Insurance Support Services Under SAC Code 997169
Insurance support services provide auxiliary help for insurance and pension operations, such as policy administration, data processing, call centre support and documentation follow up. These services support insurers and pension funds so that their front end policy servicing runs smoothly. Under GST, such insurance support services are classified under SAC 997169. This SAC code and its GST rate decide how GST is applied on support service charges linked to insurance and pension activities.
Insurance Support Services GST Rate for SAC Code 997169
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 explains the current GST position for SAC code 997169, indicating the usual 18% slab for insurance support services and any special cases notified by the authorities.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997169 | Other services auxiliary to insurance and pensions | 18% with ITC | 18% with ITC | Auxiliary insurance or pension support services remain in the standard service slab of 18%. Older tables that mention 12% or Nil are tied to narrow event based exemptions. No new rate or structural change has been announced for this SAC. |
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.
Below is a list of related 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
Insurance support services under SAC 997169 relate to auxiliary operational help for insurers and pension funds. Fees for these supporting services generally fall in the 18% GST slab with input tax credit for registered business clients. Firms should mark such services under SAC 997169, charge GST at the proper rate in %, disclose tax clearly and follow the same classification and rate in GSTR 1 and GSTR 3B.
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 997169 in GST for insurance support?
SAC 997169 is a residual code for other insurance and pension support services. It covers administrative, back office and operational support provided to insurers, TPAs or pension managers that is not captured under more specific SAC codes for claims, actuarial or direct management services.
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Does SAC 997169 cover administrative and back office support for insurers?
Yes. Services such as policy data entry, call centre support, document imaging, policy servicing, premium reconciliation and other non core administrative tasks for insurers or pension funds can be classified under SAC 997169. These activities support the main insurance business without being direct underwriting or claims work.
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What GST rate applies to insurance support services under SAC 997169?
Insurance and pension support services under SAC 997169 are generally taxable at 18% under GST. GST is charged on the service fees billed by outsourcing firms or shared service centres to insurers or pension managers. The value is based on contract pricing for such administrative services.
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Should policy servicing and data processing use SAC 997169 on invoices?
Yes. Vendors handling policy servicing, address updates, document scanning, bulk printing or other operational support for insurance companies should use SAC 997169. Clear classification helps both the service provider and the insurer account for GST correctly and manage input tax credits related to these support costs.
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Can insurers claim ITC on GST paid for SAC 997169 services?
Insurers and pension managers can normally claim ITC on GST paid for such support services to the extent they relate to taxable outputs. Because some insurance outputs may enjoy special treatment, companies need to follow sector specific ITC rules and maintain proper documentation for audits and compliance.