Fabrication Work HSN/SAC Code & GST Rate – MS, Steel, Aluminium & Metal

Fabrication work HSN Code under GST can be confusing because the correct classification depends on what is being supplied, what the contract actually requires, who owns the materials, and whether the activity is job work or a works contract.

A business that fabricates and sells a finished MS structure may need an HSN classification for goods. A business that performs fabrication on goods belonging to another registered person may be providing job work, for which a SAC under Heading 9988 is relevant. A contract involving fabrication and erection of an immovable structure can require a works-contract/construction-service classification instead.

This distinction matters because the GST rate and documentation can differ.

Fabrication Work HSN Code at a Glance

CBIC specifically lists iron/steel structures under heading 7308 at 18%, and aluminium structures under heading 7610 at 18%. The official services classification lists 998871 and 998873 separately, while the GST rate schedule distinguishes qualifying job work from other manufacturing services on physical inputs owned by others. CBIC GST

Important: 998873 is a SAC (Services Accounting Code), not an HSN code. The exact HSN/SAC should be verified using the GST Portal’s current HSN/SAC search facility before issuing an invoice.

What Is Fabrication Work Under GST?

Fabrication generally involves processes such as:

• Cutting
• Bending
• Drilling
• Welding
• Grinding
• Machining
• Assembly
• Structural forming
• Surface treatment
• Finishing

Examples include fabrication of:

• MS structures
• Steel trusses
• Columns and beams
• Gates and frames
• Railings
• Platforms
• Industrial structures
• Aluminium doors and windows
• Tanks and metal components
• Custom fabricated metal products

From a GST perspective, however, the word “fabrication” alone does not determine the classification.

The same physical activity can fall into different GST classifications depending on the transaction.

For example:

Fabricate steel structure and sell it to customer → supply of goods

Fabricate customer-owned steel as job work → supply of service

Fabricate and erect a permanent steel structure as part of construction of immovable property → may be works contract/construction service

Therefore, the first step should always be to understand the contract and the actual supply

HSN vs SAC: Which One Should You Use?

What is HSN?

HSN stands for Harmonised System of Nomenclature.

It is used primarily for classification of goods.

Examples:

7308 – structures and parts of structures of iron or steel.

7610 – aluminium structures and parts of structures.

CBIC’s GST FAQ specifically states that structures of iron or steel fall under heading 7308 and aluminium structures fall under heading 7610, with GST at 18%. CBIC GST

What is SAC?

SAC means Services Accounting Code.

SAC is used for classification of services.

Fabrication performed as a service can therefore require a SAC instead of an HSN.

Examples include:

• 998871 – structural metal product, tank, reservoir and steam generator manufacturing services.
• 998873 – other fabricated metal product manufacturing and metal treatment services.
• 995455 – structural steel erection services.

These classifications come from the official Scheme of Classification of Services. Goods & Services Tax Council

MS and Steel Fabrication HSN Code

HSN 7308 for structural MS and steel goods

HSN Heading 7308 covers structures and parts of structures made of iron or steel.

The heading includes examples such as:

• Bridges and bridge sections
• Towers
• Lattice masts
• Roof structures
• Roofing frameworks
• Doors and windows and their frames
• Shutters
• Balustrades
• Pillars
• Columns
• Other structural components

CBIC’s GST rate FAQ states that iron or steel structures under heading 7308 attract 18% GST. CBIC GST

Common examples

A fabricator manufactures and supplies:

• MS shed components
• Steel trusses
• Structural columns
• Steel frames
• Steel platforms
• Structural beams
• Certain steel railings
• Structural steel assemblies

The classification may fall under 7308, provided the finished product actually meets the scope of that heading.

GST rate

18% GST is the current rate for heading 7308. CBIC GST

Do not automatically use 7308 for every metal item merely because it was fabricated. The exact product should be checked against the tariff description.

Other Iron and Steel Fabricated Products

Not every fabricated steel item is necessarily a structural item under 7308.

Some products may fall under other headings, such as 7326, depending on the nature of the article.

Heading 7326 covers other articles of iron or steel.

For example, a custom-made metal product that does not satisfy the description of a more specific heading may need to be considered under another heading such as 7326.

Therefore:

Fabrication process ≠ automatic HSN 7308.

The finished product and its tariff description determine the goods classification.

This is one reason why businesses should not simply copy the same HSN code onto every fabrication invoice.

Aluminium Fabrication HSN Code

Aluminium products are generally classified under Chapter 76.

HSN 7610

Heading 7610 covers aluminium structures and parts of structures.

This can include relevant products such as:

• Aluminium doors
• Aluminium windows
• Aluminium frames
• Aluminium structural components
• Other aluminium structures covered by the heading

CBIC’s GST FAQ specifically identifies 7610 for aluminium structures, with GST at 18%. CBIC GST

Example

An aluminium fabricator manufactures and supplies aluminium windows with frames.

The transaction is a supply of goods, so an HSN under the applicable aluminium tariff heading is required. Where the product falls under 7610, the GST rate is 18%. CBIC GST

Again, do not classify every aluminium product as 7610. Verify the actual product description.

What Is SAC 998873?

This is one of the most important sections of this article because “998873 HSN code” is a common search query, but 998873 is actually a SAC code.

SAC 998873

The official Scheme of Classification of Services describes SAC 998873 as:

Other fabricated metal product manufacturing and metal treatment services.

The explanatory notes indicate that this category includes, among other things:

• Other fabricated metal product manufacturing services not elsewhere classified
• Metal treatment services
• Metal coating services
• General machining services
• Related fabricated-metal manufacturing activities Goods & Services Tax Council

Therefore, a webpage should not describe 998873 simply as “treatment and coating of metals and machining services.” That wording misses the broader official classification.

SAC 998871 vs SAC 998873

These two codes are especially important for fabrication businesses.

SAC 998871

Structural metal product, tank, reservoir and steam generator manufacturing services

This is the more specific service classification for structural metal product manufacturing services.

For example, work involving manufacturing of structural metal products may need to be considered under 998871 where the service classification fits.

SAC 998873

Other fabricated metal product manufacturing and metal treatment services

This is broader and covers other fabricated metal manufacturing and metal-treatment activities that fall within the classification.

Quick comparison

The official classification confirms these separate descriptions. Goods & Services Tax Council

Important correction for 2026

Your old article currently describes 998872 as fabricated metal product manufacturing services.

That is incorrect.

998872 is for weapon and ammunition manufacturing services.

For ordinary metal fabrication, do not use 998872 merely because the work involves fabricated metal. Goods & Services Tax Council

GST Rate on Fabrication Work

There is no single GST rate for every transaction called “fabrication work.”

The rate depends on the classification and nature of the supply.

Fabricated steel goods

Where a finished iron/steel structure falls under HSN 7308:

GST = 18%

CBIC specifically confirms 18% for heading 7308. CBIC GST

Aluminum structures

Where the finished aluminium product falls under heading 7610:

GST = 18% CBIC GST

Job work

This is where the current article needs substantial correction.

Under the CGST Act, job work means treatment or processing undertaken on goods belonging to another registered person. CBIC GST

CBIC Circular No. 126/45/2019-GST explains the distinction within Heading 9988:

• The job-work entry covers qualifying job work.
• Other manufacturing services on physical inputs owned by persons other than registered persons fall under a separate 18% entry. CBIC GST

The current CBIC rate schedule shows the residual job-work entry under Heading 9988 at 12%, while specified exceptions can have different rates. CBIC GST

Therefore:

Do not state “all fabrication job work is 18%.”

And also do not state:

“All fabrication job work is 12%.”

The actual transaction must first be established as qualifying job work.

Fabrication Job Work on Customer-Owned Material

Suppose:

ABC Engineering Pvt. Ltd. is GST registered.

ABC sends MS plates and sections to a fabricator.

The fabricator performs:

• Cutting
• Drilling
• Welding
• Grinding
• Assembly

The goods remain the customer’s goods and the fabricator is performing treatment/processing.

This can qualify as job work under the CGST Act because the goods belong to another registered person. CBIC GST

What matters?

The contract should clearly establish:

• Who owns the material
• What processing is being performed
• Whether the principal is GST registered
• Whether the transaction satisfies the statutory definition of job work
• What service is actually being supplied

Can the job worker use its own consumables?

Yes, use of some own inputs or consumables does not automatically prevent an activity from qualifying as job work.

CBIC’s job-work clarification states that a job worker can use its own goods in providing job-work services; classification depends on the facts and circumstances. CBIC GST

For this reason, your article should not claim that “the customer must supply 100% of the material”.

That would be too rigid.

When 998873 Can Be Relevant

Suppose a customer gives the fabricator metal goods for:

• Machining
• Surface treatment
• Coating
• Fabrication of other metal products

The appropriate SAC may be 998873 when the service falls within the official description.

However, the GST rate is determined from the applicable rate entry, not merely from the six-digit code.

Example

Customer is GST registered.

Customer-owned metal is processed by the fabricator.

The activity qualifies as job work.

→ Relevant SAC may be 998873, depending on the actual service.

→ The qualifying job-work rate under Heading 9988 is 12%, subject to the applicable conditions and exceptions. CBIC GST

When 18% Can Apply to a Fabrication Service

Suppose the fabricator performs manufacturing services on physical inputs owned by a person who is not a registered person, so the transaction does not qualify as “job work” under the statutory definition.

The residual manufacturing-service entry under Heading 9988 can then become relevant.

The current CBIC rate schedule provides 18% for manufacturing services on physical inputs owned by others outside the qualifying job-work categories. CBIC GST

This is why the following two invoices cannot automatically be treated identically:

Client-owned material + qualifying job work

and

Material owned by an unregistered person + manufacturing service

The rate can differ.

Fabrication as a Works Contract

This is another major area of confusion.

A works contract under GST is not simply “any fabrication contract.”

Section 2(119) of the CGST Act defines works contract in relation to construction, fabrication, erection, installation and related activities involving immovable property, where transfer of property in goods is involved in execution of the contract. CBIC GST

Therefore, fabrication connected with an immovable property can require a different analysis.

Example: Fabricating and erecting a permanent steel shed

Suppose a contractor:

1. Purchases steel,
2. Fabricates structural members,
3. Transports them to the customer’s factory,
4. Erects and permanently fixes the structure on the property.

The transaction should not automatically be treated as ordinary fabrication-goods supply.

The contract, scope, degree of attachment, and whether the output is immovable property must be examined.

For structural steel erection, the official service classification includes:

SAC 995455 – Structural steel erection services. Goods & Services Tax Council

Goods vs Job Work vs Works Contract

This is the most useful decision framework for a fabricator.

Step 1: What are you actually supplying?

Finished fabricated product

You manufacture a product and supply it to your customer.

Example:

You buy steel, manufacture a fabricated structure and sell it.

→ Supply of goods

→ Use the appropriate HSN based on the finished product.

For a qualifying iron/steel structure, heading 7308 may apply.

Step 2: Are you processing someone else’s goods?

The customer owns the goods and sends them to you for treatment or processing.

If the statutory conditions are satisfied, particularly that the goods belong to another registered person:

→ Job work

→ Use the appropriate SAC under Heading 9988. CBIC GS

Step 3: Are you constructing or erecting an immovable property?

If the work involves fabrication, erection or construction of an immovable property with transfer of goods during execution:

→ Consider works-contract treatment

→ Determine the relevant Heading 9954/SAC based on the actual service. CBIC GST

Practical Examples

Example 1: MS structure supplied as finished goods

A fabricator manufactures an MS structural platform in its workshop.

It buys the steel itself and sells the completed platform to the customer.

Treatment

Supply of goods.

Possible classification

HSN 7308, where the finished product falls within the heading.

GST

18%. CBIC GS

Example 2: Job work on customer’s MS material

A GST-registered manufacturer sends MS sheets to a fabricator.

The fabricator cuts and welds them according to the customer’s drawings.

Treatment

Potentially qualifying job work.

Possible service classification

SAC 998871 where the service is structural-metal-product manufacturing.

GST

12% generally under the residual job-work entry, subject to the applicable conditions and exceptions. Goods & Services Tax Council

Example 3: Metal treatment

A registered customer sends metal components for a treatment/coating process.

The activity falls within the scope of metal treatment services.

Possible classification

SAC 998873

GST

If the statutory requirements for job work are satisfied, the applicable job-work rate can be 12%.

If it is not qualifying job work, the rate can instead fall under the relevant non-job-work manufacturing-service entry at 18%. Goods & Services Tax Council

Example 4: Aluminum windows supplied to customer

A fabricator purchases aluminium sections, manufactures windows and supplies the completed windows.

Treatment

Supply of goods.

Possible HSN

7610, where the product falls under the heading.

GST

18%. CBIC GST

Example 5: Structural steel erection

A contractor provides structural steel erection services at a construction site.

Possible SAC

995455 – Structural steel erection services. Goods & Services Tax Council

The GST rate depends on the applicable construction-service entry and the nature of the contract; ordinary construction services under Heading 9954 are generally taxed at 18%, subject to specified concessional categories. CBIC GST

GST Invoice and HSN/SAC Reporting

Once the correct classification is determined, the next step is accurate invoicing.

A fabrication invoice should be consistent with the actual supply.

Depending on the transaction, the invoice may need details such as:

• Invoice number
• Invoice date
• Supplier GSTIN
• Customer GSTIN
• Description of goods or services
• HSN/SAC
• Taxable value
• GST rate
• CGST/SGST or IGST
• Total invoice value
• Other applicable particulars

Do not choose an HSN/SAC simply because another fabricator is using it.

HSN/SAC Reporting in GSTR-1

GSTN has implemented HSN reporting requirements based on aggregate annual turnover.

Its current advisory states that:

• Taxpayers with AATO up to ₹5 crore report a minimum 4-digit HSN/SAC.
• Taxpayers with AATO above ₹5 crore report a minimum 6-digit HSN/SAC.

GSTN’s Phase-3 implementation from the May 2025 return period also introduced HSN drop-down selection and validation changes. GST Tutorials

This means your old article should not tell readers:

“Above ₹5 crore, 8-digit HSN is mandatory on every B2B invoice.”

That is too broad and should be removed.

Use the current GST Portal requirements and verify the exact reporting requirement applicable to the taxpayer and supply.

GSTN also provides a current Search HSN/SAC facility for taxpayers to identify relevant classifications. GST Tutorials

Input Tax Credit for Fabrication Businesses

Fabrication businesses can have substantial GST input costs.

Typical purchases include:

• Steel
• MS sections
• Aluminium
• Welding consumables
• Electrodes
• Paint
• Gas
• Machinery
• Cutting tools
• Electricity-related inputs where eligible
• Job-work inputs
• Other business services

A registered business may be able to claim eligible input tax credit subject to the conditions and restrictions under GST law.

Before claiming ITC, reconcile:

Purchase Register → Tax Invoice → GST Portal Data → GSTR-2B → Books

This is especially important where fabrication businesses purchase large quantities of steel and other materials.

For more detailed ITC rules, link this section to your existing:

[Crucial Rules of Input Tax Credit (ITC)]

ITC and Works Contracts

Works-contract transactions require additional care because GST law contains specific restrictions concerning certain construction-related inputs and services.

Therefore, do not assume:

“GST paid on every steel purchase is automatically recoverable.”

The ITC treatment depends on:

• Nature of outward supply
• Whether it is a works contract
• Whether the inputs/services are used in business
• Whether any blocked-credit provision applies
• Whether the supplier and recipient satisfy the relevant conditions

This is another reason to distinguish ordinary goods supply, job work, and works contract instead of treating all fabrication activities as identical.

E-Invoicing for Fabrication Businesses in 2026

E-invoicing is another area where fabricators need to keep their accounting systems updated.

The current e-invoice framework applies to taxpayers meeting the applicable turnover and other conditions; the e-invoice system states that taxpayers with aggregate annual turnover of ₹5 crore and above fall within the e-invoicing mandate, subject to applicable exclusions. Einvoice 6

There is an additional time-control rule for larger businesses.

From 1 April 2025, taxpayers with AATO of ₹10 crore or more must report specified e-invoices within 30 days from the invoice date. The restriction covers invoices, credit notes and debit notes. Einvoice 6

For a fabrication business, the accounting workflow should therefore connect:

Sales Invoice → HSN/SAC → E-Invoice/IRN where applicable → GSTR-1 → Books

Any mismatch between these systems can create unnecessary reconciliation problems.

Common GST Mistakes Made by Fabricators

Mistake 1: Calling SAC 998873 an HSN code

Wrong: 998873 HSN code

Correct: SAC 998873

You can still use the phrase “998873 HSN code” in the article as a search-query variation, but explain clearly that 998873 is a SAC.

Mistake 2: Using 998872 for ordinary metal fabrication

This should be removed.

998872 is for weapon and ammunition manufacturing services. Goods & Services Tax Council

Mistake 3: Saying all job work is 18%

This is outdated.

Qualifying job work under Heading 9988 has a 12% residual rate, subject to applicable exceptions. CBIC GST

Mistake 4: Saying all job work is 12%

This is also too broad.

The statutory definition of job work matters, and non-job-work manufacturing services can fall under the 18% entry. CBIC GST

Mistake 5: Using 7308 for every fabricated steel item

7308 is for specific structures and parts of structures.

Other fabricated articles can require different HSN classification.

Mistake 6: Using 995432 for structural steel erection

This should be corrected.

995432 = Site formation and clearance services.

995455 = Structural steel erection services. Goods & Services Tax Council

Mistake 7: Treating every site fabrication contract as goods supply

A fabrication-and-erection contract involving immovable property may need works-contract analysis.

Mistake 8: Using the wrong HSN/SAC digit requirement

Your current article says 8-digit HSN is required above ₹5 crore.

The current GSTN reporting advisory uses 4 digits up to ₹5 crore and 6 digits above ₹5 crore for the relevant GSTR-1 HSN/SAC reporting requirement. GST Tutorials

Mistake 9: Using one code for every customer

Two contracts involving “fabrication” can have different classifications.

Review the actual contract.

Mistake 10: Failing to document classification

Keep supporting documents such as:

• Purchase invoices
• Work orders
• Contracts
• Drawings
• Delivery challans
• Material ownership records
• Job-work documentation
• E-invoice/IRN details
• GST return data

This creates a defensible audit trail.

Fabrication GST Compliance Checklist 2026

Use this checklist before issuing an invoice.

Step 1 — Identify the supply

Ask:

Am I selling a finished product?

or

Am I providing fabrication/processing as a service?

or

Am I performing a construction/erection contract?

Step 2 — Identify material ownership

For a service transaction, determine:

Who owns the material?

Also determine whether the owner is a GST-registered person, because that is relevant to the statutory definition of job work. CBIC GST

Step 3 — Check the exact HSN/SAC

Use the GST Portal’s current HSN/SAC search rather than copying a code from another invoice. GSTN’s current search tool allows users to search descriptions and view related HSN codes. GST Tutorials

Step 4 — Check the GST rate

Do not assume:

Fabrication = 18%

Check whether the transaction is:

• Goods
• Qualifying job work
• Non-job-work manufacturing service
• Works contract
• Other specialised service

Step 5 — Check ITC

Review eligibility and restrictions for both:

Supplier

and

Recipient

Step 6 — Check e-invoicing

Determine whether e-invoicing applies.

For AATO ₹10 crore or more, check the 30-day reporting restriction. Einvoice 6

Step 7 — Reconcile GST returns

After invoicing:

Invoice → Books → E-Invoice → GSTR-1 → GSTR-3B

Make sure the values and HSN/SAC are consistent.

Quick Reference Table for Fabrication Businesses

The table is a classification guide, not a substitute for product-specific classification. Exact 6/8-digit HSN selection should be checked against the GST tariff and current GST Portal search facility.

Frequently Asked Questions

Conclusion

Fabrication work under GST cannot be classified correctly by looking only at the word “fabrication.”

The correct approach is:

Identify the supply → Determine goods or service → Check material ownership → Check job-work status → Check works-contract possibility → Select HSN/SAC → Verify GST rate → Check invoice/e-invoice requirements → Reconcile with GST returns

For finished iron/steel structural goods, HSN 7308 and 18% GST are central reference points. For aluminium structures, HSN 7610 and 18% GST are relevant. For services, 998871 and 998873 are important SAC classifications, but the applicable rate depends on the nature of the service and whether the transaction qualifies as job work. CBIC GST

The most important 2026 lesson is this:

Do not choose an HSN/SAC only because another fabricator is using it. Classify the actual product or service and verify the current GST rate and reporting requirements before issuing the invoice.

The GST Portal’s HSN/SAC search should be used to confirm the current classification, particularly where a business handles multiple fabrication products or service arrangements.

OFFICIAL SOURCES / REFERENCES

Add a “Official Sources” section at the bottom of the WordPress article and hyperlink the source names.

CBIC GST Goods and Services Rates — for current GST rates on goods and services. CBIC GST

CBIC – CGST Act, Section 2(68) — definition of job work. CBIC GST

CBIC Circular No. 126/45/2019-GST — distinction between qualifying job work and other manufacturing services under Heading 9988. CBIC GST

GST Council – Scheme of Classification of Services — 998871, 998872, 998873 and 995455 classifications. Goods & Services Tax Council

GSTN – HSN Reporting Advisory — current minimum HSN/SAC digit requirements in GSTR-1. GST Tutorials

GSTN – Search HSN Code Functionality — current HSN/SAC search facility. GST Tutorials

IRP – 30-Day E-Invoice Reporting Restriction — applicable to taxpayers with AATO ₹10 crore and above.

• Author
• Recent Posts

Yuvraj Vihol

Yuvraj Vihol is a professional accountant based in Ahmedabad, Gujarat, India, with more than 2 years ofhands-on experience in GST compliance, ITR filing,TDS/TCS management, and business accounting.

He founded Finance and Tax Guide to simplify complex tax and accounting topics for Indian small businesses, entrepreneurs, and individual taxpayers.

His expertise includes:
• GST Registration and Return Filing
• Income Tax Return (ITR) Filing
• TDS and TCS Compliance
• Business Bookkeeping
• Financial Accounting
• Tax Planning for Small Businesses

Every article published on Finance and Tax Guideis based on practical accounting experience and current Indian tax laws to provide accurate,
easy-to-understand financial guidance.

Latest posts by Yuvraj Vihol (see all)

• 7 Essential Things to Know About What Is a Depreciation Schedule in 2026 - June 13, 2026
• Section 102 Companies Act 2013 Explained: What Every Indian Business Owner Must Know - June 8, 2026
• 10 Top Semiconductor Stocks to Buy in India 2026 - June 7, 2026