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GST on Packers and Movers 2024: Updated GST Rates on Transportation

With a team of skilled professionals, we offer expert packing, secure transportation, and efficient unpacking services tailored to your specific needs.

“In 2024, the GST rates for packers and movers range from 5% to 18%, determined by the specific services availed from the company. Notably, transportation services below Rs. 1500 in charges are exempt from GST.”

Looking for GST rates for packers and movers in India? Curious about transportation charges for household goods? You’re in the right place! Let’s dive into the latest updates on GST rates for these services. Stay tuned for a straightforward explanation of the changes.

GST Rates for Logistics Services

The Goods and Services Tax (GST) came into effect on July 1, 2017. It categorizes goods and services into five tax slabs: 0%, 5%, 12%, 18%, and 28%. The standard GST rate is 18%. It’s important to note that GST rates may vary and depend on the nature of the product or service.

Packers and Movers services are considered a type of transportation service and fall under the “Transport of Goods by Road” category in GST. Initially, the GST rate for such services was 5%, but it has since changed.

You must be curious to know which GST slabs the packers and movers are in. Again, it is unclear to many people.

Confusion about the GST rate on packers and movers services is common, with some citing 5%, others 12%, and yet others 18%. In this blog post, I aim to clarify this issue by providing comprehensive information on GST rates for transportation services, especially for household goods. Drawing from authentic sources, I have prepared a detailed guide to GST on transportation and packers and movers. So, stay calm and patient as I unravel everything you need to know about GST rates in this sector.

Misconceptions About GST Rates in Moving Industry

The moving industry plays a crucial role in the growth of a nation. In India, the transportation sector has significantly contributed to the economic progress of the country. Any issues within the transportation system can potentially hinder the overall development of a nation.

Do you ever wonder about the consequences of rising transportation expenses? It often leads to complaints about inflation, affecting the prices of goods and services. The implementation of the new GST rates has also brought changes to the moving industry.

What are the rates levied on transport and logistics companies?
How much GST do packers and movers companies levy?

I have some indirect involvement in the transportation industry. Recently, I came across several complaints from customers on platforms like Quora.com and other online forums regarding the tax rates imposed on professional packers and movers under the new GST regime. Many customers are expressing their dissatisfaction with the higher GST charges they are being asked to pay. They argue that the GST rate for transportation services is either 5% or 12%, but relocation companies often charge 18%.

This confusion about the new GST regime seems to be prevalent across various industries, including transportation. So, what is the truth? What is the actual GST rate that professional packers and movers or logistics companies should be applying? Let’s delve into it and find out.(Source: sagiinfotech.com)

GST on Transportation – Packers and Movers GST Rates

There are different slabs for GST on transportation services. The latest GST rate slabs on movers and packers services in India are as follows:

Packers and Movers Services (CGST) Central GST SGST (State GST) Rate IGST (Integrated GST) Rate
Transportation of goods, wherein only transport service is availed. 2.5% 2.5% 5% without ITC (input tax credit)
Transportation of goods, wherein only transport service is availed. 6% 6% 12% with ITC (input tax credit)
Comprehensive goods transport services include packing, loading, transportation, unloading, and unpacking. 9% 9% 18%

What is the correct GST rate for the moving industry—5%, 12%, or 18%? 

Revised GST Rates

Logically, the GST on packers and movers falls under the18% GST slab. Professional packers and movers offer comprehensive services beyond transportation, including packing, loading, unloading, and more. This full support attracts an 18% GST rate.(Source: nobroker.in)

However, some people argue for lower rates. In certain cases, a 5% or 12% GST rate applies if only transport services are utilized. So, if solely transporting goods, one shouldn’t agree to pay 18% GST. Additionally, if labeled as “cargo movement,” a lower 5% rate may be applicable.

In simple terms, GST rates on packers and movers services in India are as follows:

  • f you use movers and packers solely for transport, the GST rate is 5% or 12%.
  • If you opt for a comprehensive moving service, including packing, loading, transportation, and insurance, the GST rate is 18%.
  •  If transportation services include transit insurance, the GST rate is also 18%.

 

In conclusion, understanding the nuances of GST rates on packers and movers services is essential for making informed decisions during relocation. While opting for comprehensive services attracts an 18% GST rate, utilizing only transportation services incurs a lower rate of 5%. Additionally, it’s imperative to verify the GST registration of the chosen moving company to avoid any discrepancies or scams. By staying informed and vigilant, individuals can navigate the GST landscape more effectively and ensure a smoother relocation process.

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