Services Under SAC Code 997154
Cargo insurance services provide cover for goods that move by road, rail, air or sea, protecting owners against loss or damage during transit. Policies can be issued for single shipments or on an open cover basis for regular movements. Businesses use cargo insurance to protect working capital tied up in goods. Under GST, such cargo insurance services are classified under SAC 997154. This SAC code and its GST treatment decide how GST applies on cargo insurance premiums.
Services GST Rate for SAC Code 997154
Cargo insurance services under this code are treated as general insurance services under GST. The taxable value usually includes the cargo insurance premium and any service charges linked to arranging transit cover, excluding separately shown government 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 997154, 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 |
|---|---|---|---|---|
| 997154 | Trust and custody services | 18% with ITC | 18% with ITC | Custody, trustee and related services linked to securities / funds are taxable at 18% with ITC both before and after 22 Sep 2025. No dedicated GST rate change has been notified for this SAC code. |
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
Cargo insurance services under SAC 997154 protect goods in transit for manufacturers, traders and logistics users. Premiums for such policies are generally taxed at 18 % with input tax credit for registered business policyholders. Insurers and intermediaries should use SAC 997154 on cargo policies, apply the correct GST rate in %, show GST as a separate line and follow the same logic in GST returns so that customers can claim input tax credit correctly and defend their position during any GST review.
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.