HSN Code 7323: Product Classification, GST Rate & Business Filing Guide

HSN Code 7323 falls under Chapter 73 of the Harmonised System of Nomenclature (HSN), which covers articles of iron or steel. Specifically, HSN 7323 is assigned to table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel. This code excludes items such as cutlery, spoons and forks (which fall under headings 8211–8215), sanitary ware and industrial or commercial implements.

What products fall under HSN Code 7323?

The following table outlines the products covered under  HSN code 7323.

What is the current GST rate for HSN 7323 products?

Following the GST rate rationalisation approved at the 56th GST Council Meeting, effective from 22 September 2025, table, kitchen and other household articles of iron and steel, including utensils classified under HSN 7323, attract 5% GST, down from the earlier 12% rate. 

However, not all products falling under HSN 7323 qualify for the concessional rate. Items such as iron or steel wool, pot scourers, scouring or polishing pads, gloves and similar cleaning products of iron or steel continue to attract 18% GST. 

Therefore, businesses should identify the exact product classification under HSN 7323 before applying GST on invoices and GST returns, as the applicable rate depends on the goods' specific nature and use.

Step-by-step guide to filing GST for HSN Code 7323

If you deal in products classified under HSN Code 7323, here is a step-by-step guide to filing GST returns:

Step 1: Determine your filing frequency

Your filing frequency depends on your turnover:

• Monthly filers (GSTR-1): Businesses with turnover above ₹5 crore must file GSTR-1 by the 11th of the following month.
• Quarterly filers (QRMP Scheme): Businesses with turnover up to ₹5 crore can opt for the QRMP Scheme. GSTR-1 must be filed by the 13th of the month following the quarter. Monthly tax payments are still required.
• GSTR-3B: Filed monthly by businesses with turnover above ₹5 crore and quarterly (with monthly tax payments) under the QRMP Scheme.

Step 2: Log in to the GST portal

• Visit www.gst.gov.in.
• Click Login and enter your username and password.
• Enter the CAPTCHA and log in.
• Navigate to Services > Returns > Returns Dashboard.
• Select the relevant Financial Year, Quarter (if applicable), and Month.
• Click Search to view the applicable returns.

Step 3: File GSTR-1 (outward supplies)

GSTR-1 captures all sales and outward supply invoices for the return period.

a) Open GSTR-1

Click GSTR-1, then select Prepare Online, or use the offline utility for bulk uploads.

b) Fill in B2B invoices (Table 4)

For sales to registered businesses, enter:

• Customer's GSTIN
• Invoice number, date and value
• Place of supply
• Taxable value and applicable GST amount

c) Fill in B2C large invoices (Table 5)

For sales to unregistered customers whose invoice value exceeds ₹2.5 lakh, provide a state-wise breakdown.

d) Fill in B2C small invoices (Table 7)

For all other sales to unregistered customers, report the state-wise aggregate values.

e) Complete the HSN-wise summary (Table 12)

• Select HSN Code 7323 (or the relevant sub-classification).
• Enter the applicable UQC (Unit Quantity Code), such as NOS, KGS or MTR.
• Enter the total quantity supplied.
• Enter the taxable value and corresponding CGST, SGST/UTGST or IGST amounts.
• Repeat the process for B2C supplies, where applicable.

f) Complete Table 13 - Documents issued

Enter details of:

• Tax invoices
• Credit notes
• Debit notes
• Receipt vouchers

g) Preview and submit

• Review all entries carefully.
• Click Submit.
• Verify the return using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
• Save the ARN (Acknowledgement Reference Number) generated after successful filing.

Step 4: File GSTR-3B (summary return and tax payment)

GSTR-3B is used to declare tax liability and pay GST. However, GSTR-3B cannot be edited after submission. Any corrections relating to outward supplies must be made in GSTR-1 or GSTR-1A before filing GSTR-3B.

a) Access GSTR-3B

Open GSTR-3B from the Returns Dashboard. Review the system-generated details populated from GSTR-1 and GSTR-2B.

b) Complete Table 3.1 - Outward supplies

Verify or enter:

• Taxable value of HSN 7323 supplies
• Zero-rated supplies
• Nil-rated supplies
• Exempt supplies
• Applicable IGST, CGST and SGST figures

Ensure the values match those reported in GSTR-1.

c) Complete Table 4 - Eligible ITC

Claim Input Tax Credit (ITC) on eligible business purchases and expenses. Verify all credits with GSTR-2B before claiming them.

d) Calculate net tax liability

Net GST Payable = Output GST Liability - Eligible ITC

e) Pay the tax

If additional tax is payable:

• Use the Electronic Cash Ledger.
• Create a challan through Services > Payments > Create Challan.
• Make payment using net banking, NEFT, RTGS or UPI.

f) Submit GSTR-3B

• Offset liabilities using available ITC and cash balances.
• File the return using DSC or EVC.
• Save the ARN for future reference.

Step 5: Claim ITC correctly

Businesses dealing in HSN 7323 products may claim ITC on eligible business inputs, including:

• Raw materials used in manufacturing
• Packing and labelling materials
• Capital goods used for business operations
• Inward freight and logistics services received from GST-registered suppliers

ITC cannot be claimed on goods or services used for personal purposes or blocked credits under GST law. Ensure that all ITC claims are supported by valid tax invoices and are reflected in GSTR-2B.

Step 6: Reconcile and correct errors

• Reconcile GSTR-1 with GSTR-3B regularly to ensure consistency in outward supply reporting.
• Match GSTR-2B with your purchase records to identify missing or mismatched ITC.
• If an error is identified in a filed GSTR-1, report the correction in a subsequent return or through the amendment facility, where applicable.
• GSTR-3B cannot be revised after filing. Any necessary adjustments must be made in future tax periods in accordance with GST provisions.

Conclusion

Accurate product classification is only one part of GST compliance. Businesses should also establish internal controls to review product catalogues, supplier classifications and pricing structures whenever tax notifications or tariff amendments are issued. Regular audits of inventory records and invoicing practices can help identify inconsistencies before they become compliance issues. 

Using an integrated business management solution such as TallyPrime can further support efficient record-keeping, reporting and decision-making, helping businesses stay prepared for evolving GST requirements while maintaining operational accuracy.