Insurance Advisory Services Under SAC Code 997161
Insurance advisory services help individuals and businesses choose the right insurance cover by explaining policy options, terms, premiums and claim processes. Insurance brokers, advisors and insurance agent services guide clients across life, health, motor and other policies so that risks are covered properly. Under GST, such insurance advisory services are classified under SAC 997161. This SAC code and its GST rate decide how GST is charged on insurance advisory, brokerage and related service fees.
Insurance Advisory Services GST Rate for SAC Code 997161
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 sets out the prevailing GST treatment for SAC code 997161, showing the standard 18% slab for insurance advisory and brokerage services and any notified variations that may apply.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997161 | Insurance brokerage and agency services | 18% with ITC | 18% with ITC | Brokerage and agency services for insurance are taxed at 18% as a general rule across recent HSN rate references. From 22 Sep 2025, commissions linked to exempt individual life and health policies no longer give ITC to insurers, but the service itself still attracts 18% at the supplier level. |
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.
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 a wide set of allied financial services. Each six digit SAC within this group identifies a specific financial, insurance or support service for GST classification and reporting.
These are the main related six-digit SAC codes under 9971.
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
Insurance advisory services under SAC 997161 cover brokerage, advisory and agent support for choosing policies across life, health, motor and other risks. Advisory and brokerage fees are typically taxed at 18% with input tax credit for eligible recipients, subject to sector specific rules. Service providers should classify such work under SAC 997161, apply the correct GST rate in %, show GST clearly and reflect the same treatment in GST returns.
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 is SAC code 997161 in GST for insurance advisory?
SAC 997161 covers insurance advisory, broking and agency services. It applies to intermediaries who advise clients on insurance products, arrange policies with insurers and earn commission or fees for placing and servicing insurance business, without themselves acting as the primary insurer.
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Does SAC 997161 cover insurance broker and agent advisory services?
Yes. Services of insurance brokers and agents who recommend suitable policies, help complete proposals, assist in renewals and act as a link between insurer and customer are classified under SAC 997161. Their income is usually commission or brokerage rather than premium, and GST applies on that income.
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What GST rate applies to insurance advisory commissions under SAC 997161?
Commission and fees earned by insurance intermediaries under SAC 997161 are generally taxable at 18% under GST. GST is applied on the commission amount or advisory fee received from the insurer or client. The underlying insurance premium remains subject to GST according to separate rules for insurance services.
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Should policy sales and renewal advice use SAC 997161 on invoices?
Yes. When brokers or corporate agents raise invoices for advisory or service fees, they should use SAC 997161. Some commission flows may be accounted through insurer statements rather than separate invoices, but the classification remains the same for GST reporting as insurance advisory and broking services.
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Can agencies claim ITC on GST paid for SAC 997161 input services?
Insurance intermediaries can usually claim ITC on GST paid for input services like office rent, professional services and marketing used for their taxable commission business. They must meet general ITC conditions, keep proper tax invoices, and ensure such costs are linked to their taxable insurance advisory activities.