Easy Guide to Understanding GST Rates for Packers and Movers in India (2025)

If you are planning to move and are curious about how GST (Goods and Services Tax) impacts the cost of packers and movers, this guide is for you. We’ll break it down in simple terms so you can understand everything without the jargon.

What is GST and How Does It Affect Packers and Movers?

GST is a single tax applied across India to simplify the taxation system. For packers and movers, GST is charged on services like packing, moving, and transporting goods. This tax ensures transparency in pricing and makes it easier to calculate the total cost of relocation.

GST Rates for Packers and Movers

Here are the basic GST rates you need to know:

• Packing and Moving Services: 18%
  • Goods Transport Services:5% (if you can’t claim input tax credits)
  • 12% (if you can claim input tax credits)
• Loading and Unloading Services: 18%

What Does This Mean for You?

If you’re hiring a full-service packers and movers company, most of their services will be taxed at 18%. For simple transportation of goods, the GST rate might be lower, depending on the service provider’s setup.

Understanding the HSN Code

What is an HSN Code?

The HSN (Harmonized System of Nomenclature) code is used to classify goods and services for taxation. For packers and movers, these are the main codes:

ServiceHSN Code

Goods Transport by Road 996511

Packing Services 998540

Other Services 999799

Why Does This Matter?

Knowing the HSN code ensures you’re charged the correct GST rate. It also helps businesses stay compliant with tax rules.

How GST Affects the Cost of Moving

Factors That Influence GST Calculations:

1. Type of Service: Packing, transportation, or full-service moving.
2. Distance: Longer distances may result in higher transport costs, which affect GST.
3. Value of Goods: A higher declared value can mean higher GST.

Including Packing Costs in GST

If packing services are included in your moving package, the entire service will likely be taxed at 18%. This simplifies billing but may slightly increase costs.

Benefits of GST for Packers and Movers

For Customers:

• Transparent Pricing: No hidden charges.
• Uniform Rates Across India: You pay the same GST rate, no matter where you’re moving.
• Reliable Service Providers: Only registered businesses can charge GST, which ensures professionalism.

For Businesses:

• Simplified Tax System: GST replaced multiple taxes, making compliance easier.
• Input Tax Credits: Businesses can claim back GST paid on certain expenses, reducing costs.

Are There Any GST Exemptions?

Some transport services are exempt from GST, like:

• Transport of agricultural products.
• Non-motorized vehicles (like carts).
• Relief materials for disasters.

GST Registration for Packers and Movers

Who Needs to Register?

Any packers and movers business with an annual turnover above Rs. 20 lakh (Rs. 10 lakh in special states) must register for GST.

What Documents Are Required?

• PAN Card
• Aadhaar Card
• Business Address Proof
• Bank Details
• Digital Signature

Quick Tips for Customers

1. Always ask for a GST invoice from your service provider.
2. Check the HSN codes and GST rates on the bill to ensure accuracy.
3. Know that you’re paying for transparency and better services.

By understanding GST rates and how they apply to packers and movers, you can plan your move more efficiently. Whether you’re moving within the city or across the country, this knowledge will help you make informed decisions and avoid surprises in your bill.