GST on Packers and Movers: What You Need to Know in 2025

Relocating homes or offices is a common practice in India, and professional packers and movers have become an indispensable part of that process. While their services bring convenience, understanding the tax implications—particularly the Goods and Services Tax (GST)—is essential for both service providers and customers. This article offers a detailed and practical look at the GST on packers and movers, highlighting the applicable rates, exemptions, input tax credit (ITC) provisions, and other vital regulations for 2025.

What is GST on Packers and Movers?

GST on packers and movers is governed under the broader classification of Goods Transport Agencies (GTAs). These agencies offer bundled services such as packing, loading, transporting, unloading, and sometimes even insurance coverage. Introduced in 2017, the Goods and Services Tax (GST) replaced multiple indirect taxes like service tax, VAT, and excise duty to create a more unified and transparent tax structure. 

The specific GST rate applicable to packers and movers depends on how their services are structured—whether offered as a composite supply or individually billed. Understanding this classification is crucial for determining the correct tax rate and eligibility for Input Tax Credit (ITC).

Moreover, the classification under GTA also influences whether the transaction qualifies for exemptions or is subject to reverse-charge. If packers and movers offer a complete relocation package, it is taxed at a higher rate compared to standalone transport services. 

For instance, services that include only goods transportation may attract a concessional rate, but adding value-added services like packaging pushes it into a higher tax slab. This distinction not only impacts the GST liability but also the documentation and invoicing norms to be followed. Hence, both service providers and recipients must carefully review service components to ensure GST compliance and cost optimisation.

Applicability of GST on Packers And Movers : A Closer Look

GST is applicable when packers and movers render services as a whole package, including both transport and labour. However, there are specific exemptions and nuances:

• Exclusive Transport Services: When only transportation is involved, without additional services like packing or insurance, the applicable GST rate is either 5% (without ITC) or 12% (with ITC).
• Comprehensive Services: If the service includes packing, loading, unloading, insurance, and transport, the GST rate is 18%.
• Transit Insurance (Standalone): If purchased separately, it attracts an 18% GST rate.
• Low-Cost Services: If the total invoice value is less than ₹1,500 and the service provider is registered, the transaction may be exempt from GST.
• Inland Waterway Transport: Moving goods via inland waterways also qualifies for a GST exemption.

GST Rates for Packers and Movers in 2025

The applicable GST rates continue to vary based on the scope of service:

HSN Code for Packers and Movers

The Harmonised System of Nomenclature (HSN) code for services rendered by packers and movers typically falls under the category 9965 or 9967, depending on the specific nature of the service. The HSN code helps standardise classification and is crucial for invoicing and compliance.

• 9965- Goods Transport Services
• 9967-Supporting Services in Transport (including packaging)

It’s vital for businesses to use the correct HSN codes when filing GST returns to avoid discrepancies and penalties.

Input Tax Credit (ITC): Eligibility and Conditions

ITC allows businesses to claim credit for the GST paid on input services or goods used in the course of business. Here’s how ITC applies:

• Business Use – If a company uses packers and movers for shifting office infrastructure, and the service is directly related to business operations, they can claim ITC.
• Personal Use – Individuals shifting their residence cannot claim ITC.
• Rate Dependency –If the packers and movers opt for the 5% GST rate (without ITC), then the recipient also loses the right to claim ITC.

To claim ITC, ensure the following:

• A valid tax invoice is received.
• The service provider is GST registered.
• The recipient is also a GST-registered entity.
• The goods/services are used for business purposes.

Documentation of GST on Packers and Movers

For packers and movers, issuing a correct invoice is critical for compliance. The invoice must contain:

• GSTIN of supplier and recipient (if applicable)
• Invoice number and date
• Description of services
• HSN code
• GST rate and amount
• Total invoice value

Maintaining these documents helps prevent legal complications and simplifies the audit process.

Reverse Charge Mechanism (RCM): Is It Applicable?

Under the RCM, the liability to pay tax shifts from the supplier to the recipient. In the case of packers and movers:

• Not Applicable Generally: Most packers and movers services do not fall under RCM.
• Exception: If services are procured from an unregistered GTA, and the recipient is a registered business, the GST may be paid under RCM.

Practical Scenarios for Better Understanding

Scenario 1: Shifting Home

Priya hires a local packers and movers agency to shift her household items. The agency charges ₹10,000 for packing, transport, and unloading. Since the service is comprehensive, 18% GST is applicable. Priya, being an individual, cannot claim ITC.

Scenario 2: Office Relocation

A digital marketing company relocates from Delhi to Gurugram. The company pays ₹50,000 to a GST-registered moving agency. The GST charged is 18%, and since this is a business expense, the company can claim ITC.

Scenario 3: Standalone Insurance

Rahul books transit insurance separately through a third party. The insurance is billed at ₹2,000 with 18% GST. Since it’s not bundled with moving services, it’s treated as standalone and taxed accordingly.

Compliance Tips for Packers and Movers

• Proper Registration –Ensure GST registration is up to date and all branches are registered if applicable.
• Accurate Invoicing –Always issue GST-compliant invoices with correct HSN codes.
• Maintain Records –Keep all tax invoices, delivery challans, and e-way bills organised.
• Opt for Appropriate Tax Scheme –Choose the 5% or 12% GST rate depending on your preference for claiming ITC.
• Clarify Bundled Services –Clearly separate or club services in the invoice to avoid confusion regarding applicable tax rates.

Common GST Penalties for Packers and Movers:

Note –Even unintentional errors like using the wrong HSN code or missing GSTIN on invoices can attract notices or fines during GST audits.

Avoidable mistakes – like failing to file on time or omitting key invoice details can damage your company’s credibility and financial health. Always double-check your GST documentation before submission.

GST Registration Thresholds for Packers and Movers in 2025

All packers and movers service providers must evaluate whether they need to register for GST based on their annual turnover and the state they operate in.

GST Registration Criteria

Special Category States include: Arunachal Pradesh, Mizoram, Manipur, Meghalaya, Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh.

Who Must Register?

• If your total annual revenue from services exceeds ₹20 lakhs (or ₹10 lakhs in special states), GST registration is mandatory.
• Even if you’re offering services as a freelancer or sole proprietor, crossing this threshold triggers the need for compliance.
• Businesses with multiple branches across states must register in each state individually.

Why It Matters?

• Without GST registration, you can’t issue a valid GST invoice or legally charge GST.
• Customers may avoid non-registered providers due to lack of ITC eligibility.
• Unregistered businesses caught operating above the threshold can face penalties and backdated tax liabilities.

Pro Tip for Packers and Movers Companies: Even if your turnover is below the limit, voluntary GST registration can enhance your business credibility and allow clients to claim ITC—especially useful for B2B service providers.

Practical Checklist for Customers

• Always check if your service provider is GST-registered.
• Request a GST-compliant invoice.
• Clarify service breakdown—transport, packing, insurance, etc.
• Compare quotes based on post-GST prices.

Conclusion

Understanding the GST on packers and movers is crucial not only for compliance, but also for managing costs effectively—whether you are a business relocating your office or an individual shifting residences. With rates ranging from 5% to 18% depending on service scope, and the availability of ITC in business scenarios, being informed about the applicable rules can save both money and legal hassle. Stay updated with GST norms and always deal with registered service providers to ensure a smooth, tax-compliant moving experience.

Choose Associated Cargo Movers and Packers!

Associated Cargo Movers and Packers offer GST-compliant, professional relocation services tailored to meet your residential and commercial needs. Here’s why they stand out:

• GST Registered –Transparent billing with valid GST invoices and correct HSN codes.
• Comprehensive Services –From packing to insurance, all under one roof—taxed as per regulations.
• ITC Eligible –Businesses can claim Input Tax Credit on eligible services.
• Experienced Team –Skilled professionals ensure damage-free, timely relocations.
• Pan-India Network –Reliable and consistent service across multiple states.
• Compliance Ready–E-way bills, proper documentation, and legal adherence guaranteed.

Choose Associated Cargo Movers and Packers for a stress-free, tax-compliant move every time.

FAQs – GST on Packers and Movers

1. Is GST compulsory for all packers and movers?

If the packers and movers’ turnover exceeds ₹20 lakhs (₹10 lakhs in special category states), they must register for GST and comply accordingly.

2. Can I claim ITC for personal home relocation?

No, ITC can only be claimed if the services are used for business purposes and the receiver is a GST-registered entity.

3. What happens if a packers and movers agency charges GST without being registered?

Charging GST without registration is illegal and can result in penalties and legal action under the GST Act.

4. Can the GST rate be negotiated with packers and movers?

GST rates are fixed based on service types and are not negotiable. However, service charges (excluding GST) can be negotiated.

5. Do packers and movers need to generate e-way bills?

Yes, if the value of goods being transported exceeds ₹50,000, generating an e-way bill is mandatory.

6. Which HSN code should be used for combined services?

For combined services like packing, loading, and transport, HSN 9967 is appropriate. For pure transport, HSN 9965 should be used.