New GST Rate for Broadband Services in India
Quick Summary
- The GST rate for all broadband services in India is set at 18%, effective from September 22, 2025.
- This 18% GST applies to both wired and wireless broadband, leased lines, and public Wi-Fi services.
- There is no difference in GST rates for home and business broadband users, but businesses can claim Input Tax Credit (ITC).
- Broadband service charges, including installation and equipment rental, are subject to the 18% GST.
- Internet service providers must register for GST if their turnover exceeds ₹20 lakhs and file regular GST returns.
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 on wifi plans, 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
GST on broadband and internet services in India falls under telecommunication services. Internet access, mobile data, leased lines, and similar telecom data services are taxable under the GST framework.
Even after the GST updates effective from 22 Sep 2025, broadband and internet services continue to attract the standard 18% GST rate.
Broadband Internet GST Rate Comparison
| Type of Service | SAC Code | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Wired broadband internet (fiber or cable connection) | 998422 | 18% | 18% |
| Wireless broadband or mobile data services | 998422 | 18% | 18% |
| Public Wi-Fi or hotspot internet services | 998422 | 18% | 18% |
| Leased line or private data network services (VPN/MPLS) | 998414 | 18% | 18% |
| Dedicated data transmission services | 998415 | 18% | 18% |
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 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 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.
How to Calculate GST on Broadband Services
To calculate GST on broadband or internet services, apply the GST rate to the taxable value of the service.
Formula
GST Amount = Service Value × GST Rate ÷ 100
Total Bill Amount = Service Value + GST Amount
Example
Internet plan price: Rs 1,200
GST rate: 18%
GST amount = 1,200 × 18 ÷ 100 = Rs 216
Final bill = Rs 1,416
GST Compliance for Internet Service Providers (ISPs)
- Must have GST registration if turnover exceeds ₹20 lakhs
- Charge 18% GST on all plans and additional services
- Use SAC Code 998414 in GST invoices
- File monthly GSTR-1 and GSTR-3B
- Maintain proper records of plans, discounts, and customer usage
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.
