Mobile Recharge HSN Code

Understanding Mobile Recharge HSN Codes and GST

In today’s hyper-connected world, mobile recharge is an everyday necessity. Whether it’s topping up talk time, data, or a complete bundled plan, millions of transactions happen daily. For consumers, the key is understanding the final price, but for businesses involved in mobile services, knowing the correct HSN (Harmonized System of Nomenclature) code and GST (Goods and Services Tax) application is paramount. This can sometimes be a nuanced topic, as “mobile recharge” isn’t a physical good but a service that enables mobile phone usage.

The Mobile Recharge HSN Codes

The concept of “mobile recharge” primarily falls under the category of services, not goods. Therefore, instead of an HSN code for a tangible product, we look for a Services Accounting Code (SAC). The provided data confirms this distinction.

• Mobile Telecommunications Services (SAC 998413): This is the key classification for mobile recharge. When you perform a mobile recharge, you are essentially paying for “Mobile Telecommunications Services.” SAC codes are a system used in India to classify services for GST purposes, analogous to HSN codes for goods. The specific sub-heading for mobile telecommunications services is 998413.

It’s important to differentiate this from physical goods that might be part of the mobile ecosystem:

• Mobile Phones (HSN 8517):
  • Telephone Sets, Including Telephones For Cellular Networks Or For Other Wireless Networks: This general heading (8517) covers mobile phones.
  • Mobile Phone, Push Button Type (85171219): A specific HSN for feature phones. While these are goods, they are separate from the “recharge” service.
• Recorded Media (HSN 85235210): “Discs, Tapes, Solid-State Non-Volatile Storage Devices, Smart Cards And Other Media For The Recording Of Sound Or Of Other Phenomena.” This HSN code relates to physical media and is not directly for mobile recharge services.

Other HSN codes in the provided data refer to “Mobile Lifting Frames,” “Mobile Workshops,” or “Special Purpose Motor Vehicles” (under Chapters 84 and 87). These are industrial or specialized vehicles and have no relation to mobile phone recharge.

The GST Rates for Mobile Recharge

The GST treatment for mobile telecommunication services has a specific provision, which makes it unique.

• Nil GST Rate (0%) with specific conditions:
  • Mobile Telecommunications Services (SAC 998413): The data indicates a “Nil” GST rate, but with a crucial “Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020.”

This specific condition means that generally, mobile telecommunications services (and thus mobile recharge) are subject to a standard GST rate in India, which has historically been 18%. The “Nil” rate indicated in the data is a conditional exemption that was likely introduced for a specific event (FIFA U-17 Women’s World Cup 2020) to promote or facilitate it.

Therefore, for general mobile recharges in India, the applicable GST rate is typically 18%. The provided data highlights a specific, temporary exemption, not the general rule. Businesses and consumers should be aware that the standard rate applies in most circumstances.

The effective date for this conditional Nil rate was July 27, 2018. For other items listed:

• Mobile Phones: The GST rate for mobile phones (HSN 8517 and its sub-headings) was 18%, with effective dates ranging from July 1, 2017, to April 1, 2020 (indicating possible revisions over time).
• Recorded Media (e.g., Smart Cards): HSN 85235210 has an 18% GST rate, effective from July 1, 2017.
• Mobile Cranes/Lifting Frames/Special Purpose Vehicles: These heavy machinery and vehicles typically attract an 18% GST rate.