GST on Postpaid Mobile Bill: Know the Tax Percentage on Your Plan
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 postpaid mobile bill, helping you understand what you’re paying for.
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Is GST Applicable on Postpaid Mobile Bills?
Yes. All mobile telecom services—including postpaid connections, prepaid recharges, internet packs, and international roaming—are taxable under Goods and Services Tax (GST). These services fall under SAC Code 9984 (Telecommunication, broadcasting, and information supply services).
GST Rate on Mobile Bill in India
| Service | GST Rate |
|---|---|
| Postpaid mobile bill | 18% |
| Prepaid recharge | 18% |
| International roaming | 18% |
| Mobile data and SMS packs | 18% |
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Sample Calculation: GST on a ₹999 Postpaid Plan
Base Plan: ₹999
GST @ 18%: ₹179.82
Total Bill: ₹1,178.82
GST Tax on Mobile Bill: What’s Included?
- Monthly rental/plan charges
- Call and SMS services
- Data usage
- Value-added services (VAS)
- National and international roaming
- Overdue bill charges (in some cases)
It does not apply to handset EMI payments or non-telecom charges (if billed separately).
Can You Claim Input Tax Credit (ITC)?
Yes, if you’re a GST-registered business or freelancer using mobile service for business communication.
- 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.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions (FAQs)
- What is the GST on postpaid mobile bill in India?It’s 18% on the total value of telecom services in your postpaid bill.
- Is GST the same for prepaid and postpaid?Yes. Both prepaid and postpaid mobile plans attract 18% GST.
- Can I claim GST paid on mobile bill as a business expense?Yes, if you are GST-registered and the mobile number is used for business purposes.
- Does GST apply to international roaming?Yes. Roaming charges are also subject to 18% GST.
- Is GST applied on late payment fees in mobile bills?In some cases, yes—especially if the late fee is part of the telecom service billing.
