Mobile Recharge GST: Rates, Codes and Costs

Mobile Recharge GST at a Glance

The GST rate on mobile recharge services in India is 18%. It applies to prepaid recharges, postpaid plans, data packs, and SMS packs.

GST applies to these services from July 1, 2017. Telecom firms add the tax to the taxable value before billing the customer.

The mobile recharge GST HSN code is 9984. This code covers telecommunications and related services.

The short answer is simple. Most mobile recharge services carry 18% GST.

Which GST Rate Applies to Mobile Recharge Services?

The GST rate on mobile recharge is 18% under the current tax structure. This rate covers common telecom services sold by network firms.

The rate usually applies to the service value shown on the bill. It does not depend on whether the plan is prepaid or postpaid.

Here is how the main service types fit into the mobile recharge GST rate in India:

Service	GST treatment
Prepaid recharge	18% GST
Postpaid mobile plan	18% GST
Mobile data pack	18% GST
SMS pack	18% GST
Voice add-on pack	18% GST

These services form part of telecom supply. The seller collects GST and pays it to the government.

Mobile Recharge HSN Code and GST Rate

The applicable HSN code for mobile recharge is 9984. HSN means Harmonized System of Nomenclature.

Code 9984 covers telecommunications services. It helps sellers classify telecom supplies on invoices and tax records.

Businesses may see a service accounting code, or SAC, instead of an HSN label. SAC is the more precise term for services.

Many buyers search for “mobile recharge HSN code 18 GST rate.” The useful answer is code 9984 with an 18% GST rate.

• Service group: telecommunications
• Code used for the service: 9984
• Current GST rate: 18%
• Tax start date: July 1, 2017

Check the seller’s tax invoice for the exact code. Some bills may show a more detailed service code.

How to Calculate GST on a Mobile Recharge

GST calculation needs the taxable value and the tax rate. The basic formula is taxable value multiplied by 18%.

For example, a recharge with a taxable value of ₹100 creates GST of ₹18. The final customer charge becomes ₹118.

Use this simple method when the price excludes GST:

1. Find the taxable value of the recharge.
2. Multiply that value by 18.
3. Divide the result by 100.
4. Add the GST amount to the taxable value.

If a plan costs ₹590 including GST, the tax is not ₹106.20. You must first remove the tax from the total.

The pre-tax value is ₹590 divided by 1.18. That gives ₹500. GST is then ₹90.

For an intra-state supply, the 18% tax may split into CGST and SGST. Each part is often 9%.

For an inter-state supply, IGST may apply at 18%. The bill should show the tax type and amount.

What Mobile Recharge GST Means for Consumers

Consumers pay GST as part of the recharge price. The tax may appear in the plan price or on the final receipt.

A plan advertised at ₹118 may include ₹18 GST. A plan listed at ₹100 before tax may cost ₹118 at checkout.

Read the tax details when comparing plans. Two plans with the same face value may show different inclusions.

• Check whether the price includes GST.
• Keep invoices for business-related use.
• Review the tax amount on postpaid bills.
• Ask the seller about unclear charges.

GST does not change the core service terms. Data limits, call benefits, and expiry rules remain separate plan features.

What Businesses Need to Know About GST and Recharge

Businesses record mobile recharge as a telecom service cost. The invoice should show the supplier details and GST amount.

A firm may claim Input Tax Credit, or ITC, when the recharge supports business work. The firm must meet the GST rules for that claim.

ITC means a business can offset eligible GST paid against its GST liability. The credit does not usually apply to personal mobile use.

• The invoice should show the business GST number.
• The supplier should report the invoice correctly.
• The service should support business activity.
• The buyer should keep payment and invoice records.
• Personal use should be removed or split fairly.

For mixed use, the business should claim only the eligible share. Keep a clear basis for that split.

Rules can vary with the business setup and use pattern. Ask a tax adviser before claiming a large or disputed credit.

Recent GST Rules and Rate Changes

The current GST rate for standard mobile recharge services remains 18%. There is no broad new rate that changes ordinary mobile recharges.

Government rate schedules can change through council decisions and official notices. Sellers should check the latest CBIC GST rate schedule before changing billing rules.

The 18% rate has applied to these services since July 1, 2017. Later changes may affect special telecom supplies, billing rules, or record needs.

Do not rely on old social posts that claim a new GST rate on mobile recharge. Check the invoice and the latest government notice.

• Confirm the service classification.
• Check the current rate schedule.
• Update billing software after a valid notice.
• Keep records of rate changes and invoice dates.

Businesses should review tax settings after each official change. Consumers should check the tax breakup on new bills.

Key Points to Remember

The mobile recharge GST rate in India is 18% for common telecom services. Code 9984 covers the relevant telecommunications service group.

Use the taxable value to work out GST. Business users may claim eligible ITC when the recharge supports business needs.

Rates can change only through valid government action. Use official notices rather than unverified rate claims.