Financial Consulting Under SAC Code 997156

Financial consulting services help businesses and investors plan their investments, funding and overall financial strategy. Consultants provide investment advisory, business financial planning and capital structure guidance so that money decisions are more informed and future ready. Under GST, these financial consulting services are classified under SAC 997156. This SAC code and its GST rate decide how GST applies on financial consulting retainers, project fees and advisory charges.

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997156 SAC Code GST Rate

Review old and new GST rates for Financial Consulting under 997156 SAC Code.

Portfolio, custody, financial market, consulting and foreign exchange related services under these SAC codes are treated as financial services under GST. The taxable value normally includes service fees, brokerage, management charges, advisory retainers and other consideration received from clients, while pure statutory levies collected at actuals for exchanges or regulators are kept outside the value if conditions are met.

After the September 2025 rationalisation, most taxable financial service components that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered clients. Certain capital market and forex transactions may be guided by special valuation rules or notifications, so these should be reviewed carefully before freezing the GST position.

The table below sets out the current GST treatment for SAC code 997156, covering the standard 18% slab for financial consulting services and any notified variations for specific consulting structures.

SAC Code

997156

Description

Financial consultancy services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Classified under financial services; multiple independent HSN rate tools show 18% as the operative rate. Historic concessional entries for specific sports events do not alter the general rate. No change notified in the September 2025 rationalisation.

Service providers using this SAC code should clearly show service value, GST rate in % and GST amount on tax invoices or statements. The same SAC and rate should be followed in GSTR 1 and GSTR 3B so that clients can book expenses correctly, claim input tax credit where eligible and remain comfortable during GST assessments.

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Practical Classification Guidance

Banks, NBFCs, brokers and advisory firms should choose the SAC that best describes their core offering, whether it is portfolio management, custody, financial market operations, financial consulting or foreign exchange services. Using the correct SAC and GST rate in % makes billing transparent, supports proper input tax credit and reduces disputes during GST scrutiny.

Conclusion

Financial consulting services under SAC 997156 cover investment advisory and business financial planning support for individuals and enterprises. Consulting fees here usually fall in the 18% GST slab with input tax credit for registered business clients. Consultants should classify their work under SAC 997156, apply the correct GST rate in %, separate GST on invoices and maintain the same treatment in GST returns.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997156 and GST compliance.

What is SAC code 997156 in GST for financial consulting?

SAC 997156 covers financial consulting and advisory services, including investment planning, business financial planning, capital structure advice and related consultancy. It is used when professionals or firms provide fee based financial guidance that is not directly classified as portfolio management, stock broking or standard loan services.

Does SAC 997156 cover investment advisory and business financial planning services?

 Yes. Independent financial advisors, wealth planners and consultants who help clients plan investments, manage finances, evaluate funding options or design financial strategies can use SAC 997156. The key aspect is that they provide advice and analysis, not direct execution of trades or loans, for a consulting fee.

What GST rate applies to financial consulting fees under SAC 997156?

Financial consulting services under SAC 997156 are usually taxed at the standard GST rate of 18%. GST is levied on advisory or consulting fees shown in invoices. Interest income or pure securities transactions are treated differently, but the consultancy element itself is generally a fully taxable service.

Should SEBI-registered investment advisors use SAC 997156 on invoices?

Yes. SEBI registered investment advisors who charge clients direct advisory fees rather than brokerage commissions typically use SAC 997156 on their GST invoices. This helps clearly classify their work as financial consulting and ensures correct GST treatment for both the advisor and the client claiming input tax credit.

Can businesses claim ITC on GST paid for SAC 997156 services?

Businesses using financial consulting for decisions like fund raising, restructuring or investment planning for taxable activities can usually claim ITC on GST paid under SAC 997156. They should keep engagement letters and GST invoices and ensure the advice relates to their business, not purely personal investments of owners.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.