Transport Insurance Under SAC Code 997135

Marine, aviation and transport insurance services cover risk related to ships, aircraft, cargo and transport movements. These policies protect against damage, loss or liability during transit by sea, air or other modes. Under GST, such marine, aviation and transport insurance services are classified under SAC 997135. This SAC code and its GST treatment decide how GST is charged on these specialised insurance premiums and service fees.

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997135 SAC Code GST Rate

Review old and new GST rates for Transport Insurance under 997135 SAC Code.

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 997135, showing the standard 18 % slab for taxable insurance premiums and special cases where notified benefits apply.

SAC Code

997135

Description

Marine, aviation, and other transport insurance services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Marine cargo, hull, aviation and other transport insurance continue to be taxed at 18% with ITC. No dedicated relief was announced for these lines in the 56th Council outcome; they stay aligned to the standard services slab.

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.

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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

Marine, aviation and transport insurance services under SAC 997135 cover complex transit and asset risks. Premiums on these specialised policies are typically taxable at 18 % with input tax credit for eligible business policyholders. Insurers should classify policies under SAC 997135, apply the correct GST rate in %, state GST amounts clearly in documentation and align GST returns with the same treatment, taking professional advice for cross border or multi jurisdiction cases where needed.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997135 and GST compliance.

What does SAC code 997135 cover in GST?

SAC 997135 covers transport related insurance services such as marine, aviation and other transport insurance. It includes policies covering ships, aircraft and certain transport operations, other than the pure cargo transit covers which may have separate specific SAC classifications.

Does SAC 997135 include marine, aviation and other transport related insurance?

Yes. Hull insurance for ships, aircraft hull insurance, and some broader transport risk covers often fall under SAC 997135. These policies insure the vehicle or craft itself, not just the goods being carried. They protect owners and operators from damage or loss to their transport assets.

What GST rate applies to transport insurance services under SAC 997135?

Transport related insurance services under SAC 997135 are usually taxable at 18% on the premium component. GST is charged on the insurance premiums billed to ship owners, airlines or transport operators, and insurers remit this tax as part of their non life insurance service output.

Are cargo and hull policies billed using SAC 997135?

Hull and some related transport asset policies use SAC 997135. Pure marine or transit cargo policies may be classified under more specific cargo insurance SAC codes. Insurers decide the exact SAC based on whether the policy insures the transport vehicle, the cargo, or both under different sections

Can exporters claim ITC on GST paid for SAC 997135 premiums used for business?

Exporters and transport operators can usually claim ITC on GST charged for such insurance if the policy relates to their taxable or zero rated business activities. They must ensure the insurance protects business assets and maintain proper GST compliant invoices for claiming credit.

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.