--- title: "Life Insurance Services | Professional Life Insurance Solutions" description: "Expert life insurance services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997132." canonical: "https://busy.in/sac-code-997132/" --- # Life Insurance under SAC Code 997132 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). Health insurance services provide cover for hospitalisation, surgeries and medical expenses for individuals and families. Policyholders pay premiums and insurers reimburse or settle claims with hospitals as per the policy terms. Under GST, such health insurance and mediclaim services are classified under SAC 997132. This SAC code and its GST treatment decide how GST applies on health insurance premiums and service charges. These policies help families manage sudden medical costs without disturbing long term savings. ## 997132 SAC Code GST rate Life, health, general and specialised insurance services under these codes are treated as insurance services under GST. In most standard policies, the premium charged to customers is subject to GST, while certain government notified schemes or social security type covers may enjoy concessional or exempt treatment. After the September 2025 rationalisation, taxable insurance premiums for regular commercial and retail policies are generally placed in the 18 % slab with input tax credit for business policyholders, subject to specific conditions. Concessional or exempt treatments for selected life and health products continue as per the latest GST notifications and circulars. **The table below explains the broad GST treatment for SAC code 997132, showing the standard 18 % slab for taxable insurance premiums and special cases where notified benefits apply.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 997132 | Life insurance services (excluding reinsurance services) | 0% without ITC or 18% with ITC | 0% without ITC or 18% with ITC | Before 22 Sep 2025, some specified government life insurance schemes were already exempt, but most commercial life policies were taxed at 18% with ITC. From 22 Sep 2025, all individual life insurance policies (term, ULIP, endowment etc.) are fully exempt at 0% (no ITC), while group life insurance remains taxable at 18% with ITC. This expansion of exemption is based on the 56th Council press release and subsequent government FAQs. | Insurers and intermediaries using this SAC code should split premium, GST and any stamp duty or other levies clearly on policy documents and invoices. They should mention the GST rate in %, use the correct SAC and ensure the same treatment is reflected in GSTR 1 and GSTR 3B so that business customers can manage input tax credit and compliance properly. ## 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 Health insurance services under SAC 997132 help families manage medical expenses. Standard retail and group health policies are generally taxable at 18 % on the premium, while certain government backed schemes may have different treatment. Insurers and intermediaries should classify products correctly, apply the right GST rate in %, show GST separately on documents and keep the same approach in GST returns to avoid disputes during scrutiny. ## Frequently asked questions ### What does SAC code 997132 cover in GST? SAC 997132 covers life insurance services, including term insurance and traditional life policies. It covers the service part of life insurance business carried on by insurers, where the premium includes both risk cover and sometimes savings or investment components. ### Does SAC 997132 include life insurance and term insurance policy services? Yes. Term policies, endowment plans and other life insurance products are classified here. Under GST, the risk cover and savings elements are treated specially. Pure term policies are generally taxable on the full premium, while traditional life policies may have only a part of premium taxable. ### Which portions of life insurance premium under SAC 997132 are taxable for GST? For many traditional policies, only a specified portion of premium is treated as taxable and GST is applied on that part as per rules, giving an effective lower rate. For pure risk term policies and some unit linked parts, GST may apply on the entire risk related premium amount. ### Are riders and additional covers billed using SAC 997132? Yes. Riders such as critical illness, accident benefits or waiver of premium added to life policies are covered under SAC 997132. GST applies to the taxable portion of premiums or charges for such riders, usually at the same service rate as main life insurance services. ### Can businesses claim ITC on GST charged on group life insurance where eligible? Input tax credit on life insurance premiums taken for employees is generally blocked, except in specific cases where law allows it, such as when providing the same service outward or where it is mandatory under law. Companies should review GST rules carefully before claiming ITC on such premiums. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [997112: Deposit](https://busy.in/sac-code-997112/) - [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/) - [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/)