Non Life Reinsurance Services Under SAC Code 997149
Non life reinsurance services provide broader reinsurance support for general insurance portfolios such as fire, engineering, liability and specialised lines. Insurers use these non life reinsurance and general reinsurance services to stabilise results, protect capital and handle risk reinsurance solutions across multiple classes. Under GST, such non life reinsurance services are classified under SAC 997149. This SAC code and its GST rate decide how GST is charged on non life reinsurance premiums and related settlements.
Non Life Reinsurance Services GST Rate for SAC Code 997149
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 997149, 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 |
|---|---|---|---|---|
| 997149 | Other non-life reinsurance services | 18% with ITC | 18% with ITC | Residual non-life reinsurance services continue at 18% with ITC; the exemption explicitly targets reinsurance of individual life and health policies only, not other non-life lines. |
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.
These are the main 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
Non life reinsurance services under SAC 997149 provide portfolio level support for general insurance lines such as fire, engineering and liability business. These reinsurance service components are normally taxed at 18% with input tax credit for eligible recipients. Companies should classify them under SAC 997149, charge GST at the correct rate in %, separate GST clearly on statements and keep GST returns aligned so that their input tax credit trail is easy to explain.
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 is SAC code 997149 in GST for non life reinsurance?
SAC 997149 is a residual code for reinsurance of other general insurance risks that are not covered by specific reinsurance SAC codes. It can include various non life reinsurance treaties across different lines combined in one broader category.
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Does SAC 997149 cover reinsurance of all general insurance lines?
Yes. When general insurers reinsure mixed portfolios or other non life risks not specifically assigned to dedicated SACs, they may classify these contracts under SAC 997149. It acts as an umbrella for other non life reinsurance services under GST.
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What GST rate applies to non life reinsurance services under SAC 997149?
Non life reinsurance services under SAC 997149 are typically taxable at 18% under GST. GST is charged on reinsurance premiums billed to ceding insurers. The tax treatment is similar to other taxable services, and normal input tax credit rules apply within the insurance sector.
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Should insurers ceding general insurance risks use SAC 997149?
Yes. For reinsurance treaties covering many general insurance lines together or not matched to specific reinsurance SACs, insurers and reinsurers can use SAC 997149. Proper classification helps in accurate GST reporting and allows separation between various types of reinsurance services.
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Can insurers claim ITC on GST paid for SAC 997149 treaties?
Insurers can generally claim ITC on GST paid for non life reinsurance services, as these are inputs supporting their taxable general insurance business. They must comply with GST documentation and return filing requirements, and track such credits as part of their overall insurance tax management.