GST classification of WiFi services
WiFi services in India fall under the same telecommunication services category as broadband, SAC 998414 at 18% GST, per CBIC Notification 11/2017. The classification doesn't differ for hotspot rentals, event WiFi, or co-working WiFi; what changes is the contract structure (one-time event vs monthly rental vs membership), not the tax treatment.
Distinct sub-categories of WiFi service
- Hotspot rental, short-term, device-based. Common in travel (international or domestic). Receipt captures the device IMEI/serial, rental dates, and bandwidth limit.
- Event WiFi, conferences, weddings, exhibitions. ISP provides a dedicated AP set with peak concurrent-user limits. Receipt typically lists venue, dates, and total user count.
- Office WiFi service, separate from broadband if your office buys managed WiFi (mesh APs, AP-as-a-service from ISP). Distinct line on the bill.
- Co-working WiFi, bundled into membership. ISP-style itemisation rare; co-working space charges a single line and may need to split for ITC.
ITC eligibility for businesses
Same as broadband: a GST-registered business can claim 18% input tax credit on WiFi-service bills if the service is used for business and the invoice carries the company's name + GSTIN, per Section 16 of the CGST Act. Practical considerations:
- Co-working spaces can issue ITC-eligible invoices if you specify your company name + GSTIN at signup.
- Event WiFi vendors can issue tax invoices to your company's GSTIN, they often default to a venue invoice; ask for company-name re-issue.
- Travel hotspot rentals issued to an individual employee cannot be claimed for company ITC; reimburse the employee via expense report instead.
What the bill must contain
- WiFi service provider name, address, GSTIN
- Customer / company name, address, GSTIN (for ITC)
- Service period, exact dates and times where time-bound
- Bandwidth tier or speed slab
- Concurrent user / device limit
- Service add-ons (priority access, dedicated SSID, technical support)
- Base service charge + add-ons on separate lines
- GST split as CGST + SGST (intra-state) or IGST (inter-state, common for travel hotspots crossing states)
- Total payable, mode of payment, and signature
Co-working bills, how to split for ITC
If your co-working space (WeWork, Awfis, etc.) provides a single membership line that includes WiFi + desk + utilities, ask the operator for an itemised invoice. Most do this on request. The split typically is:
- Desk / hot-seat / cabin charge, 18% GST
- WiFi service component, 18% GST (same rate, separate line)
- Meeting room hours, 18% GST
- Coffee + snacks, 5% (food) or 18% (services)
The total GST is the same; the split helps your accounts team reconcile to specific cost heads.
Common mistakes
- Claiming GST on hotspot rental issued in an individual employee's name. Not ITC-eligible.
- Using 12% GST instead of 18%. WiFi is not in the 12% bracket.
- Missing the service period dates on event WiFi, auditors flag.