GST on Packers and Movers: Applicability, HSN code and GST Rate

Understanding the different GST rates for various industries remains a constant challenge, and one such intricate area is the field of packers and movers. In this blog post, we will discuss the GST on packers and movers in detail. We'll also explore the packers and movers' GST rates for different scenarios.

Applicability of GST on packers and movers

Packers and movers in India, classified as Goods Transport Agencies, are subject to GST regulations, with movers handling transportation and packers focusing on labour services. Some scenarios, such as transporting goods independently or using inland waterways, qualify for GST exemption. Furthermore, the movement of goods by registered packers and movers charging under Rs. 1,500 is also GST-exempt.

Packers and movers HSN code and GST Rate

Packers and movers' HSN code is 8431, and their GST classification comes under Goods Transport Agencies. To understand the applicable GST rates better, take a look at the table below:

Is ITC available on GST on packers and movers?

ITC availability on GST for packers and movers services depends on usage. For individuals availing these services for personal relocation purposes, the option to claim ITC is not applicable. This limitation contrasts businesses and companies, which, under specific circumstances such as in furtherance of supply subject to conditions, might be eligible to claim ITC on GST incurred for packers and movers services.

Frequently Asked Questions

What is GST impact on packers and movers?

GST simplifies taxation by replacing multiple taxes. Packers and movers are subject to varying GST rates based on services and goods categorisation.

What are the GST rates for movers and packers?

GST rates for movers and packers range from 5% to 18%, depending on the services, like transportation, packing, and insurance.

Is Input Tax Credit available for packers and movers GST?

Input Tax Credit eligibility depends on the chosen GST rate. Opting for a 5% cargo movement rate restricts ITC claims.

When is GST exempted for packers and movers?

GST exemptions apply if goods are moved without the help of professional services or via inland waterways. Also, services under Rs. 1,500 by registered movers are exempt.