Actuarial Services Under SAC Code 997163
Actuarial services provide expert risk assessment and financial modelling support for insurers, pension funds and large businesses. Actuaries work on risk assessment services, premium and reserve calculations, pricing of products and long term liability estimates using statistical models. Under GST, such actuarial services are classified under SAC 997163. This SAC code and its GST rate decide how GST is charged on actuarial consulting fees and professional risk modelling services.
Actuarial Services GST Rate for SAC Code 997163
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 gives an overview of the GST treatment for SAC code 997163, highlighting the usual 18% slab for actuarial services and any special rules for specific actuarial engagements.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997163 | Actuarial services | 18% with ITC | 18% with ITC | Actuarial work is a specialised financial service; current Chapter 99 rate compilations list it at 18% with ITC. No rationalisation announcement targets this SAC code, so the rate is unchanged. |
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.
The list below highlights key 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
Actuarial services under SAC 997163 cover risk analysis, pricing and financial modelling for insurance, pension and other long term liability portfolios. Actuarial consulting fees generally attract 18% GST with input tax credit for eligible registered entities. Firms should classify such services under SAC 997163, apply the correct GST rate in %, disclose GST separately and maintain the same position in GST returns so that their input tax credit trail is clear.
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 997163 in GST for actuarial services?
SAC 997163 covers actuarial services, including risk assessment, pricing models, reserving calculations and financial modelling for insurers and pension funds. Actuaries use statistical and financial techniques to estimate future claims, liabilities and required reserves, helping institutions manage risk and meet regulatory requirements.
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Does SAC 997163 cover risk assessment and financial modelling for insurers?
Yes. Services like premium rating, experience analysis, solvency calculations and reserving for life, health or general insurance portfolios fall under SAC 997163. These services support insurance companies and pension schemes in setting sound prices and maintaining adequate reserves for long term obligations.
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What GST rate applies to actuarial consulting under SAC 997163?
Actuarial consulting fees under SAC 997163 are generally taxable at 18% under GST. GST is charged on professional fees billed by actuarial firms or consultants. The underlying insurance or pension products remain subject to their own GST treatment, separate from these advisory and modelling services.
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Should valuation of insurance liabilities be billed using SAC 997163?
Yes. Assignments like actuarial valuation of policy liabilities, employee benefit obligations or pension liabilities should be billed under SAC 997163. This classification matches the nature of work and helps clients identify the services as actuarial, distinct from general financial or management consulting.
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Can insurance companies claim ITC on GST paid for SAC 997163 services?
Insurance companies and pension fund managers can usually claim ITC on GST paid for actuarial services, as these are important inputs for running their regulated business. They must ensure that invoices are in the company’s name, relate to taxable outputs and comply with GST documentation requirements.