Services Under SAC Code 997162
Insurance claim services focus on claim handling, claims adjustment and loss assessment for insured events. Specialists validate claims, assess damage, check policy terms and help insurers decide fair settlement amounts. Under GST, such insurance claim services are classified under SAC 997162. This SAC code and its GST rate decide how GST applies on claims adjustment fees, loss assessment services and other claim related charges raised on insurers or policyholders.
Services GST Rate for SAC Code 997162
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 outlines the current GST approach for SAC code 997162, covering the typical 18% slab for insurance claim and loss assessment services and any specified exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997162 | Insurance claims adjustment services | 18% with ITC | 18% with ITC | Treated as auxiliary insurance services with a standard 18% rate in financial services rate schedules. No specific mention of a changed slab for these services in the recent GST reforms. |
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.
Below are the major related six-digit SAC codes under parent 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 claim services under SAC 997162 include claims adjustment and loss assessment work done for insurers and policyholders. Professional fees for these services are usually taxed at 18% with input tax credit for registered clients. Experts should use SAC 997162 on invoices, apply the proper GST rate in %, separate GST amounts and keep GSTR 1 and GSTR 3B consistent so that compliance stays smooth.
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.