Lots of people are confused and want to know what the GST rate is charged by packers and movers companies? Is it 5%, 12% or 18%? If you are also confused, then read our blog from beginning to the end, it will clear all your doubts by the end.
Before reading this, let’s focus on what is GST?
GST is an Indirect tax that aims for replacing the other indirect taxes in India which are VAT, Service tax, excise duty, etc. The GST Act was implemented by the Government of India on July 1st, 2017.
There is a misinterpretation in people’s minds about the movers and packers rate under GST. In Social media, you will regularly see clients protesting about being fleeced with higher GST rates. They always question the GST rate for movers and packers is a simple 5%, yet commonly, they are charged 18%. Cargo Balaji packers and movers will explain everything to you in detail in this blog.
What is the real truth about it?
Here are the list of standard GST rates involves in logistics service:
5% GST is on Transportation service
18% GST is on Transit Insurance
18% GST is on Packing and moving service
Reality is the GST tax rate of packers and movers comes under the 18% GST slab.
Packers and movers companies also deal with transportation, they not only provide moving services but also they shift goods from one place to another place.
Let’s understand it with the help of an example, if you are shifting your household things in Pune and you are taking loading-unloading service, transport service, packing and rearranging service by logistics company, you see that you are using full services of packers and movers, thus in this case you have to pay 18% GST rate.
The 5% GST rate is applicable when clients only use transport of the packers and movers companies. If you are only availing transport service, then you should pay 5% GST, not 10%.
Cargo Balaji has been in the packers and movers business for the last 10 years and it always works to solve the problems of clients. We also provide all kinds of packing and moving services. Call us on +91 9672551039 to hire the best services in Pune city.