New GST Rate for Broadband Services in India

Broadband internet is no longer a luxury—it’s a necessity for homes, schools, offices, and businesses. But have you ever checked the tax charged on your monthly broadband bill? Let’s explore the gst rate for broadband, how it applies to home and commercial use, and how service providers manage compliance.

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New GST Rate on Broadband & Internet Services in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates and SAC mapping for broadband and related telecom internet services (no compensation cess).

Broadband New GST Rate

Type of Service SAC Code New GST Rate
Wired broadband (fibre/cable) – internet access 998422 18%
Wireless broadband (mobile data) – internet access 998422 18%
Leased line / private network (VPN/MPLS) 998414 18%
Data transmission / dedicated internet 998415 18%
Public Wi-Fi / hotspot services – internet access 998422 18%

Notes: Internet access services map to SAC 998422; private networks to 998414; data transmission to 998415. Under the updated slabs, telecom/internet services continue at the standard 18%.

What Is Broadband Under GST?

Broadband services fall under telecommunication and internet-related services as per  GST  law. These include:

  • High-speed home internet (wired/fiber)
  • Office or leased-line broadband
  • Mobile broadband plans (data packs)
  • Wi-Fi services offered commercially

All of these fall under  SAC Code  9984 and are taxable under GST.

Broadband Old GST Rate

(Old GST Rates – Applicable Until 21st September)

Type of Service SAC Code GST Rate
Wired broadband (fiber/cable) 998414 18%
Wireless broadband (mobile data) 998414 18%
Leased line / commercial internet 998414 18%
Public Wi-Fi / hotspot services 998414 18%

Broadband Connection GST Rate for Homes vs Business

There is no difference in the broadband connection gst rate for residential or commercial users. However, business users can  claim Input Tax Credit  (ITC), while home users cannot.

User Type GST Rate ITC Eligibility
Residential/Home 18% No
Business/Commercial 18% Yes

GST on Broadband Internet Bills

If you’re a customer, here’s what you’ll typically see on your monthly bill:

  • Plan charges (e.g., ₹799/month)
  • GST @ 18% = ₹143.82
  • Total Payable = ₹942.82

The gst on broadband internet applies to the total value of service, including any equipment rental or installation fees.

GST Compliance for Internet Service Providers (ISPs)

You can also  claim ITC  on routers, modems, marketing expenses, and support services.

Conclusion

Understanding the gst rate for broadband helps customers know what they’re paying and allows service providers to stay compliant. Whether you’re browsing at home or running an online business, 18% GST is uniformly applied to all broadband services.

Susheel Kumar
Susheel Kumar
Chartered Accountant
MRN No.: 096252
City: Delhi

I am a Chartered Accountant with over 20 years of experience and a finance content writer. I focus on educating people about finance and taxation. I have written many blog posts on finance, taxation, trading, and investment on the BUSY website. My goal is to increase financial understanding by making complex concepts easier to grasp and to support educational programs in India.

Frequently Asked Questions

  • What is the GST rate for broadband services in India?
    It is 18%, whether wired, wireless, or leased-line.
  • Is there a difference in broadband GST rate for home and business users?
    No. Both are taxed at 18%, but only businesses can claim Input Tax Credit (ITC).
  • Can I claim GST on broadband for my business?
    Yes, if you are registered under GST and use broadband for business purposes.
  • Is GST charged on broadband installation or equipment rental?
    Yes. Charges for installation, router rental, or upgrade fees are also taxed at 18%.
  • What is the SAC code for broadband internet services?
    It's 998414 under the telecommunications category.
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