New GST on Postpaid Mobile Bill: Know the Tax Percentage on Your Plan
Quick Summary
- The new GST rate for postpaid mobile bills in India is 18%, effective after September 22, 2025.
- This 18% GST rate also applies to prepaid recharges, international roaming, and mobile data and SMS packs.
- GST is applicable to all telecom services under SAC Code 9984, which includes postpaid plans.
- Businesses registered for GST can claim input tax credit on mobile bills if the service is used for business purposes.
- Late payment fees may also incur GST if they are part of the telecom service billing.
If you’re using a postpaid mobile connection, you’ve probably noticed a separate tax amount added to your monthly bill. That’s GST (Goods and Services Tax). But how much is it? What does it apply to? And can it be claimed as a business expense? This blog breaks down the gst on mobile recharge, helping you understand what you’re paying for.
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GST on Mobile Bills in India
Mobile telecom services in India are taxable under GST. This includes postpaid mobile bills, prepaid recharges, mobile internet packs, SMS packs, and international roaming charges. These services fall under Heading 9984 - Telecommunications, broadcasting and information supply services, and the standard GST rate remains 18%.
Is GST Applicable on Postpaid Mobile Bills?
Yes. GST applies to postpaid mobile bills and other telecom services. The applicable rate is 18% GST on the value of the taxable telecom service.
New GST Rate on Mobile Bill in India
For mobile telecom services, the practical position is that the GST rate remains 18% both before and after 22 Sep 2025. So this category is better presented as a current GST rate guide rather than as a major rate-change announcement.
GST Rate Table for Mobile and Telecom Services
| Service | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
|---|---|---|
| Postpaid mobile bill | 18% | 18% |
| Prepaid recharge | 18% | 18% |
| International roaming | 18% | 18% |
| Mobile data and SMS packs | 18% | 18% |
| Value added telecom services | 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%
GST Tax on Mobile Bill: What’s Usually Included?
GST on a mobile bill generally applies to the telecom service portion, such as:
- monthly rental or plan charges
- voice call charges
- SMS charges
- data usage charges
- value added services
- national and international roaming
- late payment surcharge or fee, where it is charged as part of the telecom billing for delayed payment
A separately billed handset purchase or EMI is not itself the telecom service merely because it appears on the same bill.
Can You Claim Input Tax Credit (ITC)?
Yes, if you’re a GST-registered business or freelancer using mobile service for business communication. Here are some points to claim Input Tax Credit .
- Ensure your mobile provider issues GST-compliant invoices
- The SIM card or account should be in your business name
- Mobile service must be used for business-related activities
Whether you’re an individual or a business user, understanding the gst on postpaid mobile bill helps you track your expenses better and stay tax-compliant.
How to Calculate GST on Mobile Phones Bills
For telecom services, GST is generally calculated at 18%.
The formula when the price is before GST
GST Amount = Taxable Value × 18%
Final Bill Amount = Taxable Value + GST Amount
Example 1: Postpaid mobile bill
Suppose your telecom service value for the month is Rs 1,000.
GST = 1,000 × 18% = Rs 180
Final Bill Amount = Rs 1,180
Example 2: Prepaid recharge
Suppose you do a recharge with a taxable value of Rs 500.
GST = 500 × 18% = Rs 90
Final Amount = Rs 590
Formula when price is inclusive of GST
If the billed amount already includes GST:
Taxable Value = GST Inclusive Amount ÷ 1.18
GST Amount = GST Inclusive Amount - Taxable Value
Example 3: GST inclusive mobile bill
Suppose your total billed amount is Rs 1,180, inclusive of GST.
Taxable Value = 1,180 ÷ 1.18 = Rs 1,000
GST Amount = 1,180 - 1,000 = Rs 180
For intra-state supplies, 18% GST is usually split into 9% CGST + 9% SGST. For inter-state supplies, it is usually charged as 18% IGST.
