Insurance HSN Code (SAC 9971) and GST Rate
Life, health and general insurance and related financial services.
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- SAC code
- 9971
- GST rate
- Exempt or 18%
- Chapter
- 99: Services (SAC)
- Before 22 Sep 2025
- 18%
What is the SAC code for insurance?
Insurance falls under SAC 9971.
Insurance is part of SAC group 9971, financial services. GST 2.0 exempted every individual life and health policy, a big change from 18%. Group health cover bought by employers and general insurance for vehicles, property and businesses remain at 18%.
| Code | Description |
|---|---|
| 9971 | Financial and related services, including insurance and pension services |
| 997131 | Life insurance services |
GST rate on insurance
The GST rate on insurance is exempt or 18%. Before 22 September 2025 it was 18%. Exempt on all individual life insurance (term, ULIP, endowment) and individual health insurance including family floater and senior citizen policies, from 22 September 2025 (18% before). 18% on group policies and general insurance such as motor and fire. Third party insurance of goods carriages is 5%.
| GST rate | Within a state | Between states |
|---|---|---|
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
Which SAC digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9971 |
| Above Rs 5 crore | 6 on every invoice | 997131 |
Sample GST invoice line for insurance
Here is how a line for insurance looks on a tax invoice within one state: 1 × motor insurance policy at Rs 24,000.00 each, taxed at 18%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Insurance | 9971 | 1 × motor insurance policy | 24,000.00 | 24,000.00 | 2,160.00 | 2,160.00 | 28,320.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 4,320.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 at a glance
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
- Works ContractSAC 9954 · 18%
- RestaurantSAC 9963 · 5%
- Hotel AccommodationSAC 9963 · 5% or 18%
- TransportationSAC 9964 and 9965 · 5% or 18%
- Taxi and CabSAC 9964 · 5% or 18%
- Air TicketSAC 9964 · 5% or 18%
- FreightSAC 9965 · 5% or 18%
- CourierSAC 9968 · 18%
- RentSAC 9972 · Exempt or 18%
- SoftwareSAC 9983 · 18%
- AdvertisingSAC 9983 · 18%
- Manpower SupplySAC 9985 · 18%
Related HSN codes
Products often bought, sold or invoiced together with insurance:
Perguntas frequentes
What is the HSN or SAC code for insurance?
Insurance falls under SAC 9971: life, health and general insurance and related financial services. Common 6 digit codes are 997131 for life insurance services.
What is the GST rate on insurance?
Exempt on all individual life insurance (term, ULIP, endowment) and individual health insurance including family floater and senior citizen policies, from 22 September 2025 (18% before). 18% on group policies and general insurance such as motor and fire. Third party insurance of goods carriages is 5%.
How many digits of the insurance SAC code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9971 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 997131, on every invoice.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.