GST impact in case of packer and movers

There are different GST rate lists on different consumer goods, as well as transportation services. According to the central government notification, the following are the standard GST rates for domestic shifting:  

• GST for transportation = 5%
• GST for transit insurance = 18%
• GST for Packers and Movers = 18%

GST rates lists for packers and movers is fixed to help people pay the appropriate amount of tax on commercial or industrial good within the country. You can hire any professional goods moving company in India to help you with transportation, packing and moving of goods.

GST registered company

You must ensure that you only select a GST registered transporter with valid GSTIN number to pack and move your goods. This is because only the valid and registered transporters are able to give you proper quotes on the services they offer.

Important points to consider

• For ensuring that you pay correct GST charges to the national treasury, you need to check the transporter’s bill structure. When paying 18% GST, the bill or invoice must include both packing and unpacking details. If the bill contains only transportation details, only 5% GST is applicable. If a transporter provides you bill with 5% GST, they probably don’t have the input credit facility.
• If your goods movers and packers show your household shifting goods as “cargo movement,” there is no need to pay 18% GST. This is because the cargo handling GST charges are only 5% not more than that.
• If you are required to calculate GST, you may get help from online GST calculator.