GST on Packers and Movers
When you receive a quotation from a packers and movers company, GST is often the line item that creates the most confusion. Some movers quote 5%. Others quote 18%. Some customers are told the rate depends on the value of their goods. Others are told it depends on the distance. None of these explanations is entirely accurate on its own.
The correct GST rate on packers and movers services in India depends on one specific factor: the nature of the services included. A transport-only service is taxed at 5%. A full-service relocation that includes packing, loading, transport, and unloading is taxed at 18% as a composite supply. Understanding this distinction saves you from both budget surprises and billing fraud.
Applicability of GST on Packers and Movers
GST applies to packers and movers services in India under the Goods and Services Tax Act, 2017. These services fall under the classification of Goods Transport Agency (GTA) and related logistics services. GST is applicable regardless of whether the move is local (within a city), intrastate (within the same state), or interstate (between states).
Who must register for GST?
Movers and packers businesses with an annual turnover above ₹20 lakh in most states (and ₹10 lakh in special category states) must obtain GST registration. Below these thresholds, registration is optional. However, any business providing services to other registered businesses or involved in interstate supply must register regardless of turnover.
Forward charge vs. reverse charge mechanism
Under the standard forward charge mechanism, the mover collects GST from the customer and deposits it with the government. Under the reverse charge mechanism (RCM), the liability shifts to the recipient. For GTA services provided to GST-registered businesses, RCM provisions may apply. For household moves where the customer is an unregistered individual, forward charge is the standard.
Move Scenario | GST Applicability | Who Pays GST |
Full-service household shift (packing + transport + unloading) | 18% GST (composite supply) | Mover collects from customer under forward charge |
Transport-only service by GTA (no packing, consignment note issued) | 5% GST under GTA classification | Mover collects; or RCM applies if recipient is a registered business |
Individual household shift to unregistered mover | GTA services to unregistered persons: refer Entry 21A exemption check | Depends on mover’s registration status and consignment note issuance |
Office/commercial relocation by registered business | 18% GST (composite); ITC claimable by business | Forward charge; recipient business can claim ITC in GSTR-3B |
Packers and Movers HSN Code and GST Rate
In the GST system, services are identified by SAC (Services Accounting Code), which functions like the HSN (Harmonized System of Nomenclature) code used for goods. For packers and movers, two SAC codes are relevant — and the choice between them determines both the applicable GST rate and ITC eligibility.
| SAC / HSN Code | Service Type | GST Rate | ITC for Mover | ITC for Customer |
| 9965 | Goods transport services (GTA) — transport only. Customer handles packing. A consignment note must be issued. | 5% | Not available (mover cannot claim ITC at 5%) | Not available to any customer |
| 9966 | Full-service relocation: packing + loading + transport + unloading + unpacking. Composite supply. | 18% | Available (mover can claim ITC on packing materials, fuel, etc.) | Available only to GST-registered businesses; not to individual households |
What is a composite supply and why does it attract 18%?
Under GST law, when a service bundle includes multiple components that are naturally bundled together and one component is the principal supply, the entire bundle is taxed at the rate of the principal supply. For a full-service relocation, transportation is the principal supply — but when packing, loading, and unloading are included in the same contract, the entire service becomes a composite supply and is taxed at 18%.
This means a mover cannot split your invoice to show transport at 5% and packing at 18% when both services are provided under the same contract. The entire bill must be at 18% when any packing or labour service is included.
GST calculation example: full-service 2BHK shift
Scenario | Base Service Cost | GST Rate | GST Amount | Final Bill |
Transport only (GTA, SAC 9965) | ₹12,000 | 5% | ₹600 | ₹12,600 |
Full-service shifting (SAC 9966) | ₹12,000 | 18% | ₹2,160 | ₹14,160 |
Difference | — | — | ₹1,560 | ₹1,560 |
⚠ If a company offers full packing + labour + transport and claims 5% GST applies, that is either incorrect billing or deliberate misrepresentation. 18% is the legally correct rate for any composite supply that includes packing and labour. Do not accept a 5% GST invoice for a full-service shift.
Is ITC Available for GST on Packers and Movers Services?
Input Tax Credit (ITC) is the mechanism that allows GST-registered businesses to deduct the GST they paid on inputs from their GST liability on outputs. For packers and movers services, ITC availability depends entirely on who is using the service and for what purpose.
For individual households: ITC not available
Individual customers hiring packers and movers for personal household relocation cannot claim Input Tax Credit under any circumstances. The GST paid on the move is a final cost with no reclaim. This applies regardless of whether the mover charges 5% (SAC 9965) or 18% (SAC 9966).
For businesses: ITC may be available
Businesses and companies relocating offices or transporting business assets can claim ITC on GST paid to packers and movers, subject to specific conditions:
Condition | Requirement |
Service must be in furtherance of business | The relocation must relate to business operations, not personal use. An office shift qualifies; a director’s household shift does not. |
Valid GST invoice must be held | The invoice must include GSTIN, SAC code, taxable value, and GST breakdown. Without a valid invoice, ITC cannot be claimed in GSTR-3B. |
Mover must be GST-registered | ITC can only be claimed against supplies from GST-registered vendors. A mover without a valid GSTIN cannot provide a claimable invoice. |
The supply must appear in GSTR-2B | ITC can only be claimed after the mover files their GSTR-1 or GSTR-3B. The credit becomes visible in the recipient’s GSTR-2B portal. |
Not blocked under Section 17(5) of CGST Act | Personal household shifts are blocked credits under Section 17(5). Business office shifts are not blocked. |
Practical example: individual vs. business move
Individual (Ananya, household shift) | Business (XYZ Pvt. Ltd., office relocation) | |
Service cost | ₹20,000 | ₹50,000 |
GST at 18% | ₹3,600 | ₹9,000 |
Total paid | ₹23,600 | ₹59,000 |
ITC claimable? | No — personal use, not business | Yes — used in furtherance of business; claim ₹9,000 in GSTR-3B |
Effective cost | ₹23,600 | ₹50,000 (after ITC recovery) |
💡 If you are relocating a company office, ensure your mover is GST-registered with a valid GSTIN, and request an invoice with the GSTIN, SAC code 9966, itemised service breakdown, and CGST+SGST (or IGST) clearly shown. Only then can your accounts team successfully claim ITC.
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Frequently Asked Questions
It depends on the service type. Transport-only services (GTA, SAC 9965, with consignment note) attract 5% GST. Full-service relocation that includes packing, loading, transport, and unloading is classified as a composite supply under SAC 9966 and attracts 18% GST. For 90% of household moves, 18% applies. At Alliaance Packers And Movers, all full-service moves are billed at 18% GST, included in every written quotation.
5% applies only to transport-only (GTA) services where no packing or labour is included and a consignment note is issued. 18% applies to all full-service relocation. A mover claiming 5% GST for full packing + labour + transport is either misclassifying the service or misrepresenting the billing. 18% is the correct rate under composite supply rules.
Two SAC codes apply. SAC 9965 covers goods transport services (GTA) where only transportation is provided and a consignment note is issued — applicable GST rate is 5%. SAC 9966 covers comprehensive relocation services including packing, loading, transportation, and unloading — applicable GST rate is 18%. All full-service packers and movers should invoice under SAC 9966 with 18% GST.
Individuals relocating a household for personal reasons cannot claim ITC under any circumstances. The 18% GST paid is a final cost with no reclaim. Businesses and GST-registered companies relocating an office or transporting business assets can claim ITC, subject to conditions: the service must be in furtherance of business, a valid GST invoice with GSTIN and SAC code must be held, the mover must be GST-registered, and the supply must appear in GSTR-2B.
Ready to Move with a GST-Compliant Lucknow Mover?
Alliaance Packers And Movers is GST-registered in Uttar Pradesh, operating in Lucknow since 2013. Every booking includes a written fixed quote with 18% GST included, a proper GST invoice, and a pre-move condition report. Verify our GSTIN yourself before calling.