Central Banking Services Under SAC Code 997111
Central banking services cover core functions of a central monetary authority such as currency management, settlement systems and regulation of the banking system. These services support financial stability and smooth payment operations in the economy. Under GST, central banking and monetary authority services are classified under SAC 997111. This SAC code and its GST treatment decide how GST applies on any taxable fees charged by the monetary authority.
Central Banking Services GST Rate for SAC Code 997111
Central banking, deposit and credit granting services under these codes are treated as financial services under GST. The main taxable portion is usually service fees, processing charges and other explicit charges, while interest on loans and advances can be exempt under separate provisions.
After the September 2025 rationalisation, fee based financial services that remain taxable are generally kept in the 18 % slab with input tax credit for registered recipients. Pure interest income without an explicit service fee usually continues to enjoy exemption where notified, so banks must split taxable charges from exempt interest carefully.
The table below explains the prevailing GST treatment for SAC code 997111, highlighting the standard 18 % rate on taxable financial service charges.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997111 | Central banking services | 18% with ITC | 18% with ITC | 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. |
Banks and financial institutions should map each charge such as processing fees, annual fees, locker rent or guarantee commission to the correct SAC, apply the proper GST rate in % and show the tax amount clearly on statements. The same SAC and rate should be used in GSTR 1 and GSTR 3B so that customers can claim input tax credit correctly and GST audits remain smooth.
Explore Other SAC Codes Under 9971
These SAC codes sit inside the financial services group 9971, which covers central banking, deposit services, credit granting and other core financial intermediation services. Each six digit SAC identifies a specific set of financial activities for GST reporting.
The list below highlights key six-digit SAC codes under 9971
Banks, NBFCs and other financial institutions should map each product to the correct SAC, distinguishing between taxable fee based services and exempt interest income. Correct SAC selection and GST rate application in % reduce disputes, help customers claim input tax credit on eligible charges and keep GST returns easier to justify during audits.
Conclusion
Central banking services under SAC 997111 cover core activities of the monetary authority that support the banking and payment system. Most routine regulatory and sovereign functions may sit outside the normal GST tax base, while any separately charged taxable services can attract 18 % with input tax credit for eligible recipients. The monetary authority should track which activities are taxable, apply the correct SAC and rate on any fee based services and keep GST reporting aligned with current law.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.