7310 and other steel articles in 7326. Steel racks and cupboards move to 9403 as furniture, and machines or their parts go to chapter 84.
Inputs differ because the shop buys raw steel, not finished articles: plate and coil in 7208, coated sheet in 7210, angles, channels and beams in 7216, tubes in 7306, plus fasteners, electrodes, gas and paint. And when the customer sends the steel and you only cut, weld or machine it, you are selling fabrication services or job work under a SAC code, not goods.
How to check a rate before billing
Most steel goods share a rate, so the real question for a fabricator is what the job is. Settle these before you bill.
- Whose steel: if you buy the steel and sell the finished article, it is a sale of goods under its HSN; if the customer supplies the steel, it is job work under a SAC code.
- Structure, tank or furniture: a shed is 7308, a tank 7309, a rack 9403; the description on the drawing decides the heading.
- Work fixed to a building can be a works contract rather than a sale, which changes the code and the rate.
- Search the code in the CBIC tariff or the GST portal's HSN search, and ask your CA when a job could fall under two headings.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A fabrication bill can carry a structure, a few machined parts and a job work charge. SimpleERP keeps each line's code and rate and totals them by code.
- HSN or SAC on every product and every invoice line, so 7308 for the shed and a SAC code for the job work sit on one bill.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. See HSN codes on invoices and GSTR-1 table 12.
- Change the line description, keep the code: a one-off structure can reuse a 7308 product with the job's own description.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for fabricators
Steel, consumables and machines come in on supplier bills, and the codes on those bills are what your GSTR-2B lists.
- Plate, sections and tubes arrive under 7208, 7216 and 7306; fasteners and electrodes under 7318 and 8311.
- Same rate in and out: steel and fabricated goods usually both carry 18%, so the credit is used up month by month.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV so your CA can match it against GSTR-2B.
- Job work changes the picture: on the customer's steel you claim credit only on your own consumables and services.
FAQ
Questions, answered
How many digits of HSN must a fabricator print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 7308. Above ₹5 crore you show six digits on every invoice, such as 730890 for other structures. More digits are always allowed.
What is the GST rate on steel structures?
Fabricated steel structures and parts under HSN 7308 have usually been taxed at 18%, like most steel articles. Work on a customer's steel is a service at its own rate, and work fixed to a building may be a works contract. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on steel plate for a fabricator?
Generally yes. Plate, sections and tubes bought to make goods for sale qualify for input tax credit when the supplier's bill appears in GSTR-2B and the other conditions are met. With steel and finished structures usually at the same rate, the credit is normally used up.
Where do I set HSN in SimpleERP?
Open the product or service, type the HSN or SAC code and pick the GST rate. Every invoice line then carries both, and the HSN summary report groups sales by code. For a full catalogue, fill the HSN column in the product CSV import.
Related
Keep reading
GST billing for fabricators
Structural steel billed per kg from the weighbridge slip, tanks and frames per piece, and a shed order invoiced lot by lot.
Read moreEngineering and fabrication
Quotations to invoices, BOMs and work orders per job, and steel stock in kg and metres.
Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
Read more
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