Trust Fund Management Services Under SAC Code 997172
Trust fund management services cover the professional holding and management of securities and assets on behalf of trusts, funds and beneficiaries. Service providers handle securities holding, asset holding, record keeping and reporting so that assets are safeguarded and returns are tracked. Under GST, such trust fund management services are classified under SAC 997172. This SAC code and its GST rate decide how GST is applied on trust management fees and related fund administration charges.
Trust Fund Management Services GST Rate for SAC Code 997172
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 outlines the current GST approach for SAC code 997172, covering the typical 18% slab for trust fund management 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 |
|---|---|---|---|---|
| 997172 | Services of holding securities and other assets of trusts and funds and similar financial entities | 0% without ITC or 18% with ITC | 0% without ITC or 18% with ITC | Many HSN tools show a Nil rate for this code while broader SAC lists treat it under the standard 18% slab. In practice, passive holding of assets in a trust structure can be out of scope, while any separate fee based asset management or administration is taxable at 18%. There is no specific change for this SAC in the September 2025 rationalisation; the split between non supply and 18% services continues. |
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 are the major related six-digit SAC codes under parent 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
Trust fund management services under SAC 997172 cover professional holding and management of assets for trusts and funds. Management and administration fees usually attract 18% GST with input tax credit for eligible registered entities. Service providers should classify this work under SAC 997172, apply the proper GST rate in %, disclose GST separately and reflect the same classification and rate in GST returns.
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 997172 in GST for trust fund management?
This code covers professional services for managing trust funds and similar pooled assets. It includes administration, investment management, accounting, reporting and compliance services given to private trusts, charitable trusts or other funds, usually for a fixed fee or percentage based asset management charge.
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Does SAC 997172 cover professional holding and management of trust assets?
Yes. Where a trustee or professional manager holds assets on behalf of beneficiaries and manages those investments, the service is generally classified under SAC 997172. It covers day to day management, following trust deeds, executing investment decisions and maintaining proper books and records for the trust.
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What GST rate applies to trust fund management fees under SAC 997172?
Trust fund management and administration fees under SAC 997172 are usually taxed at 18%. GST is levied on the management charge billed to the trust or sponsoring entity. Certain specific charitable or religious trusts may enjoy special exemptions, so one must always check the latest notifications
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Should trustees use SAC 997172 when billing for investment management?
Yes. Professional trustees and fund managers who bill for managing trust investments should generally use SAC 997172 on their invoices. This clearly shows that the service is trust or fund management, helping both sides account for GST correctly and identify whether any sector specific exemption applies.
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Can trusts or sponsors claim ITC on GST paid for SAC 997172 services where eligible?
Business related or commercial trusts that make taxable supplies may be able to claim ITC on GST paid for SAC 997172 services. Purely charitable or personal family trusts usually cannot claim ITC. Eligibility depends on registration status, nature of outputs and how the trust uses these services.