GST Applicable on Packers & Movers in Chandigarh: Everything You Should Know

Moving inside Chandigarh or coming in and going out of Chandigarh is not only about packing your belongings but also requires knowledge of taxes that apply to the service you are paying for. Goods and Service Tax (GST) directly impacts your bill from the packers and movers Chandigarh, and it is essential to know the details to prevent overpayment or confusion.

GST’s Applicability for Relocation Services

As the GST regime became applicable for India in July 2017, moving companies came under the ambit of GST service providers in the country. These service providers usually fall under the bracket of GTA (Goods Transport Agency). Different GST rates apply according to the kind of services provided. This is the point where most misunderstandings arise since most people think that there is one rate only for all services.

Two Important GST Rates

18% GST – Complete Service Relocation In case a firm is responsible for doing everything on your behalf, including packaging of goods, loading of goods in the vehicle, moving the goods to the new destination, offloading and unpacking of the goods, the service comes under the category of composite supply of services. Since the transportation service comes along with many other activities, the tax rate imposed by the government is 18% on the whole.

GST @ 5% – Service Only for Transport When all you need is someone to transport your cargo from one place to another and you manage the packing, loading and offloading yourself then you can get the lower rate of 5%. This has been termed as ‘Cargo Movement’ by many moving firms and it’s a great way to save on costs if you are prepared to do the hard work yourself.

18% on Transit Insurance If you choose to have your items insured during transit, the transit insurance aspect is taxed at 18% independently, irrespective of whether the service charge for the move is taxed at the normal or reduced rate.

As It Is Relevant to Chandigarh

Since Chandigarh is a UT, the breakup of GST on your bill would be a little different based on your move destination:

Local move from within Chandigarh: You will be levied CGST @ 9% + SGST/UTGST @ 9%.

From Chandigarh to some other state (such as Punjab, Haryana, or Delhi): In such cases, GST will not appear in two lines separately; instead, it will appear together as a combined IGST at 18%.

The bottom line is that the amount of taxation remains the same in any case. It’s just the way the taxes are listed in the bill that changes.

Where GST Doesn’t Come Into Play

There are certain cases where GST becomes irrelevant altogether. For instance, if you are relocating without the assistance of a professional packers and movers in Kharar , then no tax will be applicable because there is no taxable service provided. There can also be cases where the charge of the moving job is less than ₹1,500, and still, no tax is applicable.

Tips to Get a Proper GST Invoice

Request a GST invoice before you book your move. The legitimate mover should be able to provide an invoice clearly stating packing, transportation, and insurance costs.

Verify the GSTIN. Check the GST registration number of the mover company in the official portal to see if it is legitimate to charge GST.

Individuals cannot claim ITC on the GST paid. But businesses who want to relocate can apply for Input Tax Credit (ITC) on the amount of GST paid.

Transport-only rates can differ from the full-service packers and movers Chandigarh rate. You can opt for the transport-only service if you want to save money by doing some of the labor yourself.

These tips will help you understand how GST works and ensure that you get a legitimate GST invoice during relocation.