Life Reinsurance Services Under SAC Code 997141
Life reinsurance services provide risk cover to life insurance companies by sharing part of their policy exposure with a reinsurer. They support sum assured management, long term protection plans and specialised life products so that insurers can write more business within safe limits. Under GST, these life reinsurance services are classified under SAC 997141. This SAC code and its GST rate decide how GST is charged on life reinsurance premiums and structured reinsurance solutions between insurers and reinsurers.
Life Reinsurance Services GST Rate for SAC Code 997141
Reinsurance services under these SAC codes are treated as financial and insurance related services under GST. The taxable value usually includes reinsurance premium, any additional service charges and commission adjustments between insurers and reinsurers, while pure claim payouts under contracts are treated separately as indemnity and not as consideration for services.
After the September 2025 rationalisation, most taxable insurance and reinsurance service components that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered recipients. Certain life insurance and reinsurance segments may follow special valuation or rate notifications, so these should be checked carefully before deciding the final GST treatment.
The table below explains the prevailing GST treatment for SAC code 997141, indicating the usual 18% slab for taxable reinsurance services and any notified exceptions that may apply.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997141 | Life reinsurance services | 18% with ITC | 0% without ITC or 18% with ITC | Up to 21 Sep 2025, life reinsurance attracted 18% with ITC. From 22 Sep 2025, reinsurance of individual life insurance policies becomes fully exempt at 0% without ITC, in line with the exemption for the underlying individual life policies, while reinsurance for taxable segments (for example group life) continues at 18% with ITC. |
Insurers and reinsurers using this SAC code should clearly show reinsurance premium value, GST rate in % and GST amount on tax invoices or reinsurance statements. The same SAC and rate should be mirrored in GSTR 1 and GSTR 3B so that input tax credit can be tracked correctly and GST positions remain defendable during audits.
Explore Other SAC Codes Under 9971
These SAC codes fall under the financial and insurance services group 9971, which covers banking, financial services, direct insurance and reinsurance activities. Each six digit SAC within this group points to a specific type of financial or insurance service for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9971.
Insurers, reinsurers and financial service providers should choose the SAC that most accurately reflects the underlying service, such as life reinsurance, accident reinsurance, motor reinsurance or marine reinsurance. Correct SAC selection and GST rate application in % helps maintain a clean audit trail, supports proper input tax credit and reduces disputes during GST scrutiny or assessments.
Conclusion
Life reinsurance services under SAC 997141 help life insurers share long term policy risk with specialist reinsurers through structured treaties and facultative placements. These reinsurance premiums are usually taxed at 18% with input tax credit for eligible recipients, subject to specific insurance notifications. Insurers and reinsurers should use SAC 997141 on relevant documents, apply the correct GST rate in %, separate GST clearly and keep GST returns aligned with this 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.