Property Insurance Under SAC Code 997137

Property insurance services provide cover for residential, commercial and industrial buildings against fire, natural disasters, theft and related risks. Policyholders pay premiums so that serious damage or loss to the property can be compensated as per policy terms. Under GST, such property insurance services are classified under SAC 997137. This SAC code and its GST treatment decide how GST is charged on property insurance premiums and associated fees.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.6 Google Rating
+91
expand_more

* No credit card required

997137 SAC Code GST Rate

Review old and new GST rates for Property Insurance under 997137 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 997137, showing the standard 18 % slab for taxable insurance premiums and special cases where notified benefits apply.

SAC Code

997137

Description

Other property insurance services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Property insurance (fire, burglary, industrial all-risk, home insurance etc.) continues at 18% with ITC. No specific rate cut has been notified for this bucket under GST 2.0; it stays in the general 18% 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.

Stop worrying about SAC & GST compliance

BUSY auto-applies the correct SAC codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91
expand_more

* No credit card required

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

Property insurance services under SAC 997137 cover residential and commercial buildings against events like fire, floods and other disasters. Premiums for these covers are generally taxed at 18 % with input tax credit for eligible business policyholders. Insurers should classify relevant products under SAC 997137, apply the correct GST rate in %, show tax separately on premium notices and keep consistent reporting in GST returns so that policyholders and authorities both have a clear view of GST treatment.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997137 and GST compliance.

What does SAC code 997137 cover in GST?

SAC 997137 covers insurance services for immovable property such as homes, offices, factories and warehouses. It includes policies that protect buildings and sometimes contents against risks like fire, flood, burglary, natural disasters and other specified hazards.

Does SAC 997137 include home and commercial property insurance policies?

Yes. Fire policies, building insurance and similar property covers for residential or commercial premises fall under SAC 997137. These policies may cover only the structure, only contents, or both, depending on the policy wording and terms agreed between insurer and policyholder.

What GST rate applies to property insurance services under SAC 997137?

Property insurance premiums are normally taxed at 18% under GST. The tax is applied on the insurance premium amount, and insurers collect this from policyholders along with the base premium. The insured value of the property is not taxed, only the service component of insurance.

Are fire and burglary policies billed using SAC 997137?

Yes. Fire insurance, burglary insurance and other property related policies for buildings and contents are generally billed under SAC 997137. This classification helps differentiate these policies from motor, health or life insurance, which use their own specific SAC codes under insurance services.

Can businesses claim ITC on GST paid for SAC 997137 premiums on business assets?

Businesses insuring their commercial buildings, warehouses or plant and machinery can usually claim ITC on GST paid for such property insurance, provided the assets are used in taxable business activities. They should keep proper GST invoices from insurers and ensure no blocked credit rules apply to the asset type.

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.