GST on Wifi Services in India: Applicable Rates and Billing Details
In today’s digital world, wifi services are no longer a luxury—they’re a necessity. From home plans to business broadband, every internet bill includes GST, but not everyone knows how much they’re paying. This blog breaks down the gst on wifi services, including data plans, routers, dongles, and everything you need to know as a consumer or ISP.
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GST on Wifi Plans: Internet Services
Whether you’re using fiber broadband, a home wifi connection, or a business internet lease line, all come under the GST regime.
| Service Type | SAC Code | GST Rate |
|---|---|---|
| Wifi / broadband plans | 9984 | 18% |
| Mobile data recharge (postpaid/prepaid) | 9984 | 18% |
| Business lease lines | 9984 | 18% |
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How Much GST on Wifi Plans?
| Plan Cost | GST (18%) | Total Payable |
|---|---|---|
| ₹1,000 | ₹180 | ₹1,180 |
Whether billed by JioFiber, Airtel, ACT, BSNL, or any ISP, GST at 18% is uniformly charged.
GST on Wifi Routers and Dongles
| Device Type | HSN Code | GST Rate |
|---|---|---|
| Wifi router (wired/wireless) | 8517 | 18% |
| Wifi dongle (USB device) | 8517 | 18% |
| Modem-router combo | 8517 | 18% |
Who Needs to Pay GST on Wifi Services?
- ✅ Home wifi users (via ISPs)
- ✅ Small offices and startups
- ✅ Businesses with commercial broadband
- ✅ Co-working spaces
- ✅ Schools, cafes, and institutions
While home users cannot claim Input Tax Credit (ITC), businesses can claim ITC on GST paid for internet services used for work.
Input Tax Credit for Businesses
If you’re using internet or wifi services for commercial use:
- Claim ITC on your monthly wifi bills
- Ensure your vendor/ISP issues a GST-compliant invoice
- Use the GST in GSTR-3B return
This is especially beneficial for:
- IT companies
- E-commerce operations
- Marketing agencies
- Freelancers working under a GST-registered entity
Whether you’re setting up home internet or running a business, knowing the gst on wifi services helps you budget better and ensures tax compliance. From your monthly plan to the router you buy, the 18% GST slab is uniformly applied across the board.
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions (FAQs)
- What is the GST on WiFi services in India?GST is 18% on all WiFi and broadband services, whether home or commercial.
- How much GST on WiFi plans monthly?For a ₹1,000 plan, you’ll pay ₹180 as GST, totaling ₹1,180.
- Is GST applicable on WiFi routers and dongles?Yes, both routers and WiFi dongles are taxed at 18% under HSN 8517.
- Can I claim ITC on WiFi service used in office?Yes. Businesses and registered professionals can claim Input Tax Credit on broadband used for work.
- Is GST same for prepaid WiFi data recharge?Yes. Whether postpaid or prepaid, internet and data plans attract 18% GST.
