Holding Company Under SAC Code 997171

Holding company services relate to owning and managing equity stakes in subsidiary or group companies. Holding entities provide corporate ownership, oversight and sometimes strategic direction without directly running day to day operations. Under GST, such holding company services are classified under SAC 997171. This SAC code and its GST rate decide how GST is charged on management fees and other consideration raised by holding companies for services provided to their subsidiaries or related entities.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.6 Google Rating
+91
expand_more

* No credit card required

997171 SAC Code GST Rate

Review old and new GST rates for Holding Company under 997171 SAC Code.

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 sets out the prevailing GST treatment for SAC code 997171, showing the standard 18% slab for holding company services and any notified variations that may apply.

SAC Code

997171

Description

Services of holding equity of subsidiary companies

New Rate

0 %
Exempted

Old Rate

0 %

Notes

Case law and specialised commentary indicate that simple passive holding of subsidiary shares for control is not treated as a supply and therefore has no GST. Where a holding company provides additional chargeable services (for example centralised management for a fee), those parts are taxable at 18%. The 56th Council did not change this position; practical treatment remains a mix of non supply and 18% for separately invoiced services.

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.

Stop worrying about SAC & GST compliance

BUSY auto-applies the correct SAC codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91
expand_more

* No credit card required

Explore More SAC Codes Under 9971

Practical Classification Guidance

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

Holding company services under SAC 997171 cover ownership and oversight of subsidiary companies and investments. Management and oversight fees here are typically taxed at 18% with input tax credit for eligible group entities. Holding companies should classify such charges under SAC 997171, apply the correct GST rate in %, show GST separately and maintain the same position in GST returns so that their input tax credit trail stays clear.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997171 and GST compliance.

What does SAC code 997171 cover in GST?

This code covers services where a holding or parent company manages and controls its group companies. It includes strategic control, group level decision making, supervision, and support services given to subsidiaries in return for a management fee or recharge of common group costs.

Does SAC 997171 include services related to holding and managing equity in subsidiaries?

Yes. When a company holds shares in subsidiaries and also provides management, control and coordination services to them, those services are usually classified under SAC 997171. Pure investment without any management activity is different. GST applies on the management or support fee, not on the shareholding itself.

What GST rate applies to management and support fees under SAC 997171?

Management and support fees charged under SAC 997171 are normally taxed at 18%. GST is levied on the value of the service charged by the holding company to its subsidiaries. Proper tax invoices and clear documentation are needed to support the valuation and nature of services.

Should a parent company charging group management fees use SAC 997171?

Yes. When a parent company raises invoices on subsidiaries for management support, strategic control, CFO support or shared services, it should generally use SAC 997171. This helps show that it is providing taxable services within the group, and GST must be charged on the management fee.

Can holding companies claim ITC on GST paid for SAC 997171 services used for business?

If the holding company is registered and provides taxable services to group entities, it can usually claim ITC on eligible inputs like professional fees, software and office costs. These inputs must relate to its taxable management services. ITC on pure investment activity is normally not available.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.