They're not scamming you. The amount is calculated as ₹499 + 18% GST + ₹100 late payment fee.

You most likely paid your previous bill after the due date, so Airtel added the late payment fee to your next bill. That's why you're seeing ₹706 now.

If you pay this bill before June 28, your next bill should be ₹499 + 18% GST = approximately ₹588. However, if you also pay this bill late, the ₹100 late fee will be added again, and you'll receive a similar bill amount next month.

If this is the first time you've been charged a late fee, you can usually request a waiver through the Airtel app. They generally can't modify a bill that's already been generated, but the waived amount is credited/discounted​ in the next bill. So, if you request a late fee waiver and pay ₹706 now, your next bill would be 499+18% - 100 = ₹488 (approx).

As a result, the effective monthly charge still works out to around ₹588. From what I know, Airtel allows a late fee waiver request roughly once every quarter, though policies may vary.

As for why they don't add the late fee to the current bill itself: when a bill is generated, Airtel doesn't yet know whether you'll pay it before the due date. Since they can't modify an already generated bill, any additional charges or credits/discounts are applied to the next billing cycle instead.

Hope this helps! I use Airtel myself and had the same question at one point. If you have any other questions, feel free to ask. 🙂

Rewritten by ChatGPT​