9971 SAC Code: Financial & related services

Description

Services by the Reserve Bank of India.

Notes

Statutory functions and services provided by RBI are covered under the exemption list. No rate or slab change under GST 2.0.

Description

Services by way of: (a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services); (b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers.

Notes

Interest or discount on loans, advances and deposits (other than credit card interest) and inter se sale or purchase of foreign currency among banks or authorised dealers remain exempt. Only fee or service charges outside this entry are taxable.

Description

Services of life insurance business provided by way of annuity under the National Pension System regulated by the Pension Fund Regulatory and Development Authority of India under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013).

Notes

Annuity payments under NPS are specifically exempt as part of pension sector reliefs. The 56th Council rate rationalisation does not disturb this exemption.

Description

Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government.

Notes

Group insurance schemes for armed forces personnel run through the respective Group Insurance Funds are exempt to support defence welfare. No change under the new slab structure.

Description

Services by the EmployeesÕ State Insurance Corporation to persons governed under the EmployeesÕ State Insurance Act, 1948 (34 of 1948).

Notes

ESIC health cover and related services to insured persons are exempt as social security services. Treatment remains the same in GST 2.0.

Description

Services provided by the Employees Provident Fund Organisation to the persons governed under the Employees Provident Funds and the Miscellaneous Provisions Act, 1952 (19 of 1952).

Notes

Statutory services by EPFO to members covered under the EPF legislation are exempt. There is no rate rationalisation impact here. Supplies remain outside tax, and ITC related to these exempt services is not available.

Description

Services provided by the Insurance Regulatory and the Development Authority of India to insurers under the Insurance Regulatory and the Development Authority of India Act, 1999 (41 of 1999)

Notes

Regulatory services provided by IRDAI to insurers are exempt as sovereign or regulatory functions. There is no change in GST 2.0; the exemption continues in the same form.

Description

Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market.

Notes

Fees charged by SEBI for its core regulatory functions are exempt as public regulatory services. No movement to 5% or 18% slabs in the 2025 changes.

Description

Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service. Explanation.Ñ For the purposes of this entry, Òacquiring bankÓ means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.

Notes

Merchant discount rate (MDR) or similar fees charged by acquiring banks on card transactions up to ₹2,000 in a single swipe are exempt to promote small digital payments. This specific threshold based exemption continues.

Description

Services of general insurance business provided under following schemes Ð (a) Hut Insurance Scheme; (b) Cattle Insurance under Swarnajayanti Gram Swarozgar Yojana (earlier known as Integrated Rural Development Programme); (c) Scheme for Insurance of Tribals; (d) Janata Personal Accident Policy and Gramin Accident Policy; (e) Group Personal Accident Policy for Self-Employed Women; (f) Agricultural Pumpset and Failed Well Insurance; (g) premia collected on export credit insurance; (h)( Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme) substituted by [“Restructured Weather Based Crop Insurance Scheme (RWCIS)] on 22/08/2017, approved by the Government of India and implemented by the Ministry of Agriculture; (i) Jan Arogya Bima Policy; (j) [National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);] substituted by [Pradhan Mantri Fasal Bima Yojana (PMFBY)] on 22/08/2017 (k) Pilot Scheme on Seed Crop Insurance; (l) Central Sector Scheme on Cattle Insurance; (m) Universal Health Insurance Scheme; (n) Rashtriya Swasthya Bima Yojana; (o) Coconut Palm Insurance Scheme; (p) Pradhan Mantri Suraksha Bima Yojana; (q) Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).

Notes

Premiums under the listed social and government general insurance schemes (crop, cattle, health, accident and similar schemes in your description) are fully exempt. No rate change under GST 2.0.

Description

Services of life insurance business provided under following schemes- (a) Janashree Bima Yojana; (b) Aam Aadmi Bima Yojana; (c) Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of 50000 rupee(2 lakh substituted from 25/01/2018); (d) Varishtha Pension BimaYojana; (e) Pradhan Mantri Jeevan JyotiBimaYojana; (f) Pradhan Mantri Jan DhanYogana; (g) Pradhan Mantri Vaya Vandan Yojana.

Notes

Life insurance for low income, senior citizen and other notified groups under these schemes is exempt. The later increase in micro insurance cover limit does not change the exemption itself.

Description

Services by way of reinsurance of the insurance schemes specified in exemption list(Sl no 35 or 36 or 40 of Notification no 12/2017)

Notes

Reinsurance of insurance policies that are themselves exempt under the specified entries is also exempt. GST 2.0 keeps this matching treatment unchanged.

Description

Services by an intermediary of financial services located in a multi services SEZ with International Financial Services Centre (IFSC) status to a customer located outside India for international financial services in currencies other than Indian rupees (INR). Explanation.- For the purposes of this entry, the intermediary of financial services in IFSC is a person,- (i) who is permitted or recognised as such by the Government of India or any Regulator appointed for regulation of IFSC; or (ii) who is treated as a person resident outside India under the Foreign Exchange Management (International Financial Services Centre) Regulations, 2015; or (iii) who is registered under the Insurance Regulatory and Development Authority of India (International Financial Service Centre) Guidelines, 2015 as IFSC Insurance Office; or (iv) who is permitted as such by Securities and Exchange Board of India (SEBI) under the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.

Notes

These are specialised IFSC intermediary services to overseas clients and are treated as exempt / effectively zero rated under the notified entry. For your SAC table, you can show 0% and explain eligibility as IFSC and export service in the content.

Description

Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948).

Notes

Provident fund related services by CMPFO to covered members are exempt as social security and retirement benefit administration services. No change under the new slab framework.

Description

Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.

Notes

NPS Trust administrative fees charged to members are exempt as part of notified pension related services. This exemption continues after 22 Sep 2025.

Description

Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings(PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.

Notes

Guarantees given by Central, State or UT Governments to their undertakings or PSUs for loans from financial institutions are covered by a specific exemption entry. Under the rate rationalisation, this line is not shifted to 18%, so you can continue to treat it as 0% in your SAC table.

Description

Other Financial and related services

Notes

All other financial and related services that do not fall under a specific exemption (for example many fee based financial advisory or processing services) are taxed at the standard 18% with ITC. There was no 12% band for this generic residual entry, so there is no 12% to 18% movement here.

Description

Services by way of collection of contribution under the Atal Pension Yojana.

Notes

Collection services for APY contributions are exempt to support the social pension scheme. The exemption is unchanged under GST 2.0.

Description

Services by way of collection of contributions under any pension scheme of the State Governments.

Notes

Similar exemption as APY, but for State Government pension schemes. Collection services are exempt and continue to be treated at 0% without any slab change.

Description

Services by the following persons in respective capacities Ð (a) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch; (b) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in entry (a); or (c) business facilitator or a business correspondent to an insurance company in a rural area.

Notes

Business facilitator and business correspondent services in rural areas, including intermediaries in that chain, are exempt to promote financial inclusion. This specific rural BF/BC exemption continues under the revised slab system.

Description

Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory.

Notes

Insurance services where the entire premium is borne by the Government under a notified scheme are exempt. This supports fully government funded social protection schemes and is not changed by the 56th Council decisions.

Description

Services of life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance Schemes of the Central Government.

Notes

Similar to the armed forces Group Insurance exemptions, life cover provided by the Naval Group Insurance Fund to Coast Guard personnel under specified Central Government schemes is exempt, with no change in the new regime.

Description

(iv) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Act, 2017. Explanation.- (a) ÒoperatorÓ means a person, organisation or enterprise engaged in or offering to engage in aircraft operations; (b) Òscheduled air transport serviceÓ means an air transport service undertaken between the same two or more places operated according to a published time table or with flights so regular or frequent that they constitute a recognisable systematic series, each flight being open to use by members of the public; (c) Òscheduled air cargo serviceÓ means air transportation of cargo or mail on a scheduled basis according to a published time table or with flights so regular or frequent that they constitute a recognisably systematic series, not open to use by passengers.

Notes

Concessional rate for leasing of aircraft to scheduled operators continues. No specific change notified in the new regime, so concessional treatment is retained.

Description

Services provided by foreman of chit fund in relation to chit Explanation.- (a) ‘chit’ means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical instalments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount; (b) Òforeman of a chit fundÓ shall have the same meaning as is assigned to the expression ÒforemanÓ in clause (j) of section 2 of the Chit Funds Act, 1982 (40 of 1982).

Notes

Treated as normal taxable financial service. No specific reduction or special slab announced, so it stays at the standard services slab.

Description

Transfer of the right to use any goods for any purpose (whether or not for a specified period)

Notes

Transfer of the right to use goods (for example machinery, equipment, vehicles) without transferring ownership is treated as a supply of service. Unless a specific notification links it to a lower rate of the underlying goods, it is generally taxed at the standard 18% with ITC. No specific 12% → 18% movement is notified for this generic entry, so 18% remains the typical rate.

Description

Any transfer of right in goods or of undivided share in goods without the transfer of title thereof

Notes

This is a general “right to use goods” entry. In practice the effective rate should track the underlying goods, but in absence of a separate concessional entry it is treated at the standard 18% services slab.

Description

Leasing of motor vehicles purchased and leased prior to 1st July 2017;

Notes

This was a transitional entry meant to avoid double taxation. Those time bound concessions have effectively run out; for any residual cases it is aligned to the standard 18% slab (no new specific change in the latest decisions).

Description

Central banking services

Notes

As a SAC, 997111 is mapped at 18% with ITC in standard rate matrices. However, services provided by the Reserve Bank of India itself are governed by a specific exemption entry and remain exempt from GST. That exemption continues; the 18% rate applies where the service is taxable and not covered by the RBI-specific exemption.

Description

Deposit services

Notes

Services by way of accepting deposits where the consideration is in the form of interest or discount are covered under the financial services exemption. That makes the typical treatment for core deposit taking 0% without ITC, both before and after 22 Sep 2025. However, fee based charges linked to deposits (account maintenance fees, penalty charges etc.) under the same SAC are taxable at 18% with ITC. Your sheet can mention this nuance in a separate note field if needed.

Description

Credit-granting services including stand-by commitment, guarantees & securities

Notes

Extending loans or advances where the consideration is interest or discount is also covered by the financial services exemption, so the typical treatment for lending and credit granting is 0% without ITC in both regimes. As with deposits, processing fees, foreclosure charges, guarantee commission and other non interest fees related to credit under this SAC are normally taxable at 18% with ITC, but those conditional cases are not reflected in the headline rate columns.

Description

Financial leasing services

Notes

Financial leasing services (for example, equipment leasing with finance element) are treated as taxable financial services at 18% with ITC in most rate references. The 56th Council’s rationalisation does not announce a separate reduced slab for this SAC, so the rate remains at 18% with ITC.

Description

Other financial services (except investment banking, insurance services and pension services)

Notes

This residual bucket for financial services (forex services, transaction processing, advisory etc.) is consistently shown at 18% with ITC. No specific “from–to” change for this code appears in the 56th Council a

Description

Investment banking services

Notes

Standard financial service under Heading 9971. No specific rate rationalisation announced for this category in the 56th Council decisions, so it continues at the general 18% service slab in the new 5 / 18 / 40 structure.

Description

pension services

Notes

Certain notified pension schemes (for example Atal Pension Yojana and specified State Government pension schemes) are exempt at 0% under existing exemption notifications, while other taxable pension services fall in the 18% slab. The 56th Council changes did not alter this pattern, so old and new rates remain effectively the same, only the overall slab framework changed.

Description

Life insurance services (excluding reinsurance services)

Notes

Before 22 Sep 2025, some specified government life insurance schemes were already exempt, but most commercial life policies were taxed at 18% with ITC. From 22 Sep 2025, all individual life insurance policies (term, ULIP, endowment etc.) are fully exempt at 0% (no ITC), while group life insurance remains taxable at 18% with ITC. This expansion of exemption is based on the 56th Council press release and subsequent government FAQs.

Description

Accident and health insurance services

Notes

Earlier, only certain government health schemes were exempt; most retail and group health / personal accident policies were taxed at 18% with ITC. From 22 Sep 2025, all individual health insurance policies (including family floater and senior citizen plans) move to 0% without ITC, while group and corporate covers continue at 18% with ITC. The code itself covers both health and accident; the practical split now depends on whether the insured is an individual (or individual + family) versus a group.

Description

Motor vehicle insurance services

Notes

General motor insurance (own damage, third-party, package policies) remains at 18% with ITC. The September 2025 rate rationalisation focused on life and health insurance, not on non-life motor insurance, so there is no specific rate change here besides the general confirmation that it stays in the 18% slab.

Description

Marine, aviation, and other transport insurance services

Notes

Marine cargo, hull, aviation and other transport insurance continue to be taxed at 18% with ITC. No dedicated relief was announced for these lines in the 56th Council outcome; they stay aligned to the standard services slab.

Description

Freight insurance services & Travel insurance services

Notes

Freight and travel insurance (trip-related covers, baggage, etc.) remain at 18% with ITC. The new 0% exemption is targeted at individual life and health insurance only, so these non-life lines are unaffected.

Description

Other property insurance services

Notes

Property insurance (fire, burglary, industrial all-risk, home insurance etc.) continues at 18% with ITC. No specific rate cut has been notified for this bucket under GST 2.0; it stays in the general 18% slab.

Description

Other non-life insurance services (excluding reinsurance services)

Notes

This residual non-life category (liability, credit, miscellaneous financial loss covers etc.) remains taxable at 18% with ITC. The September 2025 exemption is limited to individual life and health business and does not extend to these other non-life covers.

Description

Life reinsurance services

Notes

Up to 21 Sep 2025, life reinsurance attracted 18% with ITC. From 22 Sep 2025, reinsurance of individual life insurance policies becomes fully exempt at 0% without ITC, in line with the exemption for the underlying individual life policies, while reinsurance for taxable segments (for example group life) continues at 18% with ITC.

Description

Accident and health reinsurance services

Notes

Previously, reinsurance of accident and health policies was generally taxed at 18% with ITC. From 22 Sep 2025, reinsurance of individual health insurance policies (and other individual life / health segments clubbed in this code) is also exempt at 0% without ITC, while reinsurance for group or other taxable accident / health covers remains at 18% with ITC.

Description

Motor vehicle reinsurance services

Notes

Reinsurance of motor insurance business is not covered by the new individual life & health exemption, so it stays at the standard 18% with ITC before and after 22 Sep 2025.

Description

Marine, aviation and other transport reinsurance services

Notes

Marine, aviation and other transport reinsurance remains fully taxable at 18% with ITC. The September 2025 changes do not grant any special concession to these reinsurance lines.

Description

Freight reinsurance services

Notes

Reinsurance of freight-related insurance continues at 18% with ITC, unaffected by the individual life and health exemption.

Description

Other property reinsurance services

Notes

Property reinsurance (fire, industrial, home etc.) remains under the standard 18% rate with ITC; there is no new GST relief specifically for these contracts in the 56th Council decisions.

Description

Other non-life reinsurance services

Notes

Residual non-life reinsurance services continue at 18% with ITC; the exemption explicitly targets reinsurance of individual life and health policies only, not other non-life lines.

Description

Services related to investment banking such as mergers & acquisition services, corporate finance & venture capital services

Notes

These auxiliary investment banking services (M&A advisory, corporate finance, VC advisory) remain under 18% with ITC. Earlier concessional or nil rates applied only in very narrow, event-specific cases; the normal rate continues unchanged in GST 2.0.

Description

Brokerage and related securities and commodities services including commodity exchange services

Notes

Stock-broking, commodity broking and related exchange services continue at 18% with ITC as general financial services. The new GST structure does not alter this category’s slab.

Description

Portfolio management services except pension funds

Notes

Discretionary and non-discretionary portfolio management for clients is still taxed at 18% with ITC, with no specific rate relief announced in September 2025.

Description

Trust and custody services

Notes

Custody, trustee and related services linked to securities / funds are taxable at 18% with ITC both before and after 22 Sep 2025. No dedicated GST rate change has been notified for this SAC code.

Description

Services related to the administration of financial markets

Notes

Financial auxiliary service under 9971. Market practice and rate tables show 18% as the standard rate; older 12% or Nil entries apply only to very specific sports events and do not affect regular financial market administration services. No change recommended by 56th Council for this SAC.

Description

Financial consultancy services

Notes

Classified under financial services; multiple independent HSN rate tools show 18% as the operative rate. Historic concessional entries for specific sports events do not alter the general rate. No change notified in the September 2025 rationalisation.

Description

Foreign exchange services

Notes

Standard GST rate for forex related services is 18% under 9971 in current rate compilations. 56th Council decisions on GST 2.0 do not list any change for this SAC, so the slab continues at 18%.

Description

Financial transactions processing and clearing house services

Notes

Current practice tables show this at 18%. References to 12% plus Nil are linked to limited sport event exemptions, not regular banking or clearing activity. No specific change for this SAC in the 56th Council press material.

Description

Other services auxiliary to financial services

Notes

Independent rate tools consistently show 18% as the working rate. Older notifications show a Nil option only for FIFA linked supplies, which is very narrow. No change flagged in the 56th Council documentation.

Description

Insurance brokerage and agency services

Notes

Brokerage and agency services for insurance are taxed at 18% as a general rule across recent HSN rate references. From 22 Sep 2025, commissions linked to exempt individual life and health policies no longer give ITC to insurers, but the service itself still attracts 18% at the supplier level.

Description

Insurance claims adjustment services

Notes

Treated as auxiliary insurance services with a standard 18% rate in financial services rate schedules. No specific mention of a changed slab for these services in the recent GST reforms.

Description

Actuarial services

Notes

Actuarial work is a specialised financial service; current Chapter 99 rate compilations list it at 18% with ITC. No rationalisation announcement targets this SAC code, so the rate is unchanged.

Description

Pension fund management services

Notes

Management of pension funds is specifically listed at 18% in SAC rate documents. This is distinct from exemption for certain pension payouts themselves. No change has been notified in the 56th Council decisions.

Description

Other services auxiliary to insurance and pensions

Notes

Auxiliary insurance or pension support services remain in the standard service slab of 18%. Older tables that mention 12% or Nil are tied to narrow event based exemptions. No new rate or structural change has been announced for this SAC.

Description

Services of holding equity of subsidiary companies

Notes

Case law and specialised commentary indicate that simple passive holding of subsidiary shares for control is not treated as a supply and therefore has no GST. Where a holding company provides additional chargeable services (for example centralised management for a fee), those parts are taxable at 18%. The 56th Council did not change this position; practical treatment remains a mix of non supply and 18% for separately invoiced services.

Description

Services of holding securities and other assets of trusts and funds and similar financial entities

Notes

Many HSN tools show a Nil rate for this code while broader SAC lists treat it under the standard 18% slab. In practice, passive holding of assets in a trust structure can be out of scope, while any separate fee based asset management or administration is taxable at 18%. There is no specific change for this SAC in the September 2025 rationalisation; the split between non supply and 18% services continues.