GST on packers and movers is one of many cost heads in the total moving cost. What is the GST rate on packers and movers services in India? Given that movers and packers may charge a significant amount, you must be interested in knowing this. There can be different GST rate slabs for packers and movers. It all depends on the types of services you hire from a company.
About GST, It’s Types and Different Slabs
GST stands for Goods and Services Tax. It is an indirect tax system in India. It was implemented on July 1, 2017, Under this new tax system, various goods and services are classified into five tax slabs. The basic GST tax slab is 18%. There are three types of GST, which are as follows:
- CGST (Central Goods and Services Tax): A tax levied by the central government on the supply of goods and services within a state in India
- SGST (State Goods and Services Tax): A tax levied by the state government on the supply of goods and services within a particular state in India
- IGST (Integrated Goods and Services Tax): A tax levied by the central government on the interstate supply of goods and services in India
The current GSTG rate slabs for different goods and services are as follows:
- 0% GST: fresh fruits and vegetables, newspapers, books, and unprocessed food.
- 5% GST: transportation of goods, hotel room rent of less than Rs. 1000, packaged food, clothes, and footwear
- 12% GST: computers, medicines, processed food items, business class air travel, and telecom services
- 18% GST: Luxury items, electronics, AC hotel, IT services, and complete packers and movers services,
- 28% GST: cars, aerated drinks, cigarettes, and services like 5-star hotels, movie tickets (over Rs. 100), and race club betting
Packers and movers services are also taxable under GST. The rates applicable to these services depend on the nature of the services you want to hire. The GST rates on packers and movers have impacted the costs of hiring relocation services. So, understanding the new tax system is essential if you are thinking of hiring packing and moving services. In general, the GST rates on hiring the services of packers and movers will be as follows:
- GST on transportation of household goods: 5%
- GST on complete shifting service of packers and movers: 18%
- GST on transit or transport insurance: 18%
Guide to GST Rates for Packers and Movers: Don’t Pay a Rupee Extra!
Packers and movers services involve a combination of transportation and labour services. Therefore, the GST rates for packers and movers services vary based on the specific services the customer chooses.
1. GST rate on transportation services = 5%
If you need only the transport service from a packers and movers company, GST on household goods transportation is levied at a rate of 5%.
2. GST rate on transit insurance = 18%
If you opt for transit insurance on your move to protect your goods, movers will levy GST at the rate of 18 on transit insurance fee.
3. GST rate on complete packers and movers services = 18%
If you employ movers and packers and let them handle all shifting tasks including packing, loading, unloading, transportation, and unpacking, the GST rate will be 18% of the total bill amount.
4. GST rate on cargo movement = 5%
Some packers and movers companies in India also offer “Cargo Movement” or “Freight Forwarding” services. In general, GST rate on freight charges is 5%.
It’s important to note that the standard GST rate for packers and movers services is 18% if all services, including labour, transportation, packing, loading, and unloading, are availed. However, if a customer chooses to use only transportation services and performs other tasks such as packing and loading themselves, the applicable GST rate is 5% on the transportation charges alone.
Please keep in mind that the GST rates and regulations may have been updated. It’s always advisable to refer to the latest official information or consult a tax professional for accurate and up-to-date details on GST rates for packers and movers services in India.ā