GST on Movers and Packers: Rates, Rules & Billing Guide

If you choose only the transport service from packers and movers, the GST rate applied on the bill is just 5%.

However, if you opt for full service, including packing, loading, unloading, and unpacking, then GST is charged at 18%.

Let’s say, Karan, an IT professional, is shifting from his rented flat in Hyderabad to his newly bought apartment in Gachibowli. Here's what the numbers looked like in the end:

• Total Service Cost (Packing to Unpacking): ₹30,000
• GST @18% (HSN 9966 - Full Service): ₹5,400
• Total Paid: ₹35,400
• ITC Claimable? No – it’s for personal use

But wait, his friend Simran, who runs a boutique, also hired movers to relocate her store.

• Business Move Cost: ₹40,000
• GST @18%: ₹7,200
• ITC Claimed: ₹7,200, which is fully claimable for business use

It's interesting how the same service yields different GST outcomes—personal moves cost more, but business moves are eligible for tax credits. Understanding GST here is financially smart.

This blog explains GST rates, HSN codes, and ITC rules for personal and business movers and packers services.

What Are Movers and Packers Services?

Let’s say Riya, a software developer in Bengaluru, is relocating from her 2BHK apartment in Indiranagar to a new home in Whitefield, about 20 km away. With 2 weeks left to shift and a busy work schedule, she hires a mover and packer service. Here's how the ₹18,000 she pays covers every step of the move:
 

These helpers didn’t just shift things; they made life easy. Riya’s breakable dishes stayed safe, her bed was ready, and her clothes were neatly arranged before she finished work!

Movers and packers do everything—from packing boxes to hanging curtains. They make shifting homes easy, using smart planning, numbers, and skills to make the whole move feel smooth like magic.

Applicability of GST on Movers and Packers:

Let’s say Aman, a marketing executive in Pune, hires a packers and movers company to shift from Pune to Mumbai. He opts for a full-service package that includes:

• Packing
• Loading
• Transportation
• Unloading
• Unpacking

The company gives him a quote of ₹25,000 for the entire relocation. Now, because this is a composite supply (i.e., all services are bundled together and transportation is the principal service), GST at 18% is applicable on the full amount.

Here's the breakdown:
 

Now, let’s calculate the GST:

GST @18% of ₹25,000 = ₹4,500

So, Aman’s final invoice looks like this:
 

Even though Aman was initially quoted ₹25,000, the final amount he pays is ₹29,500 after GST. Since it's a bundled service, he can't break the GST down by each activity it applies to the whole deal.

So next time you move, remember: GST rides along with your truck!

Packers and Movers HSN Code and GST Rate:

When it comes to GST, the HSN code helps classify the nature of the service. For packers and movers, two HSN codes apply:

• HSN 9965: Goods Transport Services
• HSN 9966: Rental services of transport vehicles with operators

Here’s how the GST rate varies based on the service type:
 

Example:

Rohit wants to transport just his office furniture from Delhi to Gurgaon using only a truck; this falls under HSN 9965.

• Cost of transport: ₹10,000
• GST @5%: ₹500
• Total Bill: ₹10,500
• No ITC can be claimed

If Rohit hires packers and movers to do everything—packing, loading, moving, and unloading—it comes under a service code called HSN 9966.

• Service Cost: ₹15,000
• GST @18%: ₹2,700
• Total Bill: ₹17,700
• ITC can be claimed (for businesses)

So, while HSN 9965 is cheaper, HSN 9966 offers more value with ITC benefits and complete support!

Is ITC Available for GST on Packers and Movers Services?

Input Tax Credit (ITC) is like getting cashback on the GST you pay, but only if you’re using the service for business! If you’re shifting your home, then there is no ITC for you.

Let’s understand this with an example:

Scenario 1: Personal Use (No ITC)

Ananya moves her household from Jaipur to Noida and pays ₹20,000 for full packers and movers services.
 

Scenario 2: Business Use (ITC Available)

Now, a company named XYZ Pvt. Ltd. relocates its Mumbai office and pays ₹50,000 for the same service.
 

So, while individuals wave goodbye to ITC, businesses get a tax advantage if the service supports their operations. It’s not just about moving stuff—it’s about how and why you move it!

Conclusion

Whether you're shifting your house or office, knowing how GST works on packers and movers can help you save money. If you're moving for personal reasons, you pay 18% GST, but you can't claim any tax benefit. For business moves, you can claim a full tax credit under HSN 9966. If you're just using a truck (HSN 9965), GST is 5%, but no credit is allowed. So, choose wisely, your purpose decides how much tax you pay!

FAQs:

Q1: What is the GST rate on full-packers and movers' services?
The GST rate is 18% under HSN 9966 for full relocation services.
 

Q2: Can I claim ITC on movers and packers services for personal use?
No, ITC cannot be claimed for personal household relocations.
 

Q3: Which HSN code applies only to transportation by truck?
HSN 996511 applies to goods transport services, with 5% GST and no ITC.
 

Q4: Is ITC available for business-related shifting services?
Yes, businesses can claim full ITC if the service is used for business purposes under HSN 9966.
 

Q5: Does GST apply to all components like packing, loading, and transport?
Yes, if it’s a bundled service (composite supply), 18% GST applies to the total amount.

 

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