A complete guide on Packers and Movers GST Rates in India

Moving from one place to another can be an expensive affair. There are several expenses apart from the expenses of hiring professional packers and movers. The rates of hiring moving services may depend on various factors. One of the key factors is GST charges.

What is GST?

GST stands for Goods and Services Tax. It is one indirect tax for the entire country. It has replaced many indirect taxes in the country.Under the GST regime, the tax is levied on every point of the transaction on manufacturing, sale, consumption and services. GST tax rates are levied on the slabs of 5%, 12%, 18% and 28%. Basic tax rates are 18%. The subsidized goods and services come under the slabs of 5% and 12%. Luxury items attract 28% GST rate slab.

What is the correct GST rate for the moving industry – 5% or 18%?

It is seen that logically GST tax rate of movers and packers comes under the 18% GST slab.

Let’s understand. Professional packers and movers companies are not only logistics or transport companies but they also provide full services for shifting of various types of items from one place to another.

Take the example of household goods shifting. If you hire household shifting services from one of professional movers and packers in your city, they provide you services. Major services include packing service, loading service, transportation service, unloading service, unpacking services, and rearranging services.

You see that you get total support in the whole episode of your move. You don’t need to lift even a single item with you. There are experts that will be everything for your move. Thus you get full services of professional packers and movers. And it will herby attract a GST rate of 18%.

So, why people are complaining on various online forums that the real GST rate of packers and movers is 5%.

In some ways, they are not completely wrong. There is also a provision of 5% GST rate in the transportation industry. 5% GST rate is applicable when customers solely use transport of the logistics or packers and movers company. So, you must not agree with paying 18% GST if you are using only the transport of a logistic company, it’s only 5%.