{"id":7291,"date":"2024-01-11T10:58:29","date_gmt":"2024-01-11T10:58:29","guid":{"rendered":"https:\/\/mybillbook.in\/blog\/?page_id=7291"},"modified":"2026-10-22T13:59:43","modified_gmt":"2026-10-22T13:59:43","slug":"motor-vehicle-insurance-services","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/","title":{"rendered":"SAC Code for Motor Vehicle Insurance Services"},"content":{"rendered":"\n

The SAC code for motor vehicle insurance services is 997134<\/strong>. The general GST rate is 18%<\/strong>, while third-party insurance for goods carriage vehicles attracts 5% GST<\/strong> under the revised rates effective from 22 September 2025.<\/p>\n\n\n\n

Motor vehicle insurance is classified under SAC (Services Accounting Code), not HSN, because insurance is a service. The classification covers insurance against vehicle damage, theft and third-party liability. <Cite refs={[“turn650985search24″,”turn650985search25″,”turn916366search24”]}\/><\/p>\n\n\n\n

What Is the SAC Code for Motor Vehicle Insurance Services?<\/h2>\n\n\n\n

Motor vehicle insurance falls under SAC 997134 \u2013 Motor Vehicle Insurance Services<\/strong>, within heading 9971 for financial and related services.<\/p>\n\n\n\n

Particular<\/th>Details<\/th><\/tr><\/thead>
Service<\/td>Motor vehicle insurance services<\/td><\/tr>
SAC code<\/td>997134<\/strong><\/td><\/tr>
SAC group<\/td>99713 \u2013 Insurance and pension services<\/td><\/tr>
SAC heading<\/td>9971 \u2013 Financial and related services<\/td><\/tr>
General GST rate<\/td>18%<\/strong><\/td><\/tr>
Third-party insurance for goods carriage<\/td>5%<\/strong><\/td><\/tr>
Classification type<\/td>SAC, not HSN<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

SAC 997134 covers insurance policies relating to motor vehicles, including cars, motorcycles, commercial vehicles and goods carriers.<\/p>\n\n\n\n

Types of Motor Vehicle Insurance Covered Under SAC 997134<\/h2>\n\n\n\n

The same SAC code applies to different motor insurance products, although the GST rate may differ for certain policies.<\/p>\n\n\n\n

Insurance service<\/th>Coverage<\/th>SAC code<\/th><\/tr><\/thead>
Private car insurance<\/td>Insurance against vehicle damage and third-party liability<\/td>997134<\/td><\/tr>
Two-wheeler insurance<\/td>Insurance for motorcycles and scooters<\/td>997134<\/td><\/tr>
Commercial vehicle insurance<\/td>Insurance for taxis, buses, trucks and other commercial vehicles<\/td>997134<\/td><\/tr>
Third-party motor insurance<\/td>Legal liability arising from insured vehicle use<\/td>997134<\/td><\/tr>
Comprehensive motor insurance<\/td>Own-damage and third-party coverage<\/td>997134<\/td><\/tr>
Standalone own-damage insurance<\/td>Damage or loss involving the insured vehicle<\/td>997134<\/td><\/tr>
Goods carriage motor insurance<\/td>Insurance for trucks and other goods-carrying vehicles<\/td>997134<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The applicable GST rate depends on the policy and the specific insurance service provided.<\/p>\n\n\n\n

GST Rate on Motor Vehicle Insurance Services in India<\/h2>\n\n\n\n

Most taxable motor vehicle insurance services attract 18% GST<\/strong>. However, a separate concessional rate applies to third-party insurance for goods carriage vehicles.<\/p>\n\n\n\n

Type of insurance<\/th>GST rate<\/th><\/tr><\/thead>
Private car insurance<\/td>18%<\/strong><\/td><\/tr>
Two-wheeler insurance<\/td>18%<\/strong><\/td><\/tr>
Comprehensive motor insurance<\/td>18%<\/strong><\/td><\/tr>
Standalone own-damage insurance<\/td>18%<\/strong><\/td><\/tr>
Commercial vehicle insurance, generally<\/td>18%<\/strong><\/td><\/tr>
Third-party insurance of goods carriage vehicles<\/td>5%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The GST Council’s September 2025 rate changes reduced GST on third-party insurance of goods carriage vehicles from 12% to 5%. This concession does not automatically extend to every commercial vehicle policy or comprehensive motor insurance product. <Cite ref=”turn916366search24″\/><\/p>\n\n\n\n

GST on Private Car and Two-Wheeler Insurance<\/h3>\n\n\n\n

Insurance premiums for private cars, motorcycles and scooters generally attract 18% GST.<\/p>\n\n\n\n

For example, a car owner purchasing a comprehensive insurance policy usually pays GST on the taxable premium charged by the insurer.<\/p>\n\n\n\n

For an intra-state supply, the tax is generally divided into 9% CGST and 9% SGST. For an inter-state supply, 18% IGST generally applies, subject to place-of-supply rules.<\/p>\n\n\n\n

GST on Commercial Vehicle Insurance<\/h3>\n\n\n\n

Commercial motor insurance covers vehicles used for business activities, such as taxis, buses, delivery vans and trucks.<\/p>\n\n\n\n

The general GST rate is 18% for taxable commercial motor insurance services.<\/p>\n\n\n\n

However, the specific service of third-party insurance for goods carriage vehicles attracts 5% GST under the revised rate provisions.<\/p>\n\n\n\n

GST on Third-Party Insurance for Goods Carriage Vehicles<\/h3>\n\n\n\n

Third-party insurance protects against covered legal liabilities arising from the use of an insured vehicle.<\/p>\n\n\n\n

For goods carriage vehicles, the applicable GST rate on the specified third-party insurance service is 5%<\/strong>.<\/p>\n\n\n\n

This rate should not be confused with the GST rate on comprehensive insurance or standalone own-damage insurance.<\/p>\n\n\n\n

Businesses should check the insurer’s policy schedule and premium breakup to identify the applicable tax treatment.<\/p>\n\n\n\n

GST Calculation Example for Motor Vehicle Insurance<\/h2>\n\n\n\n

Suppose a business purchases a motor insurance policy with a taxable premium of \u20b920,000 and the applicable GST rate is 18%.<\/p>\n\n\n\n

Particular<\/th>Amount<\/th><\/tr><\/thead>
Insurance premium<\/td>\u20b920,000<\/td><\/tr>
GST at 18%<\/td>\u20b93,600<\/td><\/tr>
Total payable<\/td>\u20b923,600<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

For an intra-state supply, GST consists of \u20b91,800 CGST and \u20b91,800 SGST.<\/p>\n\n\n\n

For an inter-state supply, \u20b93,600 IGST generally applies.<\/p>\n\n\n\n

Example: Third-Party Insurance for Goods Carriage<\/h3>\n\n\n\n

Suppose a transport business purchases a qualifying third-party insurance policy for a goods carriage vehicle.<\/p>\n\n\n\n

Particular<\/th>Amount<\/th><\/tr><\/thead>
Insurance premium<\/td>\u20b910,000<\/td><\/tr>
GST at 5%<\/td>\u20b9500<\/td><\/tr>
Total payable<\/td>\u20b910,500<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

This example applies only when the insurance service qualifies for the specified 5% rate.<\/p>\n\n\n\n

Difference Between Motor Vehicle Insurance and Related Insurance Services<\/h2>\n\n\n\n

Insurance services are classified according to the risk covered and the nature of the insurance contract.<\/p>\n\n\n\n

Insurance service<\/th>SAC code<\/th><\/tr><\/thead>
Motor vehicle insurance services<\/td>997134<\/strong><\/td><\/tr>
Accident and health insurance services<\/td>997133<\/strong><\/td><\/tr>
Marine, aviation and other transport insurance services<\/td>997135<\/strong><\/td><\/tr>
Freight insurance and travel insurance services<\/td>997136<\/strong><\/td><\/tr>
Other property insurance services<\/td>997137<\/strong><\/td><\/tr>
Motor vehicle reinsurance services<\/td>997143<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

For example, an insurance policy covering damage to a truck generally falls under SAC 997134.<\/p>\n\n\n\n

A separate policy covering goods or cargo against loss during transportation may fall under SAC 997136.<\/p>\n\n\n\n

Businesses should distinguish vehicle insurance from freight insurance because they protect different risks.<\/p>\n\n\n\n

The official GST classification separately identifies these services. <Cite refs={[“turn650985search24″,”turn650985search26”]}\/><\/p>\n\n\n\n

Is Input Tax Credit Available on Motor Vehicle Insurance?<\/h2>\n\n\n\n

Input Tax Credit (ITC) on motor vehicle insurance depends on the type of vehicle, its use and the restrictions under Section 17(5) of the CGST Act.<\/p>\n\n\n\n

For example, ITC on insurance relating to certain passenger motor vehicles may be blocked unless the vehicle is used for a qualifying purpose, such as further supply of vehicles, passenger transportation or driving instruction.<\/p>\n\n\n\n

For eligible business vehicles, such as qualifying goods carriage vehicles, ITC may be available subject to the general GST conditions and applicable restrictions.<\/p>\n\n\n\n

The availability of ITC should not be determined solely by the SAC code or the GST rate charged.<\/strong><\/p>\n\n\n\n

Businesses should verify vehicle eligibility and maintain the relevant insurance documents before claiming ITC.<\/p>\n\n\n\n

How to Identify the Correct SAC Code for Motor Insurance<\/h2>\n\n\n\n

To classify motor vehicle insurance services correctly, businesses should review the insurance policy and identify the principal coverage.<\/p>\n\n\n\n

For policies covering motor vehicle damage, theft or third-party liability, SAC 997134 generally applies.<\/p>\n\n\n\n

If the insurance covers goods transported in a vehicle rather than the vehicle itself, a different classification may apply.<\/p>\n\n\n\n

Businesses should also check whether the policy qualifies for a specific GST rate, such as the 5% rate on third-party insurance for goods carriage vehicles.<\/p>\n\n\n\n

The SAC classification can be verified using the official GST Portal’s HSN\/SAC search facility.<\/p>\n\n\n\n

FAQs About Motor Vehicle Insurance SAC Codes<\/h2>\n\n\n\n

What is the SAC code for motor vehicle insurance services?<\/h3>\n\n\n\n

The SAC code for motor vehicle insurance services is 997134<\/strong>. It covers insurance policies protecting against risks associated with motor vehicles.<\/p>\n\n\n\n

What is the GST rate on car insurance?<\/h3>\n\n\n\n

Car insurance generally attracts 18% GST<\/strong> on the taxable insurance premium.<\/p>\n\n\n\n

What is the GST rate on third-party insurance for trucks?<\/h3>\n\n\n\n

Qualifying third-party insurance for goods carriage vehicles attracts 5% GST<\/strong>, effective from 22 September 2025.<\/p>\n\n\n\n

Is the SAC code for two-wheeler insurance different from car insurance?<\/h3>\n\n\n\n

No. Both two-wheeler and car insurance services generally fall under SAC 997134<\/strong>.<\/p>\n\n\n\n

Can businesses claim ITC on motor vehicle insurance?<\/h3>\n\n\n\n

ITC eligibility depends on the vehicle category, business use and restrictions under Section 17(5) of the CGST Act. Not every business motor insurance premium qualifies for ITC.<\/p>\n\n\n\n

Maintain Accurate Business Expense Records with myBillBook<\/h2>\n\n\n\n

Businesses operating delivery vehicles, trucks or other commercial vehicles need to maintain accurate records of insurance premiums, operating expenses and customer transactions.<\/p>\n\n\n\n

Using myBillBook’s accounting software<\/a>, businesses can organise their financial records alongside day-to-day billing activities.<\/p>\n\n\n\n

For businesses involved in vehicle servicing and repairs, understanding the applicable automotive repair service classification<\/a> can also help distinguish repair charges from insurance premiums.<\/p>\n\n\n\n

Official Sources<\/h2>\n\n\n\n
    \n
  1. GST Council \u2013 Scheme of Classification of Services<\/a><\/li>\n\n\n\n
  2. GST Council \u2013 Explanatory Notes to the Scheme of Classification of Services<\/a><\/li>\n\n\n\n
  3. GST Council \u2013 September 2025 Rate Changes<\/a><\/li>\n\n\n\n
  4. CBIC \u2013 GST Rates for Goods and Services<\/a><\/li>\n\n\n\n
  5. GST Portal \u2013 Search HSN\/SAC Code<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    The SAC code for motor vehicle insurance services is 997134. The general GST rate is 18%, while third-party insurance for […]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":11106,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-7291","page","type-page","status-publish","hentry"],"yoast_head":"\nMotor Vehicle Insurance SAC Code 997134 in India<\/title>\n<meta name=\"description\" content=\"Find motor vehicle insurance SAC code 997134 and GST rates in India. Check car, bike, commercial vehicle and goods carriage third-party insurance GST.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Motor Vehicle Insurance SAC Code 997134 in India\" \/>\n<meta property=\"og:description\" content=\"Find motor vehicle insurance SAC code 997134 and GST rates in India. Check car, bike, commercial vehicle and goods carriage third-party insurance GST.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-22T13:59:43+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Motor Vehicle Insurance SAC Code 997134 in India","description":"Find motor vehicle insurance SAC code 997134 and GST rates in India. Check car, bike, commercial vehicle and goods carriage third-party insurance GST.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/","og_locale":"en_US","og_type":"article","og_title":"Motor Vehicle Insurance SAC Code 997134 in India","og_description":"Find motor vehicle insurance SAC code 997134 and GST rates in India. Check car, bike, commercial vehicle and goods carriage third-party insurance GST.","og_url":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/","article_modified_time":"2026-10-22T13:59:43+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/","url":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/","name":"Motor Vehicle Insurance SAC Code 997134 in India","isPartOf":{"@id":"https:\/\/mybillbook.in\/blog\/#website"},"datePublished":"2024-01-11T10:58:29+00:00","dateModified":"2026-10-22T13:59:43+00:00","description":"Find motor vehicle insurance SAC code 997134 and GST rates in India. Check car, bike, commercial vehicle and goods carriage third-party insurance GST.","breadcrumb":{"@id":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/mybillbook.in\/blog\/sac-code\/motor-vehicle-insurance-services\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/mybillbook.in\/blog\/"},{"@type":"ListItem","position":2,"name":"SAC Code List Under GST: Meaning, Classification in India","item":"https:\/\/mybillbook.in\/blog\/sac-code\/"},{"@type":"ListItem","position":3,"name":"SAC Code for Motor Vehicle Insurance Services"}]},{"@type":"WebSite","@id":"https:\/\/mybillbook.in\/blog\/#website","url":"https:\/\/mybillbook.in\/blog\/","name":"","description":"","publisher":{"@id":"https:\/\/mybillbook.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/mybillbook.in\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/mybillbook.in\/blog\/#organization","name":"MyBillBook","url":"https:\/\/mybillbook.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/mybillbook.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/mybillbook.in\/blog\/wp-content\/uploads\/2025\/11\/cropped-logo-half.png","contentUrl":"https:\/\/mybillbook.in\/blog\/wp-content\/uploads\/2025\/11\/cropped-logo-half.png","width":385,"height":65,"caption":"MyBillBook"},"image":{"@id":"https:\/\/mybillbook.in\/blog\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/pages\/7291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/comments?post=7291"}],"version-history":[{"count":5,"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/pages\/7291\/revisions"}],"predecessor-version":[{"id":11178,"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/pages\/7291\/revisions\/11178"}],"up":[{"embeddable":true,"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/pages\/11106"}],"wp:attachment":[{"href":"https:\/\/mybillbook.in\/blog\/wp-json\/wp\/v2\/media?parent=7291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}