New GST on Postpaid Mobile Bill: Know the Tax Percentage on Your Plan
- The gst on postpaid plans is 18% in India, and the rate remains unchanged under the current GST structure.
- Prepaid mobile recharges, data packs, SMS packs, and taxable telecom services generally attract 18% GST.
- Telecommunication services under Heading 9984 generally attract 18% GST.
- Businesses can claim eligible Input Tax Credit (ITC) on mobile bills used for business purposes, subject to GST conditions.
- Late fees or penalties charged for delayed payment of telecom bills are included in the taxable value and attract applicable GST.
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
The gst on mobile recharge is also 18%, along with postpaid bills, data packs, SMS packs, and other taxable telecom services.
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. The gst on postpaid bill is 18% on the taxable value of the 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
The mobile recharge gst rate is 18%, and the same rate generally applies to postpaid bills, mobile data, SMS packs, roaming, and other taxable 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% |
Service
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Service
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Service
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Service
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Service
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
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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, the postpaid gst rate is generally 18%, and the same rate applies to other taxable mobile telecom services.
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.
