GST on mobile services
Mobile telecommunication services in India, voice, SMS, data, and value-added services, attract 18% GST, classified under SAC 998413 (Mobile Telecommunications Services, a sub-classification of the broader telecom SAC 9984), per CBIC Notification 11/2017. The 18% rate has stayed unchanged through the September 2025 GST 2.0 reform, telecom was not part of the rate restructuring. The same rate applies to:
- Prepaid recharges (talk-time, data, combo plans)
- Postpaid plan invoices (monthly bills)
- Add-on packs (roaming, OTT bundles, data top-ups)
- DTH (direct-to-home TV) services like Tata Play, Airtel Digital TV, Sun Direct, Dish TV
- Data card / dongle services (Jio JioFi, Airtel Hotspot)
Prepaid vs postpaid, same tax, different billing
The GST rate is identical (18%) but billing differs:
- Prepaid recharge, you pay upfront for a fixed validity. The receipt shows the recharge date, plan, and validity end-date. ITC chain works only if the receipt is in the company's name with company GSTIN.
- Postpaid invoice, billed monthly by the operator. Easier to issue in a company's name and claim ITC. Telecom giants (Jio, Airtel) have dedicated B2B postpaid plans for company connections.
ITC for business mobile connections
Your business can claim 18% input tax credit on mobile recharge / postpaid bills if:
- The connection is in the company's name with company GSTIN
- The number is used for business purposes
- The operator's GSTR-1 reflects the invoice in your GSTR-2B
Personal connections recharged with company funds are not ITC-eligible, even if the employee uses them for work. The mobile number must be on the company's account.
Aggregator-driven recharges (Paytm, PhonePe, GPay)
When you recharge through a payment app, the GST is collected by the operator (Jio/Airtel/Vi), not the aggregator. The receipt should show the operator's GSTIN, not Paytm's or PhonePe's. The aggregator earns a small commission separately, taxed under different rules. Always download the operator's e-receipt for ITC purposes, the aggregator's confirmation is not a tax invoice.
OTT bundles in plans
Jio's combo plans bundle Disney+ Hotstar, JioCinema, JioSaavn, etc. Airtel bundles Wynk, Airtel Xstream Premium. Vi bundles Disney+ Hotstar, Sony LIV, ZEE5. The bundled OTT is treated as part of the same telecom service for GST purposes, no separate rate. The OTT line on the receipt is a courtesy disclosure, not a tax line.
Roaming and international add-ons
International roaming plans attract 18% GST when the recharge is done in India. Outside India, the foreign operator's local taxes apply. Our generator records the roaming pack as a separate line; ITC eligibility same as base recharge.
What the receipt must contain
- Operator name, address, GSTIN
- Mobile number / DTH ID being recharged
- Customer name (for ITC, must be company name)
- Recharge date and time
- Plan name with talk-time / data / validity
- Add-on packs (roaming, OTT) on separate lines
- Base value
- GST split as CGST + SGST (intra-state) or IGST (rare for prepaid; common for postpaid B2B across states)
- Total amount charged
- Mode of payment
- Receipt / transaction ID
Common mistakes
- Using Paytm/PhonePe receipt for ITC. Aggregator confirmations aren't tax invoices; download the operator's e-receipt instead.
- Claiming GST on a personal-name recharge for company ITC. Connection must be in company name.
- Showing 12% or 5% GST on a mobile plan. Wrong slab; mobile is 18%.
- Skipping the validity date. Every recharge receipt should show the new validity end-date for the customer's reference.
