HSN Code 7326: Product Classification, GST Rate & Business Filing Guide

7326 HSN Code covers “other articles of iron or steel” under Chapter 73 of the Harmonised System of Nomenclature (HSN), and businesses use it when a steel product does not fit a more specific tariff heading. Correct classification under HSN 7326 matters because it directly affects the applicable Goods and Services Tax (GST) rate, invoice accuracy and return filing compliance.

This heading includes a broad range of finished and semi-finished products such as forged or stamped articles, steel wire products, belt lacing, drain covers, enamelled ironware, grinding media, stainless steel articles, clad metal products and ship parts. If a product is not covered under specific headings such as 7318 for screws, 7320 for springs, or 7323 for household articles, it is often classified under 7326. Businesses in fabrication, engineering, automotive, marine and industrial supply sectors commonly use this classification.

What is Input Tax Credit (ITC) on HSN 8479 machinery

Here is a quick breakdown of how products are classified under HSN 7326:

What are the GST rates applicable to HSN Code 7326

Goods under 7326 HSN Code no longer uniformly attract 12% or 18% GST. While many standard iron and steel articles under this heading continue to attract 18% GST, certain notified items may attract lower rates depending on the exact tariff item and product description.

For example, art ware of iron under HSN 73269099 was revised from 12% to 5% with effect from 22 September 2025 under the updated GST rate notification. There is generally no compensation cess on goods classified under heading 7326.

Businesses should verify the exact HSN classification and the latest Central Board of Indirect Taxes and Customs (CBIC) rate schedule before invoicing, as the applicable rate may now depend on the specific product rather than the heading as a whole.

What are the common classification errors to avoid

Several iron and steel products are often misclassified under HSN 7326 even though they fall under more specific headings. Common examples include:

• Screws, bolts and nuts fall under HSN 7318, not 7326.
• Springs are classified under HSN 7320.
• Iron chains fall under HSN 7315.
• Sanitary ware, including bath fittings and drain assemblies, falls under HSN 7324.
• Household articles of iron or steel are covered under HSN 7323.
• Cast articles that are not forged or machined fall under HSN 7325.

What should be included in a business filing checklist for HSN 7326

If your business deals in goods under this heading, keep this checklist in place:

• Revise product masters in your billing or Enterprise Resource Planning (ERP) system so HSN codes auto-populate on invoices.
• Check the applicable GST rate on the Central Board of Indirect Taxes and Customs (CBIC) portal for the relevant sub-heading.
• File GSTR-1 accurately with the HSN-wise breakup in Table 12 so quantities, values and tax amounts reconcile with your invoices.
• Reconcile GSTR-2B with your purchase register to claim the correct Input Tax Credit (ITC) on inward supplies of iron and steel articles.
• Maintain clear records of the HSN classification rationale, especially for goods that could reasonably fall under more than one heading, to support your position during a GST audit.

Conclusion

Correct HSN reporting under 7326 is not only about tax accuracy; it also protects your business from notices, delayed ITC claims and customer disputes. The practical takeaway is simple: review your top-selling Stock Keeping Units (SKUs) every quarter, especially when product specifications change or new items are added, and put an internal approval process in place before assigning new HSN codes.

As product-level GST rates now vary more closely by classification, disciplined record-keeping matters as much as correct invoicing. Using reliable accounting software such as TallyPrime can help standardise records, reduce manual errors and keep filings consistent as your business grows.