GST on packers and movers services in India

Understanding GST on Packers and Movers Services in India

When you receive a final quote from a relocation company in India, you'll often notice a extra line item added to the basic service cost: Goods and Services Tax (GST).

If you’ve ever wondered why some moving bills have 5% GST while others charge 18%, you aren't alone! The tax slabs for packers and movers can seem confusing at first glance, but understanding them helps you spot genuine invoices and budget your home relocation accurately.

Here is a straightforward guide to how GST applies to packers and movers in India:

1. The Two Main GST Rates for Relocation The GST charged on your house shifting depends heavily on the type of service package you choose:

18% GST (Full Composite Relocation Service): If you opt for a complete, end-to-end moving package—where the company handles packing, loading, transportation, unloading, and unpacking—it is categorized as a composite service. Under SAC Code 9965/9985, full-service shifting attracts 18% GST (9% CGST + 9% SGST for intrastate moves, or 18% IGST for interstate moves).

5% GST (Transport-Only Services): If you pack and handle everything yourself and hire the moving company solely to transport your goods in their truck (Goods Transport Agency / GTA services), a lower GST rate of 5% applies without Input Tax Credit (ITC) benefits for the mover.

2. GST on Additional Services (Transit Insurance & Storage) If your move includes extra support, these services carry their own standard GST rates:

Transit Insurance: Adding insurance to protect your belongings against damages usually attracts 18% GST.

Warehousing / Storage Services: If you store your furniture in the mover's warehouse temporarily, the storage charges attract 18% GST.

3. Can You Claim Input Tax Credit (ITC)? For Personal House Relocations: No, individual homeowners cannot claim Input Tax Credit on personal shifting expenses.

For Corporate/Business Relocations: Yes! If a registered business hires packers and movers to relocate an employee, office branch, or warehouse for business operations, they can claim full ITC on the 18% GST charged on the invoice.

4. How to Spot a Genuine GST Invoice Before paying the tax amount, double-check that your moving company's bill includes:

A valid 15-digit GSTIN (GST Identification Number). You can verify this for free on the official GST portal.

A proper Consignment Note / Lorry Receipt (LR) number.

A clear breakdown showing the base service charge and the calculated CGST/SGST or IGST.