Packers and Movers GST Rate in India: 5% vs 18% Rules Explained (2026)
One of the most confusing aspects of hiring moving companies in India is the GST rate. Depending on the exact scope of services, the Goods and Services Tax can be either 5% or 18%. Here is the legal breakdown so you never fall for billing traps.
1. The 5% vs 18% GST Dual-Rate System
Under Indian GST law, relocation companies cannot arbitrarily pick a tax rate. The rate is determined strictly by whether you hire pure transportation or a composite full-service package:
| Relocation Scope | GST Rate | Applicable SAC Code | Input Tax Credit (ITC) |
|---|---|---|---|
| Full-Service RelocationPacking, Loading, Transport, Unloading & Unpacking | 18% | SAC 9965 / 9967 | Eligible for Businesses (100% ITC) |
| Pure Transport Only (GTA)Customer packs and loads; mover only drives the truck | 5% | SAC 9965 (Goods Transport Agency) | No ITC Available |
| Transit Insurance CoverageOptional policy covering household transit damage | 18% | SAC 9971 (Insurance Services) | Standard Business Expense |
2. Intra-State vs Interstate Moving Tax Split
For a move from Koramangala to Whitefield (both Karnataka) or Andheri to Thane (both Maharashtra), the invoice splits into equal Central and State GST shares.
For interstate corridors such as Bangalore to Hyderabad or Delhi to Mumbai, the invoice charges Integrated GST (IGST) at 18% alongside mandatory GST E-Way Bill documentation.
Unregistered moving brokers frequently tempt customers by stating: "We will bill you at 5% GST to save you money." This is a major red flag:
- Legally, a move involving labor and packing boxes cannot be billed at 5% GST.
- If audited by your employer's HR or Finance department for reimbursement, a 5% GTA bill with packing labor included will be rejected.
- Movers who cut corners on tax compliance typically also cut corners on vehicle fitness, cargo transit insurance, and background-checked drivers.
Frequently Asked Questions on Moving GST
What is the standard GST rate for packers and movers in India?
For full-service relocation (packing materials, labor, loading, truck transport, and unloading), the standard GST rate is 18%. This is categorized as a "Composite Supply of Services" under SAC code 9965 or 9967.
When does the 5% GST rate apply to moving services?
The 5% GST rate applies ONLY if you are hiring pure Goods Transport Agency (GTA) transportation—meaning you pack all items yourself, arrange your own labor, and hire only the vehicle with a driver. Under this 5% rate, the mover cannot claim Input Tax Credit (ITC).
Can a company claim Input Tax Credit (ITC) on office relocation bills?
Yes. If a registered business relocates its commercial office or IT equipment and receives a valid tax invoice with 18% GST (CGST+SGST or IGST) containing the mover's active GSTIN and SAC code 9965/9967, the business can claim 100% Input Tax Credit on the freight and packing expenses.
What GST rate applies to transit insurance for household goods?
Transit insurance is categorized as general insurance and strictly attracts 18% GST. It is typically billed as an optional line item based on 3% of the declared asset value.
Why do some local movers quote 5% GST for full packing and moving?
Unverified moving brokers often quote 5% GST verbally to appear cheaper. However, on moving day or at the billing stage, they either issue a fake non-compliant consignment slip or add an extra 13% tax at delivery. Legally, any service including labor and packing must be billed at 18% GST.
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