GST Impact on telecommunication / Mobile Companies

By | September 28, 2016
(Last Updated On: September 28, 2016)

GST Impact on telecommunication / Mobile operators

Place of Supply – Under the GST Law, certain guidelines are provided to determine place of supply for the telecom companies/sector as detailed below;. 

ItemPlace of Supply
Prepaid mobile VouchersLocation where the pre-payment is received or the voucher is sold.



Mobile Recharge made through internet banking/electronic mode of paymentLocation of service recipient on record of suppliers.



Post-paid mobile / internet services of Post-paid mobileBilling address of the subscribers.
Fixed Line/leased circuit/internet leased circuit cable or dish antena,Point where the line circuitor cable connection was installed for receipt of services.


GST Impact on telecommunication / Mobile operators : CBEC FAQs brings clarity

CBEC vide FAQs on GST : Clarified the Following Question No 15  in Place of Supply Chapter

Q 15. What will be the place of supply for mobile connection? Can it be the location of supplier?

Ans. The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state. The consumption principle will be broken if the location of supplier is taken as place of supply and all the revenue may go to a few states where the suppliers are located.

The place of supply for mobile connection would depend on whether the connection is on postpaid or prepaid basis.

In case of postpaid connections, the place of supply shall be the location of billing address of the recipient of service.

In case of pre-paid connections, the place of supply shall be the place where payment for such connection is received or such pre-paid vouchers are sold. However if the recharge is done through internet/e-payment, the location of recipient of service on record shall be the taken as the place of service.

Education Guide on Goods & Service Tax (GST)

S. No.Title of the Post
1.Goods and Services Tax (GST): An Overview
2 Levy of GST & Exemption from Tax
3.GST Registration
4.Meaning  and Scope of Supply
 5Time of Supply
6Valuation in GST
7.GST  Payment of Tax
8Electronic Commerce under Goods & Service Tax (GST)
9Job Work under Goods & Service Tax (GST)
10Input Tax Credit under Goods & Service Tax (GST)
11Concept of Input Service Distributor in Goods & Service Tax (GST)
12Returns Process and matching of Input Tax Credit under GST
13Assessment and Audit under GST
14Refund under GST
15Demands and Recovery under GST
16Appeals, Review and Revision in GST
17Advance Ruling in Goods and Service Tax (GST)
18Settlement Commission in Goods and Service Tax (GST)
19Inspection, Search, Seizure and Arrest under GST
20Offences, Penalty, Prosecution & Compounding in GST
21Integrated Goods & Service Tax (IGST) Act Overview
22.Place of Supply of Goods and Service under GST
23.Frontend Business Process on GST Portal
24.Transitional Provisions in Goods & Service Tax (GST)


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