What are GST Rates on Packers and Movers Services in India?

When it comes to taxes and regulations, the services industry is one of the most complicated sectors. This is primarily because services cannot be taxed at a fixed price point as goods can. Services are almost always billed on an hourly basis or as a percentage of the final cost of service (such as Packers and Movers). To make things easier for businesses in India that provide services, GST has set up specific rates for businesses in different industries. This article will give you an idea about different GST Rates for Packers and Movers in India

GST Rates for packers and movers

Comprehensive Guide on Packers and Movers GST Rates in India

Packers and Movers GST Key Facts:

By the way, if you are looking for the best packers and movers in Indore, then you can hire services from www.malwaroadways.com

What is GST?

GST (Goods and Services Tax) is an indirect tax introduced to replace a host of other indirect taxes such as value-added tax, service tax, purchase tax, excise duty, and so on. GST is charged on the supply of certain goods and services in India. It is one tax that is applicable all over India.

GST is categorized into four types:

  1. CGST – Central Goods and Services Tax
  2. SGST – State Goods and Services Tax
  3. IGST – Integrated Goods and Services Tax
  4. UTGST- Union Territory Goods and Services Tax

Under the GST administration, the tax is levied on every point of the transaction on manufacturing, sale, consumption, and services. GST has different slabs of 5%, 12%, 18%, and 28%. Basic tax rates are 18%. The subsidized goods and services come under the slabs of 5% and 12%. Luxury items attract a 28% GST rate slab.

GST Rates for Domestic Relocation Services

There are different slabs of GST rates on transportation services. According to many tax professionals, the standard GST rates applicable for household goods moving are the following.

Misunderstandings about GST rates in the Packers and Movers Industry

The transportation and logistics industry is one of the highest contributors to the development of India. Progress of a country may stop due to any problem with the transportation system. The transportation industry has had a huge impact on India's economic development. If we stop the transportation system for one day, it can disrupt the entire business channel.

How much GST charge do Packers and Movers companies charge?

We found that a lot of customers are complaining and asking questions on Quora.com and other online forums about GST rates for packers and movers in India. Most of the customers are complaining that packers and movers charged them higher GST rates for service. They complain that the GST rate for packers and movers comes under the slab of 5%, but companies often charge 18%. There is a misunderstanding about the new GST rates in the transportation industry.

So, what is the truth? What are the actual GST rates that professional packers and movers or logistics companies should charge? Let’s understand it.

What is the Correct GST Rate for the Packers and Movers Industry – 5% or 18%?

Logically GST tax rate of movers and packers comes under the 18% GST slab.

Let’s understand. Professional packers and movers companies are not only logistics or transport companies but they also provide full services for shifting various types of items from one place to another.

Take the example of household goods shifting. If you hire household shifting services from one of the experienced movers and packers in your city. They will provide you with various services like packing service, loading service, transportation service, unloading service, unpacking services, and rearranging services.

You see that you get total support in the complete moving process. You don’t need to lift even a single item with you. They are experts and they will do everything for your move. Thus you get full services of professional packers and movers. And it will herby attract a GST rate of 18%.

So, why people are complaining in various online forums that the real GST rate of packers and movers is 5%.

In some ways, they are not completely wrong. There is also a provision for a 5% GST rate in the transportation industry. 5% GST rate is applicable when customers solely use transport of the logistics or packers and movers company. So, you must not agree with paying 18% GST if you are using only the transport of a logistic company, it’s only 5%.

If your packers and movers show your house relocation goods as “cargo movement”, then you don’t need to pay 18% GST. Remember, cargo handling GST charges are only 5%.

In What Circumstances, Transportation of Goods is Exempt Under GST?

Transportation of goods from one place can be exempted if you are transporting goods without using the services of professional packers and movers or a courier agency. If you are transporting goods by inland waterways, then again is exempted under GST. Keep in mind, that GST is applicable if you are using professional packers and movers or logistics companies for the transportation of goods.

Summary

The 18% GST is applicable when you use the full services of professional packers and movers. The 5% GST is applicable when using only the transport of a logic company or packers and movers.

One more important thing you should keep in mind. Don’t forget to check the GST registration of the moving company, if you are paying extra GST charges. You must ensure that you only select one of the GST-registered packers and movers with a valid GSTIN number. By hiring a registered company you can avoid possible scams. You can hire GST-registered Packers and Movers through www.malwaroadways.com

For more information about GST rates applicable for logistics and transport companies, you should explore GST's official website – https://www.gst.gov.in/.