--- title: "Deposit Services | Professional Deposit Solutions" description: "Expert deposit services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997112." canonical: "https://busy.in/sac-code-997112/" --- # Deposit under SAC Code 997112 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). 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. ## 997112 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 997112, 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 | | --- | --- | --- | --- | --- | | 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. ## 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 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. ## Frequently asked questions ### What does SAC code 997112 cover in GST? SAC 997112 covers services related to deposit accounts such as savings, current and fixed deposits. This includes opening accounts, account maintenance, cheque book issue and similar services offered by banks. Interest on deposits is treated differently from service charges for GST purposes. ### Does SAC 997112 include savings, current and fixed deposit account services? Yes. Bank services connected to maintaining savings, current, recurring and fixed deposit accounts fall under SAC 997112. While the interest earned by customers is not subject to GST, certain charges like account maintenance fees or cheque book charges can attract GST at standard service rates. ### Which deposit related charges under SAC 997112 are taxable under GST? Service charges such as account maintenance fees, cheque book charges, SMS alerts, locker rent and some penalty charges are generally taxable at 18%. The interest paid on deposits is not subject to GST. Banks need to clearly separate taxable service charges from exempt interest incomes. ### Are interest earned on deposits covered by GST under SAC 997112? No. Interest earned on deposits is generally treated as an exempt supply for GST purposes. Customers do not pay GST on the interest they receive from savings or fixed deposits. Only specified service fees charged by banks for account services fall under GST as taxable financial services. ### Can banks claim ITC on input services related to taxable SAC 997112 charges? Banks can claim ITC on inputs used for taxable services, but they also make a lot of exempt supplies like interest. So they usually follow special rules for banking and financial services, including reversal or proportionate credit, rather than claiming full ITC on all input taxes. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [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/)