GST invoice format for a steel trader (iron and steel stockist)
A steel stockist sells coils, sheets, angles, channels, pipes and wire to fabricators and builders, all at 18% GST, so the risk lies in weight and classification rather than rate. The invoice should give grade and size, actual or theoretical weight with the method stated, heat number or mill test certificate reference, cutting and handling charges as part of value, transport details for the e-way bill, and the buyer's project or plant when steel is delivered to a site.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a steel trader invoice needs
Grade, size and thickness
IS 2062 E250 vs E350, 2 mm vs 3 mm sheet and ISMC 100 vs 125 differ in price and in what an engineer will accept. The full specification belongs on each line.
Actual vs theoretical weight
Coils are sold on weighbridge weight; structural sections are often sold on theoretical weight per metre. Stating which method was used avoids rate disputes when the buyer re-weighs.
Heat number / MTC reference
Fabricators supplying to infrastructure and OEM buyers must trace steel to the mill test certificate. Quoting heat numbers on your invoice lets them pass that traceability on.
Cutting, slitting and handling
Stockists cut sheets to size or slit coils. Including those charges as lines on the same invoice keeps them in the taxable value of the steel supplied.
Mill and brand
Primary-mill steel and secondary-producer steel sell at different prices. Naming the mill helps buyers comply with project specifications that permit only listed makes.
Delivery site and unloading
Steel is often delivered to sites by trailer. A ship-to address and unloading terms make place of supply and e-way bill details unambiguous.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Flat-rolled products of iron or non-alloy steel (7208 to 7212), bars and rods (7213 to 7215), angles and sections (7216), wire (7217), tubes and pipes (7306) and structures (7308) are all in the 18% schedule of Notification 9/2025. The 2025 rationalisation did not move them. A steel trader's HSN summary still needs separate headings, because buyers' returns and the e-way bill system report six-digit HSN for turnover above Rs 5 crore, and inspectors compare your purchase headings from mills with your sale headings.
Weight variations and price revisions
Mills issue debit or credit notes for weight differences and price changes after dispatch. When you pass those changes to your own customers, issue a GST debit note for an increase or a credit note for a decrease that refers to the original invoice. Writing a fresh invoice for the difference without linking it confuses both sides' credit.
Cutting and processing: still a supply of steel
Cutting a sheet to size or slitting a coil for a buyer from your own stock is part of supplying that steel and is taxed with it. Processing steel owned by the customer is job work, which is a service billed under its SAC with its own rate, and the goods move under a delivery challan. Keep the two models separate in the billing system.
E-way bills and the weight on the truck
Steel consignments always cross Rs 50,000. The quantity on the e-way bill should match the invoice weight; if you bill on theoretical weight, mention it so a road check comparing truck weight with the document does not treat the variation as excess goods.
Fake-invoice scrutiny in the steel trade
Iron and steel is a sector where authorities have repeatedly found invoices without movement of goods. Keep lorry receipts, weighbridge slips and delivery proof for every sale, and check that your purchase suppliers are active GST registrants who file returns, because credit can be denied if the supplier never paid the tax.
Common billing mistakes
✕Billing on theoretical weight but generating the e-way bill on weighbridge weight without explaining the method.
✕Absorbing a mill's price-increase debit note into a later sale instead of issuing a linked debit note to the buyer.
✕Billing processing of a customer's own coil as a sale of steel.
✕Buying from a trader who files nil returns and then losing the credit.
✕Describing every line as 'MS material' without grade and size, so the buyer's engineer rejects the bill and the HSN summary cannot be defended.
Steel trader GST invoice: FAQ
What is the GST rate on TMT bars and steel sheets?
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Bars and rods (7213 to 7215) and flat-rolled products (7208 to 7212) are in the 18% schedule. Pipes (7306), angles (7216) and wire (7217) are also at 18%.
Should I print heat numbers on the invoice?
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GST does not require it, but buyers supplying to government or OEM projects often need traceability to mill test certificates, so printing heat numbers saves them asking later.
Can I bill a single invoice for steel delivered in two trucks?
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Yes, if both trucks carry goods under that invoice and each has an e-way bill. Alternatively send the second part under a delivery challan referring to the invoice.
How do I bill scrap generated during cutting?
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If the offcuts stay with you and you sell them later, bill them as scrap under 7204 at the time of sale. If the customer keeps them, they are part of their purchase.
Is 2% GST TDS applicable on steel?
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The 2% TDS notified in 2024 applies to supplies of metal scrap, not to finished steel products. Government buyers may still deduct GST TDS on contracts above the general limit.