Services Under SAC Code 997153
Marine reinsurance services provide support to insurers who cover ships, cargo and other marine related risks. The reinsurer shares the risk of large marine losses arising from storms, collisions or other sea related events. This allows primary insurers to offer higher limits and wider covers. Under GST, such marine reinsurance services are classified under SAC 997153. This SAC code and its GST treatment decide how GST is charged on marine reinsurance premiums.
Services GST Rate for SAC Code 997153
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 997153, 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 |
|---|---|---|---|---|
| 997153 | Portfolio management services except pension funds | 18% with ITC | 18% with ITC | Discretionary and non-discretionary portfolio management for clients is still taxed at 18% with ITC, with no specific rate relief announced in September 2025. |
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
Marine reinsurance services under SAC 997153 support insurers dealing with marine hull and cargo risks. Reinsurance premiums for these contracts are usually taxable at 18 % with input tax credit for eligible businesses. Marine insurers and reinsurers should classify contracts under SAC 997153, apply the proper GST rate in %, present GST amounts clearly and keep GST returns aligned with the same treatment, especially for cross border placements.
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.