GST on mobile recharge is 18%, and for prepaid plans it is already included in the recharge amount, so a recharge priced at Rs 299 has about Rs 45.61 of GST inside it. Postpaid bills, broadband and Wi-Fi plans, landlines and DTH subscriptions are also 18% under SAC 9984.
Routers and dongles are goods under 8517 62 at 18%. This page explains the codes, how to work out the tax inside a recharge, and how businesses claim credit on phone and internet bills. Handsets themselves are covered on the mobile phones page.
Mobile recharge and internet: codes and GST rates
Item / SAC / GST- Prepaid mobile recharge18%Included in the recharge amount
- Postpaid mobile bill18%Shown on the bill
- Broadband and fibre plans18%SAC 99842
- Wi-Fi and hotspot plans18%Internet access
- Landline telephone18%SAC 99841
- DTH and cable TV subscriptions18%Broadcasting distribution
- OTT and online content subscriptions18%SAC 99843
- Wi-Fi routers and dongles18%Goods
- SIM cards sold with service18%Part of the telecom service
Quick facts
SAC heading
9984: telecommunications, broadcasting and information supplyGST rate
18% (9% CGST + 9% SGST)Prepaid
GST is inside the recharge priceCredit
Businesses can claim GST on business phone and internet billsDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveDevices
Routers and dongles 8517 62 at 18%
Mobile recharge hsn code and SAC 9984
| Service | SAC | GST |
|---|---|---|
| Mobile voice and data | 998413 or 998414 | 18% |
| Landline and fixed telephony | 998411 or 998412 | 18% |
| Broadband, fibre, Wi-Fi | 998422 | 18% |
| Internet backbone and other access | 99842 | 18% |
| DTH and cable TV distribution | 998461 or 998465 | 18% |
| Online content, streaming | 99843 | 18% |
Gst on mobile recharge: the tax inside the price
Prepaid recharge prices include GST. To find the tax in a recharge, multiply by 18 and divide by 118.
Recharge of Rs 299: taxable value Rs 299 x 100 / 118 = Rs 253.39. GST Rs 45.61 (CGST Rs 22.80 + SGST Rs 22.81, or IGST Rs 45.61 depending on the place of supply).
Recharges bought through apps, banks or wallets carry the same GST, paid by the telecom operator. Any convenience fee charged by the app is a separate service at 18%.
Gst on broadband and Wi-Fi plans
Broadband and fibre plans are internet access services at 18%. Bills show the plan price plus 18%. Installation and router rental charges on the same bill are part of the service or separate supplies at 18%. A router bought outright is 8517 62 at 18%; see computer accessories.
Telephone expenses for businesses
A registered business can claim credit of GST on business phone and internet bills, if the connection is in the business's name with its GSTIN updated with the operator. Personal phones of staff paid by the business are harder to justify as business inputs. Keep the bills in the business name and note which connections are used for work.
Mobile recharge gst rate for retailers and distributors
Recharge retailers and distributors who sell prepaid vouchers or e-recharges earn a commission or discount from the operator. The GST on the recharge is paid by the operator on the full value. The retailer's own margin is generally treated as a discount within the voucher chain, not a separate supply, but distributors who earn commission for services may need to bill GST on that commission at 18%. Check how your agreement describes the margin.
DTH and online subscriptions
DTH, cable TV and streaming subscriptions are 18%. Set top boxes sold separately are 8528 71 at 18%; see televisions.
Wi-Fi dongle hsn code
Wi-Fi dongles, data cards and mobile hotspot devices are communication apparatus under 8517 62 at 18%. They are goods, while the data plan they use is a service under 9984.
Telecom rates here are a general summary of SAC 9984 under the present notification. Place of supply rules for telecom differ between prepaid and postpaid, so check the GST portal and ask a GST practitioner or chartered accountant about business connections in several states.
Frequently asked questions
Is GST charged on mobile recharge?
Yes, 18%, and it is included in the prepaid recharge price.
What is the GST on Wi-Fi plans?
Broadband and Wi-Fi plans are taxed at 18%.
What is the 9984 hsn code?
9984 is the SAC heading for telecommunications, broadcasting and information supply services, at 18%.
How do I calculate GST in a recharge amount?
Multiply the recharge price by 18 and divide by 118.
What is the wifi dongle hsn code?
Wi-Fi dongles are 8517 62, at 18%.