Topic : Understanding Moving Company GST Scams: What Consumers Need to Know

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With every relocation, entering into a packing and moving company is important for convenient and stress-free shifting. But with so much expansion, an alarming number of GST robberies by moving companies also increased. Consumers lose their money at deceptive fireworks of prices and fake tax invoices, thus, losing their happiness and peace of mind. One needs to understand how GST on packers and movers work and how fraudsters exploit it to safeguard oneself. So, let’s find out what all these details are about.

What is GST on Packers and Movers?

Goods and Services Tax (GST) is a tax imposed on the supplies of goods and services in India. When packers and movers are hired, GST is charged on services like:

. Packing and unpacking

. Loading and unloading

. Transportation

. Insurance (if any)

Standard GST Rates:

18% GST is generally attributed to the whole-service package where packing, moving, and transport are all bundled.If it is only transportation offered to the customer by way of these packers and movers i.e. as Goods Transport Agency (GTA), 5% GST may be leviable in certain cases under reverse charge mechanism.

Important: Based upon the service provided, the amount of GST charged should be appropriate and a copy of valid GSTIN (Goods and Services Tax Identification Number) should be obtained from that company.

Common GST Scams by Packers and Movers

1. Fake GST Charges

Many fraudulent companies add 18% GST to your bill without being registered for GST. They collect the tax but do not pay it to the government, effectively pocketing the extra amount.

2. Bogus GSTINs

Scammers often use fake GSTINs or someone else’s valid GST number. Consumers who don’t verify it end up unknowingly participating in tax evasion.

3. No Tax Invoice

Some companies give only handwritten or basic receipts, with no GST breakdown or proper invoice. This is a red flag. Without a valid invoice, you have no legal proof of tax payment.

4. Changing GST Rates

Scammers may first quote a low rate (5%) but then inflate it to 18% at billing time, claiming “new rules” or “government updates.”

How to Avoid Moving Company GST Scams

 1. Check GSTIN

Always ask the company for its GSTIN and verify it on the official GST portal. It will show the business name, registration status, and services covered.

 2. Request a Proper Tax Invoice

Ensure you get a GST-compliant invoice that includes:

  • GSTIN
  • Tax breakdown (CGST, SGST, or IGST)
  • Service description
  • Company address

 3. Compare With Competitors

Get quotes from multiple companies. If one provider offers suspiciously low prices with a high GST, it could be a trap.

 4. Avoid Cash Transactions

Pay through bank transfers, UPI, or cards to ensure traceability. Cash payments are harder to track and offer no protection.

 5. Read Reviews & Ratings

Research the company online. Look for customer feedback on platforms like Justdial, Google Reviews, or Trustpilot. Be cautious if many customers report issues with billing or GST.

Legal Actions You Can Take

If you suspect fraud related to GST on packers and movers, you can:

  • File a complaint with the GST department via the official portal
  • Report to consumer helplines like 1800-11-4000 (National Consumer Helpline)
  • Leave a detailed review online to warn others

Final Thoughts

Understanding how GST on packers and movers works is crucial to avoid scams and ensure a legitimate, transparent moving experience. Always verify GST details, demand proper invoices, and never fall for extremely low quotes that sound too good to be true.

By staying informed and cautious, you can move with peace of mind — without becoming another victim of the rising GST scams in the logistics industry.

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