--- title: "New GST Rate for Broadband 2026: 18% Rate on Broadband, Internet" description: "New GST rate on broadband in 2026 is 18% on internet plans and broadband connections. Busy auto-applies the right GST slab on every invoice effortlessly." canonical: "https://busy.in/gst-rates/broadband/" author: "Susheel Kumar" published: "2025-05-19T08:16:12.000Z" category: "GST Rates" --- - 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. # 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 on wifi plans**, how it applies to home and commercial use, and how service providers manage compliance. ## 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% | ## **What Is Broadband Under GST?** Broadband services fall under telecommunication and internet-related services as per [GST](https://busy.in/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](https://busy.in/sac-codes/) 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](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) (ITC), while home users cannot. | User Type | GST Rate | ITC Eligibility | | --- | --- | --- | | Residential/Home | 18% | No | | Business/Commercial | 18% | Yes | Live Demo Available Today ## Installation And Rental Charges? Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **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](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) if turnover exceeds ₹20 lakhs - Charge 18% GST on all plans and additional services - Use SAC Code 998414 in [GST invoices](https://busy.in/gst/a-guide-to-invoicing-under-gst/) - File [monthly GSTR-1 and GSTR-3B](https://busy.in/gst/gst-returns/) - Maintain proper records of plans, discounts, and customer usage You can also [claim ITC](https://busy.in/gst/what-expenses-can-be-claimed-as-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. ## About the author **Susheel Kumar** 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 on broadband services in India? Broadband and internet services are taxed at 18% GST. ### Is there a different GST rate for home and business broadband? No. Both residential and commercial broadband services are subject to 18% GST. ### Can businesses claim GST on broadband bills? Yes, registered businesses may claim Input Tax Credit if the broadband service is used for business purposes. ### Is GST charged on installation or router rental charges? Yes. Installation fees, router rentals, and other broadband-related service charges are also taxed at 18%. ### What is the SAC code for broadband services? Broadband and internet services fall under SAC heading 9984, commonly under 998422 for internet access services. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)