GST on Telecom Services — Rates, ITC & Place of Supply
Complete guide to GST on telecommunications: mobile services at 18%, handsets at 12%, DTH/cable TV, tower infrastructure, OTT platforms, international roaming, place of supply rules, and ITC for telecom operators.
GST rates were revised in September 2025, and the rates on this page have not yet been checked by a tax professional against that revision. Confirm the current rate in the CBIC rate notifications before you invoice.
18%
Telecom Services
18%
DTH Services
12%
Handsets
18%
SIM Cards
18%
Tower Infra
18%
ISP/Broadband
18%
Roaming (Intl)
18%
OTT Services
GST Framework for Telecom
Telecom Services at 18% GST
All telecommunication services — voice calls, SMS, mobile data, broadband, leased lines — attract 18% GST. This applies uniformly to prepaid, postpaid, and enterprise plans. The service tax era rate was 15% (14% ST + 0.5% SBC + 0.5% KKC), so GST increased the effective rate by 3 percentage points.
Place of Supply — Telecom
Place of supply for telecom services is determined by: (1) Postpaid — billing address of recipient, (2) Prepaid — location where recharge/top-up is sold, (3) If via agent — agent's location. For international roaming, place of supply = location of first subscriber (Indian number = taxable in India).
ITC for Telecom Operators
Telecom companies (Jio, Airtel, Vi, BSNL) can claim full ITC on: network equipment (towers, switches, routers), fiber optic cables, spectrum auction payments (post-2021 clarification), electricity for towers, IT systems, and rented premises. ITC on tower construction was initially disputed but later allowed.
DTH & Cable TV
Direct-to-Home (DTH) and cable TV services attract 18% GST. Set-top boxes are taxed at 18%. Cable operators pay GST on subscription fees collected from customers. Multi-system operators (MSOs) and local cable operators (LCOs) both need GST registration if above threshold.
Mobile Handsets at 12%
Mobile phones and smartphones attract 12% GST (HSN 8517). Accessories (chargers, earphones, cases) attract 18%. This makes India one of the lowest-taxed markets for handsets globally. Feature phones and smartphones both at 12% — no differentiation based on price point.
Tower Infrastructure & Sharing
Telecom tower companies (Indus Towers, ATC India) charge 18% GST on tower sharing/infrastructure services. Passive infrastructure sharing (tower, space, power) is taxed as a supply of service. Active infrastructure sharing (spectrum, antenna) also at 18%. Long-term tower leases are treated as supply of service, not immovable property.
Telecom GST Rate Table
| Service/Product | SAC/HSN | GST Rate | Notes |
|---|---|---|---|
| Voice/SMS/data (prepaid) | 9984 | 18% | All telecom services |
| Voice/SMS/data (postpaid) | 9984 | 18% | Same rate as prepaid |
| Broadband/ISP services | 9984 | 18% | Fiber, DSL, wireless |
| Leased line/MPLS | 9984 | 18% | Enterprise connectivity |
| DTH services | 9984 | 18% | Tata Play, Airtel Digital |
| Cable TV subscription | 9984 | 18% | MSO/LCO charges |
| Mobile handsets | 8517 | 12% | Smartphones & feature phones |
| SIM cards supply | 9984 | 18% | Treated as telecom service |
| Tower sharing services | 9972 | 18% | Passive infra sharing |
| OTT streaming (Netflix etc) | 9984 | 18% | OIDAR service |
| International roaming | 9984 | 18% | POS = subscriber location |
| VAS (value-added services) | 9984 | 18% | Ring tones, caller tunes |
Frequently Asked Questions
What is the GST rate on mobile recharges and phone bills?
Can telecom companies claim ITC on spectrum payments?
How is place of supply determined for telecom?
What about GST on OTT platforms like Netflix, Hotstar?
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