Foreign Exchange Services Under SAC Code 997157
Foreign exchange services deal with buying and selling foreign currency for travel, trade and investment purposes. Banks, authorised dealers and forex service providers handle currency exchange, forex services and sometimes basic foreign exchange trading support for clients. Under GST, such foreign exchange services are classified under SAC 997157. This SAC code and its GST rate decide how GST is charged on currency exchange margins, service fees and related forex service charges.
Foreign Exchange Services GST Rate for SAC Code 997157
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 outlines the prevailing GST treatment for SAC code 997157, showing the common 18% slab for foreign exchange services and any special rules notified for certain forex transactions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997157 | Foreign exchange services | 18% with ITC | 18% with ITC | Standard GST rate for forex related services is 18% under 9971 in current rate compilations. 56th Council decisions on GST 2.0 do not list any change for this SAC, so the slab continues at 18%. |
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.
Explore Other SAC Codes Under 9971
These SAC codes fall under the financial and insurance services group 9971, which covers banking, investment, insurance, reinsurance and capital market related activities. Each six digit SAC within this group points to a specific type of financial or market service for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9971.
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
Foreign exchange services under SAC 997157 deal with currency exchange and related forex support for travel, trade and investment. Service margins and fees for these activities are generally taxed at 18% with input tax credit for eligible registered clients, subject to forex specific valuation rules. Service providers should use SAC 997157 on invoices, apply the proper GST rate in %, show GST amounts clearly and ensure that GSTR 1 and GSTR 3B reflect the same position.
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 does SAC code 997157 cover in GST?
SAC 997157 covers foreign exchange services, including currency conversion, forex trading facilitation and related support. It is used by banks, money changers and forex dealers when they provide services like converting currencies, arranging forex deals or charging margins and commissions on foreign exchange transactions for clients.
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Does SAC 997157 include forex trading, currency exchange and related services?
Yes. Currency sale and purchase at counters, forex cards, traveller cheques, and facilitating forex trades, along with related service charges, margins or commissions, are classified under SAC 997157. The face value of currency itself is not taxed, but the service or markup component is subject to GST.
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What GST rate applies to foreign exchange services under SAC 997157?
Foreign exchange services are generally taxed at 18%, although a special valuation mechanism often applies for forex conversion. GST may be calculated on a prescribed percentage of the gross amount exchanged or difference, as per rules, rather than on simple service fee alone, depending on transaction type.
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Are markup and service charges on currency conversion billed using SAC 997157?
Yes. Margins, service charges and markups charged for buying or selling foreign currency, loading forex cards or similar services are billed under SAC 997157. The invoice or receipt should show the taxable value as per the special valuation rules and apply GST at the applicable service rate.
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Can exporters and businesses claim ITC on GST paid for SAC 997157 services?
Businesses using forex services for exports, imports or other taxable business activities can usually claim ITC on GST paid on forex service charges, subject to conditions. They must keep proper documents showing that the forex transactions relate to business activities and not personal travel or non business spending.