Trust Fund Management 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.

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997172 SAC Code GST Rate

Review old and new GST rates for Trust Fund Management under 997172 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 outlines the current GST approach for SAC code 997172, covering the typical 18% slab for trust fund management services and any specified exceptions.

SAC Code

997172

Description

Services of holding securities and other assets of trusts and funds and similar financial entities

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

A trust or fund that merely holds its own securities and assets makes no supply, so no GST arises. Fees charged for holding, managing or administering assets for others are 18% with ITC. Source: Notification 11/2017-Central Tax (Rate), S. No. 15(vii).

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.

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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

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997172 and GST compliance.

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.

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.

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

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.

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.

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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.