Non Life Insurance Services Under SAC Code 997139
Non life insurance services provide protection for a wide range of everyday risks that are not linked to human life, such as damage to property, vehicles, stock, machines and liability claims. Businesses and households pay premiums so that unexpected losses can be compensated as per policy terms. Under GST, such non life insurance services are classified under SAC 997139. This SAC code and its GST treatment decide how GST is charged on these risk insurance premiums and service charges.
Non Life Insurance Services GST Rate for SAC Code 997139
Non life insurance services under this code are treated as insurance services under GST. The taxable value normally includes the premium charged for covering property, liability and other non life risks, excluding any government taxes or cesses that are collected separately.
After the September 2025 rationalisation, regular taxable insurance and reinsurance premiums that are not covered by a special exemption are generally placed in the 18 % slab with input tax credit for eligible business policyholders. Selected life and health schemes or government notified programmes may continue to enjoy concessional or exempt treatment as per the latest GST notifications.
The table below explains the broad GST treatment for SAC code 997139, showing the standard 18 % slab for taxable premiums and any 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 |
|---|---|---|---|---|
| 997139 | Other non-life insurance services (excluding reinsurance services) | 18% with ITC | 18% with ITC | This residual non-life category (liability, credit, miscellaneous financial loss covers etc.) remains taxable at 18% with ITC. The September 2025 exemption is limited to individual life and health business and does not extend to these other non-life covers. |
Insurers, reinsurers and intermediaries using this SAC code should show premium, GST rate in %, GST amount and any other charges separately on documents and invoices. The same SAC and rate should be followed in GSTR 1 and GSTR 3B so that business customers can manage input tax credit properly and GST audits remain smooth.
Explore Other SAC Codes Under 9971
These SAC codes fall under the wider financial and insurance services group 9971, which covers banking, investment, life insurance, health insurance, general insurance and different types of reinsurance. Each six digit SAC in this group identifies a specific set of financial or insurance activities for GST reporting.
Below is a list of related six-digit SAC codes under 9971
Insurers, reinsurers and financial institutions should map every product or contract to the most suitable SAC, checking whether the income is a taxable fee or premium or has any special treatment. Choosing the correct SAC and applying the right GST rate in % helps avoid disputes, supports clean input tax credit flow and makes GST returns easier to explain during assessments.
Conclusion
Non life insurance services under SAC 997139 cover a wide range of covers for property, vehicles, stock and business risks. Premiums for these policies are generally taxable at 18 % with input tax credit for eligible businesses, except where a special exemption or concessional scheme applies. Insurers should apply the correct GST rate in %, disclose GST clearly on policy and renewal documents and keep consistent reporting in GST returns so that customers and authorities both have clarity on tax treatment.
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.