Services Under SAC Code 997146
Commercial property insurance reinsurance services help insurers manage risks on large commercial, industrial and institutional properties by ceding a share of risk to reinsurers. This includes high value buildings, warehouses, plants and commercial complexes exposed to fire and other perils. Under GST, these commercial property reinsurance services are classified under SAC 997146. This SAC code and its GST rate decide how GST is applied on property reinsurance premiums and recoveries between insurers and reinsurers.
Services GST Rate for SAC Code 997146
Reinsurance services under these SAC codes are treated as financial and insurance related services under GST. The taxable value usually covers reinsurance premium, any service fees and commission adjustments charged between insurers and reinsurers, whereas pure claim payouts under reinsurance contracts are treated separately as indemnity and not as service consideration.
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 segments may follow special valuation or rate notifications, so insurers and reinsurers should review those conditions carefully before deciding the final GST treatment.
The table below explains the prevailing GST treatment for SAC code 997146, 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 |
|---|---|---|---|---|
| 997146 | Other property reinsurance services | 18% with ITC | 18% with ITC | Property reinsurance (fire, industrial, home etc.) remains under the standard 18% rate with ITC; there is no new GST relief specifically for these contracts in the 56th Council decisions. |
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, market intermediation, insurance and reinsurance activities. Each six digit SAC within this group points to a specific type of financial, insurance or capital market service for GST classification.
Below is a list of related six-digit SAC codes under 9971.
Insurers, reinsurers, advisory firms and brokers should select the SAC that best reflects their core service, such as life reinsurance, cargo reinsurance, non life reinsurance, M&A advisory or stock brokerage services. Correct SAC selection and GST rate application in % helps maintain a clear compliance trail, supports proper input tax credit and reduces the risk of disputes during GST scrutiny.
Conclusion
Commercial property insurance reinsurance services under SAC 997146 relate to reinsurance of large commercial and industrial property risks. Taxable reinsurance service values here generally fall in the 18% GST slab with input tax credit for registered entities. Insurers and reinsurers should use SAC 997146 on reinsurance documents, apply the right GST rate in %, disclose tax separately and mirror the same treatment in GSTR 1 and GSTR 3B.
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.