Page 1 of 2

GST Rates for Packers and Movers Services in

India
Packers & movers are a specific kind of business where individuals with transporting
needs are served. Moving from one place to another, either because of a job change or
for some other reason, can be a hectic task. Besides the transporting expense, getting
everything packed and loaded to the vehicle is another tiresome job. This is why
Packers and Movers services are there.

After the launch of the GST system in India on July 1, 2017, the tax applicability on
moving services has somewhat changed. In this article, we discuss about GST for
packers and movers and how the new taxation system impacts this service and
customers’ pockets.

GST, or Goods and Services Tax, is an indirect tax system in India, under which there
are five tax slabs – 0%, 5%, 12%, 18%, and 28%.

GST Rates on Packers and Movers Services

Like everything else, Packers and Movers services are also taxable under GST. Now,
as you can see, this is a mixed service, where movers are transportation services while
packers are a labor service. Now, in general, GST rates for packers and movers
services are as follows:

GST rate on transportation services

In general GST on transportation services is 5%.

So, if you choose to avail only the transportation (moving) service from a logistic or
packers & movers company, GST on transportation would be levied at 5% rate.

Read Also: Impact of GST on Freight Charges and Goods Transport Agency
GST on transit insurance
For availing insurance services on transit while moving, GST rate on transit insurance is
charged at 18%.

GST on Packers and Movers services

If you choose to avail the complete services of a Packers & Movers company, including
packing, uploading & downloading and transportation, then you will have to pay 18%
GST on the bill.

GST on Cargo Movement

Some packers & movers may offer relocation services as “Cargo movement”. In that
case, the GST to be levied on services will be 5%.
 Page 2 of 2

Now, the point to note here is that the normal GST rate on packers and movers is
18%, unless you choose to avail only the transport services. This is where things get
confusing for most of the consumers out there, as they begin to think that GST on
packers & movers is 5%, which is not true.

Packers & Movers is a mixed service, which combines multiple services, including labor
services, transportation, etc. This is why the tax rate of 18% has been decided, keeping
all the services in mind. If you decide to avail individual services from different service
providers, the tax will be levied accordingly. For instance, if you are doing the packing
and loading part yourself and only hiring transportation, then you will pay 5% GST on
the bill. However, if you are also availing packing, loading, unloading, etc. along with
transportation, then the GST to be charged is 18%.