GST on Telecom Services — Mobile, DTH, Internet & OTT

The GST rate on all telecom services in India is 18%, classified under SAC code 9984. This rate applies uniformly to prepaid mobile recharges, postpaid mobile bills, landline telephone bills, broadband internet plans, and all other telecommunication services provided by licensed telecom operators such as Jio, Airtel, BSNL, and Vi. When you pay a ₹239 prepaid recharge, the actual talk-time or data value you receive is ₹239 minus the GST component embedded in the plan. Telecom operators are required to display the GST breakup in bills for postpaid customers. The 18% GST on telecom services replaced the earlier 15% service tax (14% basic + 0.5% Swachh Bharat cess + 0.5% Krishi Kalyan cess) that was levied before the GST era (pre-July 2017). The pre-GST effective rate was approximately 15%, so there was a slight increase in tax burden on telecom services when GST was introduced. For business customers, the GST paid on mobile or landline bills qualifies as input tax credit (ITC) under CGST Act, subject to the condition that the service is used for business purposes and not for personal use of employees.

Yes, GST at 18% applies to DTH (Direct-to-Home) recharge, cable TV subscription, and OTT (Over-the-Top) streaming subscriptions such as Netflix, Amazon Prime Video, Disney+ Hotstar, SonyLIV, ZEE5, and similar platforms. DTH recharge: 18% GST applies on the subscription amount paid to DTH operators like Tata Sky (Tata Play), Dish TV, Airtel Digital TV, and Sun Direct. The GST is generally embedded in the plan price. Cable TV: Monthly cable TV subscriptions are also subject to 18% GST. Cable operators who are registered under GST must collect and deposit GST. OTT subscriptions: Subscription fees paid to OTT platforms for streaming content are treated as "Electronic or Online Supply of Services" under GST. Since these are digital services, 18% GST applies. The GST is included in the subscription price you pay — for example, if Netflix charges ₹649/month, the GST component at 18% is approximately ₹99, and the base price is ₹550. For business subscribers, OTT subscriptions claimed as business expenses can qualify for ITC, though this is subject to the nature of business and AO scrutiny. Personal OTT subscriptions do not qualify for ITC.

Yes, GST at 18% applies to SIM card issuance, activation charges, and both domestic and international roaming charges. Here is the detailed breakdown: SIM Card: The cost of a SIM card itself attracts 18% GST. Whether it is a new SIM, replacement SIM, or eSIM activation, the charge is taxable at 18%. Activation/Connection Charges: One-time connection activation or porting charges levied by telecom operators are subject to 18% GST. These charges are considered part of the telecom service supply. Domestic Roaming: When you use your mobile number while travelling to another circle/state within India, the roaming charges on calls, SMS, and data are taxable at 18% GST. The place of supply for domestic roaming is the location of the supplier (telecom operator), so the GST collected goes to the operator's registered state. International Roaming: International roaming packs and charges are also taxable at 18% GST in India, collected by the domestic telecom operator. The GST is applicable on the amount charged by the Indian operator to the subscriber for enabling international roaming, not on the amounts settled between international carriers. Value Added Services (VAS) such as caller tunes, premium SMS, and subscription packs are also subject to 18% GST as they form part of telecom services.

Yes, businesses registered under GST can claim Input Tax Credit (ITC) on telecom bills, subject to important conditions under Section 16 and Section 17 of the CGST Act, 2017. Eligible ITC on telecom: (1) Mobile phone bills used for business calls, client communication, and official purposes — ITC is available on the GST portion of the bill. (2) Broadband and internet leased lines used for business operations — full ITC is claimable. (3) Landline telephone services for the office — ITC is available. (4) Network equipment, routers, and servers procured by the business for telecom infrastructure — ITC on GST paid is claimable. Conditions for ITC: The service must be used in the course or furtherance of business. The recipient must possess a valid tax invoice. The supplier must have filed their GSTR-1 and the invoice must appear in the recipient's GSTR-2B. The ITC must be claimed within the time limits (earlier of November 30 of next financial year or date of filing annual return). Blocked ITC: Per Section 17(5) of CGST Act, ITC is blocked on telecom services used for personal purposes of employees or for services that are not related to business. If a company pays employee mobile bills as a perquisite/reimbursement for personal use, ITC may not be available on such amounts. Partial ITC using the pro-rata method is allowed when services are used partly for business and partly for personal purposes.

No telecom services are exempt from GST in India. All categories of telecom and communication services attract 18% GST without exception. Unlike some sectors such as healthcare or education where there are meaningful GST exemptions, the telecom sector has no nil-rated or exempt categories. This means: Mobile (prepaid and postpaid): 18% GST. Internet/Broadband (home and enterprise): 18% GST. Landline services: 18% GST. DTH and cable TV: 18% GST. OTT platforms: 18% GST. Satellite communication services: 18% GST. International calls and ISD services (charged by Indian operators): 18% GST. This is a notable point for consumers and businesses alike — there are no exemptions, concessional rates, or zero-rated domestic supplies in the telecom sector. The only scenario where telecom services may not attract Indian GST is in the case of genuine exports of services where the place of supply is outside India, in which case the services may be zero-rated under Section 16 of the IGST Act. This applies, for example, to an Indian telecom company providing managed services to an overseas entity — that specific cross-border supply may be zero-rated if conditions of export of services are met. But for domestic consumers and businesses using telecom services within India, 18% GST applies uniformly.