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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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 GST Rate
| 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)
- 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.
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 (FAQs)
- 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.
