BILL FOR CLAIM

Many customers are unaware of how GST is correctly applied on packers and movers services. Some service providers incorrectly charge GST rates such as 0%, 5%, 12%, 18%, or even 28% without holding a valid GST registration number, which is against GST regulations.

The Goods and Services Tax (GST) was introduced in India on 1st July 2017, bringing a structured taxation system for relocation and transportation services. Below is a clear explanation of how GST applies to packers and movers bills and how it affects customers.

0% GST – Reverse Charge Mechanism (RCM)

Under the Reverse Charge Mechanism, GST is paid directly by the service recipient to the Government of India.

• Applicable only when the customer has a valid GST number

• Generally applies when only transportation services are used

• The packer and mover charges a flat service amount, without collecting GST

5% GST on Packers and Movers Bill

• Applicable when only transportation services are provided

• No packing, loading, unloading, or labour services involved

• GST rate: 5% without Input Tax Credit (ITC)

This rate is commonly used for simple transport-only invoices.

12% GST on Transport Services (Business Use)

• Applicable when transport services are provided to registered businesses

• Covers only transportation, not packing or labour

• If additional services like packing or loading are included, GST shifts to 18% on the full invoice value

18% GST on Packers and Movers Invoice (Standard Rate)

This is the correct and applicable GST rate for full-service packers and movers.

Includes:

• Dismantling

• Packing

• Loading & Unloading

• Transportation

• Insurance (if applicable)

As per Government of India rules, 18% GST is the standard rate for complete relocation services and is required for insurance and claim purposes.

28% GST – Not Applicable

• 28% GST is applicable only to luxury goods such as gold, silver, and premium lifestyle products

• Packers and movers services do NOT fall under this category

• Charging 28% GST for relocation services is illegal under GST law

Why Choose a GST-Compliant Packers and Movers Company?

An IBA-approved and GST-registered packers and movers service provider:

• Issues valid GST invoices

• Follows Government of India billing guidelines

• Ensures eligibility for insurance and claim settlements

• Protects customer interests in case of loss or damage

Customer Advisory

Always ensure that your packers and movers:

• Have a valid GST number

• Provide a proper GST invoice

• Apply the correct GST rate (usually 18%) for full-service shifting

This helps you stay compliant and secure your bill for claim requirements.