Stock Brokerage Services Under SAC Code 997152
Motor reinsurance services provide protection to insurers who underwrite motor insurance for cars, bikes, trucks and other vehicles. The reinsurer takes a part of the motor portfolio and helps absorb large or unexpected losses from big accidents or natural disasters. This supports stable motor insurance pricing. Under GST, such motor reinsurance services are classified under SAC 997152. This SAC code and its GST treatment decide how GST applies on motor reinsurance premiums.
Stock Brokerage Services GST Rate for SAC Code 997152
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 997152, 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 |
|---|---|---|---|---|
| 997152 | Brokerage and related securities and commodities services including commodity exchange services | 18% with ITC | 18% with ITC | Stock-broking, commodity broking and related exchange services continue at 18% with ITC as general financial services. The new GST structure does not alter this category’s slab. |
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
Motor reinsurance services under SAC 997152 support insurers who write motor policies for different vehicle types. These reinsurance premiums are generally taxed at 18 % with input tax credit subject to normal rules. Motor insurers and reinsurers should use SAC 997152 for such treaties, apply the correct GST rate in %, disclose GST clearly on accounts statements and ensure that GST returns match the same classification.
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 997152 in GST for stock brokerage?
SAC 997152 covers brokerage and trading services in securities, commodities and derivatives. It includes services provided by stock brokers, commodity brokers and online trading platforms where they charge brokerage or transaction fees to clients for executing trades.
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Does SAC 997152 cover trading and brokerage in shares, commodities and derivatives?
Yes. Execution of buy and sell orders for shares, futures, options, currencies and commodities, along with related brokerage and platform fees, falls under SAC 997152. The underlying securities themselves are not subject to GST, but the service fee charged by the broker is taxable.
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What GST rate applies to brokerage charges under SAC 997152?
Brokerage and similar trading service charges are generally taxable at 18% under GST. GST is levied on the brokerage amount, exchange transaction charges and certain other fees, not on the traded value of securities. These charges appear in the contract note or trade statement issued to clients.
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Are exchange transaction charges also billed with SAC 997152?
Yes. Many charges shown on contract notes, such as exchange charges and clearing fees, are grouped with brokerage services and may be classified under SAC 997152 for GST. The overall taxable value for services is used to compute GST at the applicable rate.
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Can traders claim ITC on GST paid for SAC 997152 if used for business?
Businesses that trade in securities as part of their taxable operations, such as stock broking firms or registered traders, may claim ITC on GST paid on brokerage and related charges. For individuals investing on their own, ITC is not available since it is not a business input.