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Insurance is classified under SAC heading 9971. GST on Insurance as on 26 October 2026: 5% or 18%. All entries under the heading: Nil, 5% or 18%.
Rates checked on 26 October 2026 · BooksOn HSN dataset v7, compiled from CBIC notifications
What is the GST rate on Insurance?
GST on Insurance as on 26 October 2026: Nil, 5% or 18%. Which rate applies depends on the exact code and on how it is sold or supplied; each entry below names the CBIC notification it comes from.
Changed with GST 2.0 (22 September 2025): 12% → 5% (9971). Many rate charts online still show the old rate. All GST 2.0 rate changes.
| Old GST rate (before 22 Sep 2025) | New GST rate | Code | What it covers | Notification |
|---|---|---|---|---|
| 12% | 5% | 9971 | Third party insurance of goods carriages (goods vehicles) has GST at 5%. | 15/2025-CT(R), entry 15(vi) |
| 18% | 18% | 9971 | Other financial and related services not covered by the items above have GST at 18%. | 3/2022-CT(R), entry 15(vii) |
| Nil | Nil | 9971 | Services by the Coal Mines Provident Fund Organisation to people covered by its Act have no GST. | 14/2018-CT(R), entry 31A |
| Nil | Nil | 9971 | Services by EPFO to people covered under the Provident Fund Act have no GST. | 12/2017-CT(R), entry 31 |
| Nil | Nil | 9971 | When the government guarantees loans that its own undertakings or PSUs take from banks and financial institutions, there is no GST. | 28/2018-CT(R), entry 34A |
| – | Nil | 9971 | When an insurer sells life insurance to an individual or a family (not a group policy), there is no GST. | 16/2025-CT(R), entry 36C |
| Nil | Nil | 9971 | Life insurance given by the Army, Navy and Air Force Group Insurance Funds to their members has no GST. | 12/2017-CT(R), entry 29 |
| Nil | Nil | 9971 | When the Naval Group Insurance Fund gives life insurance to Coast Guard staff under government group schemes, there is no GST. | 2/2018-CT(R), entry 29A |
| Nil | Nil | 9971 | General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). | 21/2019-CT(R), entry 35 |
| Nil | Nil | 9971 | When a bank serves Jan Dhan (PMJDY) basic savings account holders, there is no GST. | 28/2018-CT(R), entry 27A |
| Nil | Nil | 9971 | A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. | 12/2017-CT(R), entry 34 |
| Nil | Nil | 9971 | No GST on collecting contributions under any State Government pension scheme. | 12/2017-CT(R), entry 38 |
14 more entries, and the rate on any past date, in the free app.
The GST rate on Insurance is set by the CBIC rate notification entry for the service, and it can depend on the entry's conditions, for example who supplies the service or whether input tax credit is taken. The free BooksOn HSN app shows the rate as on any date since 1 July 2017, with the notification and entry number.
Detailed guide: GST on Insurance — today's rate, who pays (reverse charge) and every change since July 2017.
9971 Financial and related services
| Code | Description (as in the tariff) |
|---|---|
997111 | Central banking services |
997112 | Deposit services |
997113 | Credit-granting services including stand-by commitment, guarantees and securities |
997114 | Financial leasing services |
997115 | Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. |
997116 | Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. |
997119 | Other financial services (except investment banking, insurance services and pension services) |
997120 | Investment banking services |
997131 | Pension services |
997132 | Life insurance services (excluding reinsurance services) |
997133 | Accident and health insurance services |
997134 | Motor vehicle insurance services |
997135 | Marine, aviation, and other transport insurance services |
997136 | Freight insurance services and travel insurance services |
997137 | Other property insurance services |
997138 | Freight insurance services and travel insurance services |
997139 | Other non-life insurance services (excluding reinsurance services) |
997141 | Life reinsurance services |
997142 | Accident and health reinsurance services |
997143 | Motor vehicle reinsurance services |
997144 | Marine, aviation and other transport reinsurance services |
997145 | Freight reinsurance services |
997146 | Other property reinsurance services |
997147 | Other property reinsurance services |
997149 | Other non-life reinsurance services |
997151 | Services related to investment banking such as mergers and acquisition services, corporate finance and venture capital services |
997152 | Brokerage and related securities and commodities services including commodity exchange services |
997153 | Portfolio management services except pension funds |
997154 | Trust and custody services |
997155 | Services related to the administration of financial markets |
997156 | Financial consultancy services |
997157 | Foreign exchange services |
997158 | Financial transactions processing and clearing house services |
997159 | Other services auxiliary to financial services |
997161 | Services auxiliary to insurance and pensions |
997162 | Insurance claims adjustment services |
997163 | Actuarial services |
997164 | Pension fund management services |
997169 | Other services auxiliary to insurance and pensions |
997171 | Services of holding equity of subsidiary companies |
See all 41 codes on the SAC 9971 page.
Which code goes on your GST invoice?
From 1 April 2021 (Notification 78/2020-Central Tax), a business with aggregate annual turnover up to ₹5 crore must show at least 4 digits of the HSN code on B2B tax invoices; above ₹5 crore, 6 digits on all tax invoices. Services use the SAC code in the same way.
Other common items
- Hotel rooms (Lodge)
9963 - Restaurant services (Dhaba)
9963 - Salon and beauty services (Barber shop)
9997 - Renting of property
9972 - Loans and banking
9971 - Goods transport
9965 - Courier services
9968 - Construction services
9954 - Legal services
9982 - Accounting and audit
9982 - Consultancy services
9983 - Software and IT services
9983
Codes and descriptions from the BooksOn HSN dataset (version 7, 2026-10-19), compiled from the Customs Tariff and CBIC notifications. Reference only; see Sources & disclaimer.
