Iron Scrap HSN Code 7204 and GST Rate
Ferrous waste and scrap: cast iron, steel and stainless scrap, turnings and remelting ingots.
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- HSN code
- 7204
- GST rate
- 18%
- Chapter
- 72: Iron and steel
- Before 22 Sep 2025
- No change
What is the HSN code for iron scrap?
Iron Scrap falls under HSN 7204, in chapter 72 (Iron and steel).
Ferrous scrap of every kind is heading 7204 and taxed at 18%. Non ferrous scrap has its own headings: copper 7404, aluminium 7602 and brass with copper. A buyer of scrap from an unregistered dealer must check whether reverse charge or TCS rules apply in that trade.
| Code | Description |
|---|---|
| 720410 | Waste and scrap of cast iron |
| 720421 | Waste and scrap of stainless steel |
| 720430 | Waste and scrap of tinned iron or steel |
| 720441 | Turnings, shavings, chips and filings |
| 720449 | Other ferrous waste and scrap (HMS) |
GST rate on iron scrap
The GST rate on iron scrap is 18%.
| GST rate | Within a state | Between states |
|---|---|---|
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
Which HSN digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 7204 |
| Above Rs 5 crore | 6 on every invoice | 720410, 720421, 720430 |
| Export or import | 8 on the shipping bill or bill of entry | From the Customs Tariff, chapter 72 |
Sample GST invoice line for iron scrap
Here is how a line for iron scrap looks on a tax invoice within one state: 10 × tonne at Rs 32,000.00 each, taxed at 18%. The figures are an example, not a market price.
| Item | HSN | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Iron Scrap | 7204 | 10 × tonne | 32,000.00 | 3,20,000.00 | 28,800.00 | 28,800.00 | 3,77,600.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 57,600.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 72 at a glance
Chapter 72 (Iron and steel) covers: Pig iron, scrap, ingots, bars, rods, sheets, coils, wire and sections of iron or steel.
Other pages in chapter 72
Related HSN codes
Products often bought, sold or invoiced together with iron scrap:
अक्सर पूछे जाने वाले सवाल
What is the HSN code for iron scrap?
Iron Scrap falls under HSN 7204: ferrous waste and scrap: cast iron, steel and stainless scrap, turnings and remelting ingots. Common 6 digit codes are 720410 for waste and scrap of cast iron and 720421 for waste and scrap of stainless steel.
What is the GST rate on iron scrap?
18%: CGST 9% plus SGST 9% on a sale within a state, or IGST 18% on a sale between states.
How many digits of the iron scrap HSN code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 7204 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 720410, on every invoice. Shipping bills and bills of entry need the full 8 digit code from the Customs Tariff.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.