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Car Insurance attracts 18% GST under SAC code 997131. Calculate the exact tax below.
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Car Insurance is classified under SAC code 997131 for GST purposes. The Services Accounting Code (SAC) is used to classify services under GST. This code must be mentioned on GST invoices when billing for car insurance.
Motor vehicle insurance attracts 18% GST since July 2017, replacing the earlier 15% service tax. This applies to comprehensive and third-party insurance.
Yes, input tax credit (ITC) is available on car insurance for registered businesses. If you purchase car insurance for business purposes, the GST paid (18%) can be claimed as ITC against your output tax liability, subject to conditions under Section 16 of the CGST Act.
Here are example calculations showing GST on car insurance at 18% for common price points:
| Base Price | GST (18%) | CGST (9%) | SGST (9%) | Total |
|---|---|---|---|---|
| ₹5,000 | ₹900 | ₹450 | ₹450 | ₹5,900 |
| ₹10,000 | ₹1,800 | ₹900 | ₹900 | ₹11,800 |
| ₹20,000 | ₹3,600 | ₹1,800 | ₹1,800 | ₹23,600 |
| ₹50,000 | ₹9,000 | ₹4,500 | ₹4,500 | ₹59,000 |
More in Vehicles:
Other items at 18% GST:
Car Insurance attracts 18% GST in India under SAC code 997131. For intra-state sales, this is split into 9% CGST and 9% SGST. For inter-state sales, 18% IGST applies.
The SAC code for Car Insurance is 997131. SAC (Services Accounting Code) is used to classify services under GST. This code should be mentioned on all GST invoices.
To add 18% GST on car insurance: GST Amount = Base Price × 18/100. Total = Base Price + GST Amount. For example, on ₹10,000: GST = ₹1,800, Total = ₹11,800.
Yes, registered businesses can claim input tax credit on car insurance purchased for business purposes. The 18% GST paid can be offset against your output GST liability, subject to Section 16 conditions of the CGST Act.
Motor vehicle insurance attracts 18% GST since July 2017, replacing the earlier 15% service tax. This applies to comprehensive and third-party insurance.