All telecommunication services in India are taxed at 18% GST under SAC 9984 — mobile prepaid/postpaid, broadband, internet, DTH, cable, landline and leased lines. On a ₹100 recharge, ₹18 is GST, so your usable talk-time/data is on the net-of-GST value. A registered business can claim Input Tax Credit on telecom bills used for official purposes. There are no exempt or concessional telecom categories.
GST Rate on Telecom Services — Decision Table
Every common telecom service sits in a single slab. The rate is the same; only ITC eligibility depends on whether the use is business or personal.
| Service | SAC | GST Rate | ITC for Business |
|---|---|---|---|
| Mobile prepaid recharge | 9984 | 18% | Yes if business use |
| Mobile postpaid bill | 9984 | 18% | Yes if business use |
| Broadband / home internet | 9984 | 18% | Yes if business use |
| Enterprise leased line | 9984 | 18% | Yes |
| Landline telephone service | 9984 | 18% | Yes office use |
| DTH recharge / cable TV | 9984 | 18% | Personal |
| SIM card / activation charges | 9984 | 18% | Yes if business use |
| Roaming (domestic / international) | 9984 | 18% | Yes if business use |
SAC 9984 = telecommunication, broadcasting & information-supply services. The GST 2.0 rationalisation (effective 22 September 2025) did not change telecom rates. Confirm on the official GST portal before invoicing.
How GST Splits a ₹100 Recharge
Telecom plans are GST-inclusive — the price you pay already contains 18% GST. So a ₹100 recharge is not ₹100 of talk-time plus tax; the ₹100 is split into a base value and the GST on it.
18% ₹100 recharge (GST-inclusive)
18% ₹100 base + GST (billed model)
On a prepaid recharge the price is inclusive, so the GST is reverse-calculated from the amount (₹100 ÷ 1.18 ≈ ₹84.75 base + ₹15.25 GST). On a postpaid or enterprise bill the base is shown first and 18% is added on top. Either way the tax rate is the same 18%.
Prepaid recharge amounts are GST-inclusive, so a ₹100 recharge carries ~₹15.25 GST inside it. Postpaid and business bills show the base and add 18% on top, so a ₹100 base becomes a ₹118 bill. The rate never changes — only whether the tax is inside or added on the amount.
Need to reverse-calculate GST inside any recharge or bill?
Use the GST Calculator →ITC on Telecom Bills — When Can You Claim?
A GST-registered business can claim Input Tax Credit on the 18% GST charged on telecom services used in the course of business — under Section 16 of the CGST Act — subject to a valid tax invoice in the business name and the invoice appearing in your GSTR-2B.
Eligible — official business use
- Company mobile & postpaid bills for staff on duty
- Office broadband & enterprise leased lines
- Landline / EPABX for the business
- SIM, activation & roaming for business travel
- Invoice in the firm's name with its GSTIN
Not eligible — personal use
- Bills in an employee's personal name
- DTH / cable / OTT for home entertainment
- Recharges reimbursed for personal use
- Section 17(5) — non-business consumption
- Use the pro-rata split for mixed use
Where a connection is used partly for business and partly for personal use, claim ITC only on the business proportion. Keep the telecom invoice in the business name with its GSTIN so the credit reflects in your returns.
Want your telecom ITC captured correctly every month?
Get GST Return Help →Telecom GST Compliance Essentials
For consumers, GST on telecom is simply embedded in the plan price — nothing to file. For businesses claiming ITC on telecom spend, the checklist below keeps the credit safe:
- Telecom invoice in the business name + GSTIN
- Correct 18% rate under SAC 9984
- GST breakup visible on postpaid / enterprise bills
- Invoice reflected in GSTR-2B
- Business vs personal use segregated
- Pro-rata split for mixed-use connections
- ITC claimed within the time limit
- Reconciled with GSTR-3B each period
Telecom is one of the cleanest ITC categories for a business — a single 18% rate, monthly invoices and clear SAC 9984 classification. The only common leak is bills raised in an employee's personal name instead of the company's: those cannot be credited. Fix the billing name once and the ITC flows automatically.
- Rates & SAC lookup: gst.gov.in
- CBIC rate finder: cbic-gst.gov.in
- ITC conditions: Section 16, CGST Act 2017
- Blocked credit: Section 17(5), CGST Act 2017
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.