Pension Fund Management Services Under SAC Code 997164
Pension fund management services focus on investing and monitoring pension money so that employees and investors receive stable income after retirement. Fund managers plan asset allocation, review performance and adjust portfolios to balance growth with safety over the long term. Under GST, such pension fund management services are classified under SAC 997164. This SAC code and its GST rate decide how GST is charged on pension fund management fees and related pension planning services.
Pension Fund Management Services GST Rate for SAC Code 997164
Pension fund management, insurance support, holding company and trust fund management services under these SAC codes are treated as financial services under GST. The taxable value usually includes management fees, support charges, advisory retainers and any other consideration collected from clients, while purely reimbursed statutory levies at actuals may be kept outside the value if prescribed 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. Where special notifications or valuation rules apply to pension, insurance or fund management segments, those should be reviewed carefully before finalising the GST treatment on each fee component.
The table below summarises the prevailing GST treatment for SAC code 997164, highlighting the standard 18% slab for pension fund management services and any notified exceptions for specific pension schemes.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997164 | Pension fund management services | 18% with ITC | 18% with ITC | Management of pension funds is specifically listed at 18% in SAC rate documents. This is distinct from exemption for certain pension payouts themselves. No change has been notified in the 56th Council decisions. |
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 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, pension and fund management related activities. Each six digit SAC within this group identifies a specific financial or auxiliary service for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9971.
Pension funds, insurers, holding companies and trust managers should choose the SAC that best reflects their main activity, such as pension fund management, insurance support, holding company oversight or trust fund management. 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
Pension fund management services under SAC 997164 cover long term investment and monitoring of pension money for employees and investors. Management fees for these services are usually taxed at 18% with input tax credit for eligible registered clients, subject to pension specific rules. Service providers should classify their work under SAC 997164, apply the correct GST rate in %, separate GST clearly on invoices and keep GST returns aligned with this treatment.
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 997164 cover in GST?
SAC 997164 covers management and administration services for pension and retirement funds. It includes record keeping, contribution tracking, benefit calculations, compliance, trustee support and related management services provided to pension schemes, NPS type plans and corporate retirement funds.
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Does SAC 997164 include management and administration of pension funds?
Yes. Services like maintaining member records, processing contributions and withdrawals, calculating pensions, and ensuring scheme compliance with regulations are classified under SAC 997164. Investment management linked to pension funds may also be covered here when it forms part of the overall pension fund management mandate.
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What GST rate applies to pension fund management fees under SAC 997164?
Pension fund management and administration fees under SAC 997164 are generally taxable at 18% under GST, unless a specific exemption applies for certain regulated schemes. GST is levied on the management fee or administration charge billed to the pension trust, employer or scheme sponsor.
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Are NPS or corporate pension schemes billed using SAC 997164?
Yes. Service providers managing NPS points of presence, corporate superannuation funds or other organised pension schemes usually classify their management and administration fees under SAC 997164. In some cases, parts of these services may receive special GST treatment, so providers must follow current notifications closely.
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Can employers or fund managers claim ITC on SAC 997164 services where taxable?
Where pension management services are taxable and used in relation to business operations, employers or fund managers may be able to claim ITC, subject to conditions and sector rules. However, because pensions relate to employee benefits and long term savings, ITC decisions should be taken with careful tax advice.