Financial Under SAC Code 997119

Other financial services cover fee based activities that do not fall under standard deposit or loan products. Examples include advisory, custodial services, arrangement fees and other specialised financial support for customers. Under GST, these miscellaneous financial services are classified under SAC 997119. This SAC code and its GST treatment decide how GST is charged on these specialised financial service fees.  These services often support complex financial decisions for both retail and corporate clients.

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997119 SAC Code GST Rate

Review old and new GST rates for Financial under 997119 SAC Code.

Equipment leasing, miscellaneous financial and investment banking services under these codes are treated as financial services under GST. The taxable part is mainly fee based income, rentals and advisory charges collected from customers, while interest like elements may have separate treatment.

After the September 2025 rationalisation, taxable financial service charges that are not specifically exempt are generally kept in the 18 % slab with input tax credit for registered recipients. Banks, leasing companies and investment banks therefore need to separate taxable fees and rentals from exempt interest components and apply GST only on the taxable portion.

The table below explains the prevailing GST treatment for SAC code 997119, highlighting the standard 18 % rate on taxable financial service charges.

SAC Code

997119

Description

Other financial services (except investment banking, insurance services and pension services)

New Rate

18 %
Standard

Old Rate

18 %

Notes

This residual bucket for financial services (forex services, transaction processing, advisory etc.) is consistently shown at 18% with ITC. No specific “from–to” change for this code appears in the 56th Council a

Financial institutions using this SAC code should clearly show processing fees, advisory charges or lease rentals on invoices, mention the GST rate in % and tax amount and reflect the same classification in GSTR 1 and GSTR 3B. This helps customers claim input tax credit correctly on eligible charges and keeps GST scrutiny smoother for both sides.

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Explore More SAC Codes Under 9971

Practical Classification Guidance

Banks, NBFCs, insurers and intermediaries should map each product to the correct SAC, checking whether the income is fee based and taxable or interest or risk cover that may have special treatment. Proper SAC selection and correct 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

Other financial services under SAC 997119 cover specialised fee based financial support that does not fit standard deposit or loan categories. These charges are normally taxable at 18 % with input tax credit for eligible customers. Financial institutions should identify such fee income clearly, apply SAC 997119 and the correct GST rate in %, and maintain consistent reporting in GST returns so that there is no confusion during audits or assessments.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997119 and GST compliance.

What is SAC code 997119 in GST for financial services?

SAC 997119 is a general code for other financial services not covered by specific categories like loans, deposits or leasing. It may include certain advisory, arrangement, or auxiliary financial services provided by NBFCs, consultants or financial firms to businesses and individuals.

Does SAC 997119 cover non banking financial advisory and consultancy services?

Yes. Many financial advisory and consultancy services relating to capital structure, funding options, risk advice and similar topics may fall under SAC 997119 when they are not classified under more specific SAC codes. These services are fee based and distinct from lending or deposit taking.

What GST rate applies to services under SAC 997119?

Most financial advisory and consultancy services under SAC 997119 are taxable at 18% under GST. The GST is charged on professional fees or advisory charges billed to clients. Interest like income and some pure securities transactions may be outside GST, but advisory fees are generally taxable.

Should NBFCs and financial advisors use SAC 997119 on invoices?

Yes, when providing advisory or auxiliary financial services that are not loans, deposits, leasing or stock broking, NBFCs and advisors can use SAC 997119. Using the correct SAC code on invoices helps clients classify the services properly and claim input tax credit where allowed.

Can clients claim ITC on GST paid for SAC 997119 services used for business?

Where businesses pay GST on financial advisory or consultancy services used for their taxable operations, they can generally claim ITC, subject to usual conditions. They should maintain tax invoices and ensure that the advisory relates to business decisions or transactions, not purely personal investments.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.