--- title: "Credit Granting Services | Professional Credit Granting Solutions" description: "Expert credit granting services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997113." canonical: "https://busy.in/sac-code-997113/" --- # Credit Granting under SAC Code 997113 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). Credit granting services cover banking and financial services related to loans, advances, credit cards and guarantees. Banks and financial institutions assess credit, disburse funds, monitor repayments and provide related support services. Under GST, such credit granting and financial support services are classified under SAC 997113. This SAC code and its GST treatment decide how GST applies on processing fees and other loan related charges, not on the interest amount. ## 997113 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 997113, 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 | | --- | --- | --- | --- | --- | | 997113 | Credit-granting services including stand-by commitment, guarantees & securities | 0% without ITC | 0% without ITC | 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. | 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 Credit granting services under SAC 997113 cover loans, advances, credit cards and related financial support. Interest on loans is usually exempt, but processing fees, annual charges and guarantee commission are typically taxed at 18 % with input tax credit for eligible borrowers. Financial institutions should split exempt interest from taxable service charges, apply SAC 997113 and the correct GST rate on those charges and reflect the same pattern in GST returns. ## Frequently asked questions ### What is SAC code 997113 in GST for credit granting services? SAC 997113 covers services related to granting credit such as loans, advances, guarantees and similar financial support. It includes activities of banks, NBFCs and other lenders when they provide credit facilities and related services like processing and documentation support. ### Does SAC 997113 cover loans, advances, guarantees and other financial support services? Yes. Services involved in giving cash credit, term loans, overdrafts, credit lines, bank guarantees and letters of credit are classified under SAC 997113. The main income from interest is treated as exempt, while certain service charges are taxable at the usual service GST rate. ### What is the GST treatment for interest and processing fees under SAC 997113? Interest on loans and advances is generally exempt from GST. However, processing fees, documentation charges, prepayment penalties and some ancillary fees are typically taxable at 18%. Lenders must clearly break out taxable charges from the exempt interest portion on their invoices and statements. ### Are bank guarantees and letter of credit charges billed using SAC 997113? Yes. Charges for issuing, amending or confirming bank guarantees and letters of credit fall under SAC 997113 and are usually taxable at 18%. These are fee based services and are not treated like interest. Customers pay GST on such charges when billed by banks or financial institutions. ### Can financial institutions claim ITC on taxable components of SAC 997113 services? Financial institutions can claim ITC only to the extent allowed under special rules for banking and financial services. Because much of their income like interest is exempt, they often need to reverse or restrict credit and may not get full ITC on all inputs used. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [997112: Deposit](https://busy.in/sac-code-997112/) - [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/)