Deposit Services Under SAC Code 997112
Deposit services cover banking and financial services linked to savings accounts, current accounts and term deposits. Banks and financial institutions accept deposits, keep balances, provide statements and offer related value added services to customers. Under GST, such banking deposit services are classified under SAC 997112. This SAC code and its GST treatment decide how GST is charged on deposit related fees and charges, not on the deposit principal itself.
Deposit Services GST Rate for SAC Code 997112
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 997112, 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 |
|---|---|---|---|---|
| 997112 | Deposit services | 0% without ITC | 0% without ITC | 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. |
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.
These are the main related 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
Deposit services under SAC 997112 cover banking activities linked to managing public deposits. While interest on deposits generally remains exempt, fee based services like account maintenance fees, cheque book charges and SMS alerts are commonly taxed at 18 % with input tax credit for registered customers. Banks should clearly separate exempt interest from taxable charges, apply SAC 997112 on relevant fees and use the same treatment consistently in GST returns.
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.