Choosing safely

GST on Packers and Movers — Is It 5% or 18%?

GST on packers and movers is 18% for a full-service relocation — packing, loading, transport, unloading and rearranging — and 5% for transport-only, where you pack and load yourself and the mover simply carries the goods. Most household moves are full-service and so attract 18%. This is widely misunderstood, and some movers state it wrongly, so it is worth getting straight before you compare quotes.

When is GST 18% on a move?

When the mover provides the complete service — packing your goods, loading them, transporting them, unloading and rearranging at the new home. This is treated as a bundled relocation service and attracts 18% GST. Almost every household 'packers and movers' booking falls here, because packing is the main thing you are paying for.

When is GST 5% on a move?

When you buy transport only — you pack and load the goods yourself, and the mover provides just the vehicle and the drive. This is taxed as goods transport at 5%. It is cheaper on paper, but you take on the packing risk, which is where most damage happens, so it suits a small or simple move rather than a full household.

What is the difference between CGST, SGST and IGST here?

For a move within one state — say within Telangana — the 18% is split as 9% CGST and 9% SGST on the invoice. For a move between states — Telangana to Karnataka, for example — it is charged as 18% IGST instead. The total is the same 18%; only the split differs. Transit insurance, if you choose to add it, is charged at 18%.

How do I claim the GST bill from my employer or bank?

You need a proper GST invoice showing the mover's GSTIN, the service, and the tax. Public-sector banks and many corporate policies additionally require the invoice in the IBA format before they release a relocation claim. Ask your mover for a GST invoice — and the IBA-format bill if your claim needs it — and keep it with your survey quote.