--- title: "Central Banking Services | Professional Central Banking Solutions" description: "Expert central banking services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997111." canonical: "https://busy.in/sac-code-997111/" --- # Central Banking under SAC Code 997111 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). 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. ## 997111 SAC Code GST rate 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.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 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. ## Practical classification guidance 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. ## Frequently asked questions ### What is SAC code 997111 in GST for central banking services? SAC 997111 covers central banking services such as those provided by the Reserve Bank of India and similar authorities. These services include issuing currency, managing monetary policy and acting as banker to the government, rather than normal commercial banking services for the public. ### Does SAC 997111 cover monetary policy, currency issue and regulation by central banks? Yes. Activities like currency management, regulation of money supply and oversight of banking stability by the central bank are classified under SAC 997111. These are sovereign type functions and are not like regular banking products that are offered by commercial banks to normal customers. ### Are central banking services under SAC 997111 generally outside the scope of GST? In practice, core sovereign functions of the central bank are treated as not taxable under GST. They are either outside the scope or covered by specific exemptions. So GST is generally not charged on typical central banking activities that relate to monetary policy or currency issue. ### Do commercial banks use SAC 997111 for their regular banking services? No. Commercial banks do not use SAC 997111 for their normal services like savings accounts, loans or credit cards. They use other SAC codes under banking and financial services. SAC 997111 is mainly for central bank level activities, not for day to day retail banking. ### Is any ITC relevant for entities receiving SAC 997111 services? Usually no, because central banking services linked to sovereign functions are not charged with GST. Where there is no GST on the supply, input tax credit does not arise for the recipient. Regular ITC concepts apply only where GST is actually charged on a taxable service. ## Explore more ### Other SAC services under 9971 - [997112: Deposit](https://busy.in/sac-code-997112/) - [997113: Credit Granting](https://busy.in/sac-code-997113/) - [997114: Equipment Leasing](https://busy.in/sac-code-997114/) - [997119: Financial](https://busy.in/sac-code-997119/) - [997120: Investment Banking](https://busy.in/sac-code-997120/) - [997131: Pension](https://busy.in/sac-code-997131/) - [997132: Life Insurance](https://busy.in/sac-code-997132/) - [997133: Accident Insurance](https://busy.in/sac-code-997133/) - [997134: Motor Insurance](https://busy.in/sac-code-997134/) - [997135: Transport Insurance](https://busy.in/sac-code-997135/) - [997136: Freight Insurance](https://busy.in/sac-code-997136/) - [997137: Property Insurance](https://busy.in/sac-code-997137/) - [997139: Non Life Insurance](https://busy.in/sac-code-997139/) - [997141: Life Reinsurance](https://busy.in/sac-code-997141/) - [997142: Accident Reinsurance](https://busy.in/sac-code-997142/) - [997143: Motor Reinsurance](https://busy.in/sac-code-997143/) - [997144: Marine Reinsurance](https://busy.in/sac-code-997144/) - [997145: Cargo Insurance](https://busy.in/sac-code-997145/) - [997146: Commercial Property Insurance](https://busy.in/sac-code-997146/) - [997149: Non Life Reinsurance](https://busy.in/sac-code-997149/) - [997151: M&A Advisory](https://busy.in/sac-code-997151/) - [997152: Stock Brokerage](https://busy.in/sac-code-997152/) - [997153: Portfolio Management](https://busy.in/sac-code-997153/) - [997154: Custody](https://busy.in/sac-code-997154/) - [997155: Financial Market](https://busy.in/sac-code-997155/) - [997156: Financial Consulting](https://busy.in/sac-code-997156/) - [997157: Foreign Exchange](https://busy.in/sac-code-997157/) - [997158: Transaction Processing](https://busy.in/sac-code-997158/) - [997159: Financial Support](https://busy.in/sac-code-997159/) - [997161: Insurance Advisory](https://busy.in/sac-code-997161/) - [997162: Insurance Claim](https://busy.in/sac-code-997162/) - [997163: Actuarial](https://busy.in/sac-code-997163/) - [997164: Pension Fund Management](https://busy.in/sac-code-997164/) - [997169: Insurance Support](https://busy.in/sac-code-997169/) - [997171: Holding Company](https://busy.in/sac-code-997171/) - [997172: Trust Fund Management](https://busy.in/sac-code-997172/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)