Accident Insurance Services Under SAC Code 997133
General insurance services provide risk cover for assets, liabilities and events such as fire, theft, accidents and business interruptions. Policyholders pay premiums and insurers pay claims when covered events occur. Under GST, such general insurance services are classified under SAC 997133. This SAC code and its GST treatment decide how GST is charged on non life insurance premiums and related fees. These covers help households and businesses manage financial impact of unexpected damage or loss.
Accident Insurance Services GST Rate for SAC Code 997133
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 997133, showing the standard 18 % slab for taxable insurance premiums and special cases where notified benefits apply.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997133 | Accident and health insurance services | 0% without ITC or 18% with ITC | 0% without ITC or 18% with ITC | Earlier, only certain government health schemes were exempt; most retail and group health / personal accident policies were taxed at 18% with ITC. From 22 Sep 2025, all individual health insurance policies (including family floater and senior citizen plans) move to 0% without ITC, while group and corporate covers continue at 18% with ITC. The code itself covers both health and accident; the practical split now depends on whether the insured is an individual (or individual + family) versus a group. |
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.
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
General insurance services under SAC 997133 cover a wide range of non life risks such as fire, theft and business interruption. Premiums on such policies are usually taxable at 18 % with input tax credit for eligible business policyholders. Insurers should map their products to SAC 997133, apply the correct GST rate in %, disclose tax clearly on invoices and ensure that GST returns mirror the same classification so that audits and assessments remain straightforward.
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.