Cargo Insurance Services Under SAC Code 997145
Life reinsurance services provide risk protection to life insurance companies rather than to direct policyholders. In a reinsurance contract, the reinsurer takes over part of the life risk portfolio from the primary insurer in return for a reinsurance premium. This helps insurers manage large sums assured and concentration risks. Under GST, such life reinsurance services are classified under SAC 997145. This SAC code and its GST treatment decide how GST applies on life reinsurance premiums.
Cargo Insurance Services GST Rate for SAC Code 997145
Life and non life reinsurance services under these codes are treated as insurance support services under GST. The taxable value is generally the reinsurance premium received by the reinsurer from the primary insurer, net of any amounts that are clearly recorded as statutory levies.
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 997145, 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 |
|---|---|---|---|---|
| 997145 | Freight reinsurance services | 18% with ITC | 18% with ITC | Reinsurance of freight-related insurance continues at 18% with ITC, unaffected by the individual life and health exemption. |
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
Life reinsurance services under SAC 997145 provide a risk back up layer for life insurers. Reinsurance premiums are usually taxable at 18 % with input tax credit for eligible counterparties, unless a specific notification grants different treatment. Life insurers and reinsurers should classify treaties correctly, apply the right GST rate in %, mention SAC 997145 on statements and align GST returns with the same pattern after checking the latest GST circulars and expert advice.
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.
Frequently Asked Questions
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What does SAC code 997145 cover in GST?
SAC 997145 covers transit and marine cargo insurance services. It applies to policies that insure goods being transported domestically or internationally against loss or damage, separate from the insurance of transport vehicles or vessels themselves.
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Does SAC 997145 include transit and marine cargo insurance policies?
Yes. Policies covering goods shipped by sea, air, road or rail are usually classified under SAC 997145. These include open policies, specific voyage policies and other cargo covers used by exporters, importers, manufacturers and traders to protect goods in transit.
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What GST rate applies to cargo insurance services under SAC 997145?
Cargo insurance premiums under SAC 997145 are generally taxable at 18% under GST. GST is charged on the premium amount for insuring the cargo, while the value of goods is not directly taxed through this service. Export related covers may still be taxable but linked to zero rated supplies.
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Should exporters and importers use SAC 997145 for shipment insurance?
Yes. When exporters or importers arrange cargo insurance and receive invoices directly from insurers, those services should show SAC 997145. This helps classify the expense clearly as cargo insurance for goods in transit and supports proper accounting and GST treatment in their books.
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Is ITC available on GST paid for SAC 997145 premiums used for business shipments?
Businesses exporting or transporting goods for taxable supplies can usually claim ITC on GST paid for cargo insurance premiums, provided shipments relate to business activities. They must hold proper GST compliant invoices from the insurer and link the policy to their taxable or zero rated outward supplies.