In September 2025, the Government of India introduced a major overhaul of the GST system. Gone are the old 12% and 28% tax slabs. Now, the simplified structure includes:
- 5%- for essential goods and services
- 18%- standard rate for most items and services
- 40%- exclusive to luxury or sin products
These changes took effect on September 22, 2025, marking a new chapter in India’s tax system.
Freight Services: GST Slashed to 5%
One of the biggest impacts on the moving industry: the “freight concession” rate for multimodal logistics (excluding air) has dropped from 12% to 5%.
This means:
- Lower GST on intra-city and inter-city trucking
- Reduced costs for shifting companies
- Potential savings for customers
3. What About Packers & Movers- Still 18%
Yes, the GST on full-service moving (including packing, loading, transporting, unloading, unpacking, and insurance) remains at 18%, categorized as a composite supply.
- If you only pay for transportation, no packing or unpacking, the GST rate could be 5%.
- Transit insurance alone attracts 18% GST.
New GST Regulations on the Moving Industry
Why the Difference?
GST rules view moving services either as:
- Goods Transport Agency (GTA) services—just transport, taxed at 5% (no Input Tax Credit, ITC).
- Composite moving services include full packaging and handling. That remains 18% GST and allows ITC for businesses.
MRP Relief: Time to Adjust Packaging Costs
The government allows companies, especially those handling packaged goods, to apply revised MRPs on unsold stock to reflect GST changes. They can continue using the old packaging until December 31, 2025, or until their existing stock is depleted.
What This Means for the Movement Sector
- Lower GST on freight fuels costs efficiency, especially for logistics firms and self-packers.
- Returning to 18% GST for fully managed moves ensures proper accounting of material and labor investment.
- Clients will benefit from improved transparency in invoicing.
Quick Table: GST Rates for Moving Services
| Service | GST Rate | ITC Eligible? |
|---|---|---|
| Full-service moving (packing, loading, etc.) | 18% | Yes (business) |
| Transportation only (GTA) | 5% | No |
| Transit insurance | 18% | Yes (business) |
| Freight segment (multimodal) | 5% | Varies |
The GST 2.0 reform simplifies tax burdens and makes moving services clearer. As:
- Freight becomes cheaper at 5%,
- Full move packages stay at 18%,
- And outdated tax slabs-12%, 28%-are gone,
- Businesses get time to adjust packaging and MRPs,
…it’s the perfect moment to compare movers smartly and verify invoices to ensure correct GST application.
