Services Under SAC Code 997151
Accident reinsurance services provide cover to insurers who issue personal accident or similar policies to retail and corporate customers. The reinsurer shares the risk of high claims arising from accidents, catastrophic events or large group covers. This helps the primary insurer keep its risk within acceptable limits. Under GST, such accident reinsurance services are classified under SAC 997151. This SAC code and its GST treatment decide how GST is charged on accident reinsurance premiums.
Services GST Rate for SAC Code 997151
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 997151, 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 |
|---|---|---|---|---|
| 997151 | Services related to investment banking such as mergers & acquisition services, corporate finance & venture capital services | 18% with ITC | 18% with ITC | These auxiliary investment banking services (M&A advisory, corporate finance, VC advisory) remain under 18% with ITC. Earlier concessional or nil rates applied only in very narrow, event-specific cases; the normal rate continues unchanged in GST 2.0. |
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
Accident reinsurance services under SAC 997151 help insurers manage large accident and catastrophe risks in personal accident or similar portfolios. Reinsurance premiums are typically taxable at 18 % with input tax credit where permitted. Insurers and reinsurers should document treaty terms clearly, apply the proper GST rate in %, show tax separately and maintain consistent treatment in GST returns to support smooth compliance and reconciliation.
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.