This SAC chapter applies to service providers engaged in maintenance, repair, servicing, or installation of…
SAC 9961 – Financial Services (Including Banking)
This SAC chapter applies to service providers engaged in banking, lending, financial intermediation, payment facilitation, or investment-related activities, where consideration is received in the form of interest, fees, charges, or commissions. It mainly covers services provided by banks, NBFCs, financial institutions, payment service providers, and asset managers, excluding insurance services.
| SAC | Service Classification Description | GST Rate |
|---|---|---|
| 996111 | Central banking services provided by the Reserve Bank of India in discharge of statutory and regulatory functions. | Nil |
| 996112 | Deposit-related services including savings, current, recurring, or fixed deposit accounts provided by banks or financial institutions. | Nil |
| 996113 | Lending services such as loans, advances, overdrafts, and credit facilities where consideration is represented by interest or discount. | Nil |
| 996114 | Financial leasing services, including hire-purchase arrangements, where the transaction is treated as a supply of services and not as supply of goods. | 18% |
| 996121 | Services relating to issue, trading, clearing, or settlement of securities such as shares, bonds, debentures, or similar financial instruments. | Nil |
| 996122 | Asset management, portfolio management, mutual fund management, and investment advisory services. | 18% |
| 996123 | Payment facilitation services including credit card, debit card, electronic payment processing, wallet services, and transaction handling charges. | 18% |
| 996129 | Other financial services not specifically classified elsewhere under this chapter. | 18% |
Relevant Notes (User-Helpful Only)
- Services where consideration is purely interest or discount are generally outside GST under this chapter.
- Charges such as processing fees, service charges, commissions, or facilitation fees are taxable where applicable.
- Insurance services are not covered here and are classified separately under SAC 9962.
- Classification depends on the nature of financial activity performed, not merely on the name of the institution.