Investment Banking Services Under SAC Code 997120
Investment banking services cover raising capital, managing public issues, underwriting, mergers and acquisitions and similar high value financial advisory work. Investment banks and merchant bankers help companies structure deals, comply with regulations and reach investors. Under GST, such investment banking and merchant banking services are classified under SAC 997120. This SAC code and its GST treatment decide how GST applies on advisory, underwriting and issue management fees.
Investment Banking Services GST Rate for SAC Code 997120
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 997120, 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 |
|---|---|---|---|---|
| 997120 | Investment banking services | 18% with ITC | 18% with ITC | Standard financial service under Heading 9971. No specific rate rationalisation announced for this category in the 56th Council decisions, so it continues at the general 18% service slab in the new 5 / 18 / 40 structure. |
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.
Explore Other SAC Codes Under 9971
These SAC codes sit inside the financial and insurance services group 9971, which covers central banking, deposit services, credit granting, investment banking and various life and non life insurance products. Each six digit SAC identifies a specific set of financial or insurance activities for GST reporting.
Below are the major related six-digit SAC codes under parent 9971
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
Investment banking services under SAC 997120 cover capital raising, M and A advisory, underwriting and similar high value financial services. Fees for these activities are usually taxable at 18 % with input tax credit for business clients. Investment banks and merchant bankers should map each mandate to SAC 997120, apply the proper GST rate in %, show the tax amount clearly on invoices and keep consistent treatment in GST returns, while also reviewing the latest GST guidance for any special cases.
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.