--- title: "Transaction Processing Services | Professional Transaction Processing Solutions" description: "Expert transaction processing services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997158." canonical: "https://busy.in/sac-code-997158/" --- # Transaction Processing under SAC Code 997158 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). Transaction processing services focus on securely handling financial and payment transactions for banks, NBFCs, fintech platforms and large companies. These services support payment processing, switching, authorisation and clearing so that card payments, UPI, net banking and other digital transactions move smoothly. Under GST, such transaction processing services are classified under SAC 997158. This SAC code and its GST rate decide how GST is charged on transaction processing fees and clearing house service charges raised on clients. ## 997158 SAC Code GST rate Transaction processing, financial support, insurance advisory, claims handling and actuarial services under these SAC codes are treated as financial services under GST. The taxable value normally includes processing fees, support charges, advisory retainers, commission on services and professional consulting fees received from clients, while pure statutory levies or reimbursed government charges at actuals may be kept outside the value if conditions are satisfied. 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. Where special notifications or valuation rules apply to particular insurance or forex segments, those must be reviewed before finalising the GST position on each fee component. **The table below summarises the prevailing GST treatment for SAC code 997158, highlighting the standard 18% slab for transaction processing services and any notified exceptions for specific payment products.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 997158 | Financial transactions processing and clearing house services | 18% with ITC | 18% with ITC | Current practice tables show this at 18%. References to 12% plus Nil are linked to limited sport event exemptions, not regular banking or clearing activity. No specific change for this SAC in the 56th Council press material. | Service providers using this SAC code should show service value, GST rate in % and GST amount clearly on tax invoices or statements. The same SAC and rate should be reflected in GSTR 1 and GSTR 3B so that clients can book expenses correctly, claim input tax credit where eligible and stay comfortable during GST assessments or audits. ## Practical classification guidance Banks, NBFCs, insurers, brokers and consulting firms should choose the SAC that best reflects their main activity, such as transaction processing, financial support, insurance advisory, claims services or actuarial work. Using the correct SAC and GST rate in % improves transparency, supports proper input tax credit and reduces the chance of classification disputes during GST scrutiny. ## Conclusion Transaction processing services under SAC 997158 cover secure handling of financial and payment transactions for banks, fintech platforms and large enterprises. Processing and clearing fees for these services are usually taxed at 18% with input tax credit for eligible registered clients. Service providers should classify such work under SAC 997158, apply the correct GST rate in %, show GST separately on invoices and keep GST returns aligned with this treatment. ## Frequently asked questions ### What is SAC code 997158 in GST for transaction processing services? SAC 997158 covers transaction processing and clearing services, including payment processing, card settlement, clearing house operations and similar back end payment infrastructure services. It is used by payment networks, processors and clearing entities that handle electronic payments and settlements for banks and merchants. ### Does SAC 997158 cover payment processing and clearing house services? Yes. Services like processing card payments, UPI or net banking transactions, routing authorisations, clearing inter bank payments and settling funds between participants fall under SAC 997158. These services are usually provided by specialised payment processors or clearing organisations to banks, fintechs and merchants for agreed fees ### What GST rate applies to transaction processing under SAC 997158? Transaction processing services under SAC 997158 are generally taxable at 18% under GST. GST is charged on processing fees, MDR components retained by processors, switch fees and similar charges. The underlying value of goods or services being paid for is not taxed again through this processing service. ### Should payment gateways and card processors use SAC 997158 on invoices? Yes. Payment gateways, card processors and clearing entities should use SAC 997158 on invoices to banks or merchants for processing and settlement services. This classification clearly identifies the service as transaction processing and simplifies GST compliance and ITC claims for their customers who rely on these services. ### Can banks and fintechs claim ITC on GST paid for SAC 997158 services? Banks, NBFCs and fintechs providing taxable financial or technology services can generally claim ITC on GST charged for SAC 997158 services, subject to sector specific credit rules. They need to link these costs to their taxable outputs. Entities making mainly exempt supplies may face restrictions on full credit. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [997112: Deposit](https://busy.in/sac-code-997112/) - [997113: Credit Granting](https://busy.in/sac-code-997113/) - [997114: Equipment Leasing](https://busy.in/sac-code-997114/) - [997119: Financial](https://busy.in/sac-code-997119/) - [997120: Investment Banking](https://busy.in/sac-code-997120/) - [997131: Pension](https://busy.in/sac-code-997131/) - [997132: Life Insurance](https://busy.in/sac-code-997132/) - [997133: Accident Insurance](https://busy.in/sac-code-997133/) - [997134: Motor Insurance](https://busy.in/sac-code-997134/) - [997135: Transport Insurance](https://busy.in/sac-code-997135/) - [997136: Freight Insurance](https://busy.in/sac-code-997136/) - [997137: Property Insurance](https://busy.in/sac-code-997137/) - [997139: Non Life Insurance](https://busy.in/sac-code-997139/) - [997141: Life Reinsurance](https://busy.in/sac-code-997141/) - [997142: Accident Reinsurance](https://busy.in/sac-code-997142/) - [997143: Motor Reinsurance](https://busy.in/sac-code-997143/) - [997144: Marine Reinsurance](https://busy.in/sac-code-997144/) - [997145: Cargo Insurance](https://busy.in/sac-code-997145/) - [997146: Commercial Property Insurance](https://busy.in/sac-code-997146/) - [997149: Non Life Reinsurance](https://busy.in/sac-code-997149/) - [997151: M&A Advisory](https://busy.in/sac-code-997151/) - [997152: Stock Brokerage](https://busy.in/sac-code-997152/) - [997153: Portfolio Management](https://busy.in/sac-code-997153/) - [997154: Custody](https://busy.in/sac-code-997154/) - [997155: Financial Market](https://busy.in/sac-code-997155/) - [997156: Financial Consulting](https://busy.in/sac-code-997156/) - [997157: Foreign Exchange](https://busy.in/sac-code-997157/) - [997159: Financial Support](https://busy.in/sac-code-997159/) - [997161: Insurance Advisory](https://busy.in/sac-code-997161/) - [997162: Insurance Claim](https://busy.in/sac-code-997162/) - [997163: Actuarial](https://busy.in/sac-code-997163/) - [997164: Pension Fund Management](https://busy.in/sac-code-997164/) - [997169: Insurance Support](https://busy.in/sac-code-997169/) - [997171: Holding Company](https://busy.in/sac-code-997171/) - [997172: Trust Fund Management](https://busy.in/sac-code-997172/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)