GST Rate on Banking
The GST rate on banking is 18%, under SAC code 997111 (banking services (interest, fee-based)). Here is the full breakdown, a worked example, and related rates in Services.
GST rate breakdown for banking
- GST rate: 18%
- Intra-state: 9% CGST + 9% SGST
- Inter-state: 18% IGST
- SAC code on the invoice: 997111
- Also covers: bank services
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on banking
- Taxable value: ₹10,000
- GST (18%): ₹1,800
- Within state: ₹900 CGST + ₹900 SGST
- To another state: ₹1,800 IGST
- Invoice total: ₹11,800
FAQs about GST on banking
What is the GST rate on banking?
The GST rate on banking is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Banking falls under SAC code 997111.
What is the HSN code for banking?
Banking falls under SAC code 997111, which covers banking services (interest, fee-based). Show this code on every GST tax invoice line for banking.