GST on Wi-Fi and Broadband Bills in India: Rate, SAC Code and ITC

What is the GST rate on Wi-Fi, broadband and internet bills?

GST on Wi-Fi, broadband and internet bills in India is 18%. Internet access, fibre plans, landlines and mobile plans are all telecommunication services under SAC heading 9984, which carries 9% CGST in the services rate notification, plus 9% SGST, or 18% IGST between states. Wi-Fi routers and modems are goods under HSN 8517, also at 18%.

This guide is for homes, shops and offices that pay an internet bill and want to know what the tax lines mean. It answers the question generically, whichever provider sends your bill, and covers rates, codes, credit and the way the tax is split. If you are also buying laptops or printers for the same office, our guide to GST on laptops, computers and printers covers those codes.

Which SAC and HSN codes apply to internet services and routers?

Internet and mobile services sit under SAC heading 9984, and the hardware that delivers them sits mostly under HSN 8517; all of these are at 18%. The table lists only entries we checked in Notification 11/2017-Central Tax (Rate), the CBIC explanatory notes to the scheme of classification of services and Notification 9/2025-Integrated Tax (Rate).

The explanatory notes say internet access covers wired, wireless, satellite and fixed wireless connections, so a fibre plan and an over-the-air wireless plan take the same code. They also say mobile data belongs under 998413, not 998422. Both codes sit inside heading 9984, and the rate is set at the heading, so the tax comes out the same.

Did the 22 September 2025 GST changes touch internet or routers?

No. Telecom services and routers stayed at 18%. The GST Council’s PIB press release of 3 September 2025 lists the services whose rates changed, and heading 9984 is not among them. Heading 8517 does not appear in its goods lists either.

• Services: Notification 15/2025-Central Tax (Rate), in force from 22 September 2025, amends several serial numbers of the services notification but not serial 22, the telecom entry.
• Goods: the new goods notification, in force from the same date, keeps heading 8517 in its 18% schedule.
• Old invoices: a broadband bill or router invoice from before that date should show the same 18% as one dated after it.

How do you read the GST lines on your broadband bill?

Your bill shows either CGST plus SGST at 9% each or IGST at 18%, depending on whether the place of supply is in the same state as the provider’s registration. The total tax is 18% either way; only the split changes.

For telecom services, Section 12(11) of the IGST Act fixes the place of supply. For a fixed line, leased circuit or internet leased circuit, it is where the line is installed. For a postpaid mobile connection, it is the billing address the provider holds for you. For prepaid recharges and other cases, the Act gives separate rules.

• Taxable value: the plan charge before tax, plus any extra lines such as a static IP or add-on pack.
• CGST and SGST: 9% each when the provider bills from the same state as the place of supply.
• IGST: 18% when the provider bills from another state.
• GSTIN: the provider’s GSTIN always, and yours if you gave it, which you need to claim credit.
• SAC: usually printed as 9984 or a six-digit code starting with 9984.
• Router line: a router supplied as part of the connection is usually part of the service bill; one bought separately should carry HSN 8517.

How is GST worked out on a bill of 100?

Multiply the taxable value by 18% and add it; if a plan is quoted inclusive of GST, divide by 118 and multiply by 18 to find the tax. Here is a worked example in plain units.

1. Plan charge: on a broadband bill of 100, GST at 18% is 18 and the total is 118.
2. Same-state split: that 18 appears as 9 CGST and 9 SGST.
3. Other-state split: it appears as 18 IGST instead.
4. Inclusive price: if a plan is advertised at 118 including GST, the tax is 118 × 18 ÷ 118, which is 18, and the taxable value is 100.
5. Router bought outright: a router invoice of 100 under HSN 8517 also carries 18, for a total of 118.
6. Partly personal use: if your CA agrees that 60% of a connection’s use is for business, credit is limited to that share: 60% of 18, or 10.8. How the share is worked out is for your CA.

Can a business claim input tax credit on internet bills?

Generally yes. A registered business that uses the internet or a phone line in the course of its business can usually claim the GST on the bill as input tax credit, subject to the conditions in Section 16 of the CGST Act. A household, or a business not registered for GST, cannot.

Section 16 sets the main conditions, and Section 17(1) limits the credit to the business share when a connection is used partly for other purposes. In practice, check these points:

• The bill is a tax invoice in the business name, with your GSTIN on it.
• The provider has reported the invoice in its return, so it shows up in your credit statement.
• The service has been received and the tax has been paid to the government.
• You have filed your own return for the period.
• A connection at the owner’s home used partly for the shop is apportioned, not claimed in full.
• Mobile plans in an employee’s personal name are harder to support; bills in the business name are cleaner.

The same logic applies to routers, switches and cabling bought for an office. For the cameras that often share the same network, see our guide to GST on CCTV cameras.

How DVM Techno Can Help

DVM Techno is a software company in Gurgaon with a local office in Kasni, Jhajjar. From there we provide wireless broadband in 37 villages around Kasni across Salhawas block and Jhajjar tehsil, with 30, 50, 100 and 200 Mbps plans, unlimited data with no FUP, free installation of the antenna and router, and local support from Kasni. Call or WhatsApp +91-8448523313 for current prices in your village. Tax treatment of your bill is for your CA to decide.

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