Regulatory & compliance · Domestic household goods
India
A legal business entity, registration as a common carrier under the Carriage by Road Act, 2007, and, for the company operating each truck, Motor Vehicles Act permits, registration, insurance, fitness and licensed drivers. GST registration and treatment depend on the business.
Regulated byBusiness registration through the Ministry of Corporate Affairs (MCA) or under the applicable state or central law for the chosen business form; GST (Goods and Services Tax) registration where the CGST Act requires it; registration as a common carrier under the Carriage by Road Act, 2007, with the State or Regional Transport Authority; vehicle permits (State Permit or National Permit), vehicle registration and fitness certification administered by state Regional Transport Offices (RTOs) under the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989; compulsory third-party motor insurance; consumer protection under the Consumer Protection Act, 2019
At a glanceRequirements at a glance
- Business Registration Required
- Yes. The mover needs one appropriate legal business form, for example a company under the Companies Act, 2013, a limited liability partnership (LLP), a partnership or a sole proprietorship. It does not need to register under every form. Registration under a state Shops and Establishments Act may also apply, depending on the state and the type of establishment. Udyam (MSME) registration is a separate registration a business may hold where it is eligible or wishes to; it is not an operating licence.
- GST Registration
- Depends on the business. Whether a mover must register for GST depends on the registration rules in the Central Goods and Services Tax (CGST) Act, 2017 (for example turnover thresholds and the kinds of supplies it makes), not simply on being a mover. Under GST, a “Goods Transport Agency” (GTA) is a person who provides a service in relation to transport of goods by road and issues a consignment note (a transport receipt, by whatever name called). Whether a mover is a GTA, and how its services are taxed, depends on its documents and services. GST relief also exists for some GTA services, including GTA services to an unregistered individual customer. Movers should take tax advice on their own position rather than assume one rate or charge basis applies to every move.
- Carriage by Road Act Registration (Common Carrier)
- Yes, where the business is a common carrier. The Carriage by Road Act, 2007 defines a “common carrier” broadly: a business collecting, storing, forwarding or distributing goods carried by goods vehicles for hire, including a booking company, contractor, agent, broker or door-to-door operator that uses other carriers. A new common carrier must hold a certificate of registration from the registering authority (the State Transport Authority or Regional Transport Authority) before it starts that business. A certificate is valid for ten years and can be renewed. (The Act’s 90-day and 180-day periods applied only to businesses already operating when the Act came into force; they are not a grace period for new movers.)
- Goods Vehicle Permit: Required Where Applicable
- Yes
- Yes, for the company that operates each goods vehicle. Under the Motor Vehicles Act, 1988, a transport vehicle used for hire needs a permit. A State Permit covers operation within the issuing state. A National Permit (Section 88(12)) allows operation across India; under the National Permit system in place since 2010, the holder pays a consolidated fee that is shared among the states, alongside the home-state authorisation. Where a mover subcontracts the trucking, the carrier’s own permit covers its vehicle, and the mover uses carriers that hold the permits required for the transport they perform. Subcontracting does not remove the mover’s own Carriage by Road Act registration duty where its business falls within the definition of a common carrier.
- State-Level Variation Is Real
- Yes. Permits, road tax and many vehicle rules are administered by each state’s Transport Department and its RTOs, and state rules can differ. See the state pages for Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana and Telangana.
- Vehicle Age Limits (National Permit)
- Where a National Permit applies. Available sources indicate that a goods vehicle must not be older than 12 years (15 years for a multi-axle vehicle) to remain eligible for a National Permit. These are National Permit conditions, not a general age limit for every moving vehicle.
- Vehicle Location Tracking (VLT) Device
- Depends on the vehicle category and state. The central rule requiring a vehicle location tracking (VLT) device and emergency (panic) buttons, Rule 125H of the Central Motor Vehicles Rules, applies to public service vehicles, which carry passengers. It is not a rule that every household goods truck must have a panic button. Separate rules require VLT devices meeting the AIS-140 standard on goods vehicles carrying dangerous or hazardous goods, and some states require them on National Permit goods vehicles. Check the rules for the actual vehicle and state.
- Fitness Certificate Required
- Yes, for each transport vehicle. A transport vehicle must have a valid fitness certificate. Government of India sources state that commercial vehicles are tested every 2 years up to 8 years of age, then every year. Keep the certificate valid and renew it when due.
- Vehicle Registration, Insurance and Drivers
- Yes. Each vehicle must be registered, must carry at least third-party motor insurance as the Motor Vehicles Act requires, and must be driven by a person holding a driving licence valid for that class of vehicle. These obligations sit with the company operating the vehicle.
- e-Way Bill: Required Where Applicable
- Only for some shipments, and only where the mover itself is the road transporter. An e-Way Bill is a GST document for moving goods, generated on the government e-Way Bill portal. It is generally required for movements of goods with a consignment value above ₹50,000 (the value of the goods, not the mover’s fee), and when goods are handed to a transporter for road transport, the transporter may need to generate it. Used personal and household effects are listed among the goods for which no e-Way Bill is required. A household move for a private customer therefore does not normally need one, but a mover transporting other goods by road (for example office or commercial goods for a business) should check whether one applies.
- Consumer Protection
- Yes. The Consumer Protection Act, 2019 governs consumer disputes, with a three-tier system of District, State and National Consumer Disputes Redressal Commissions. Complaints can also be made through the National Consumer Helpline. Customers may wish to ask a mover for its written terms, an inventory and condition record of their goods, and its claims procedure before the move; these are sensible questions to ask rather than requirements set out on this page.
- A Note on “IBA Approval”
- Not a government licence. Many Indian movers advertise “IBA approval.” The Indian Banks’ Association (IBA) is an association of banks, not a government authority. Its recommendation of transport operators is used by banks for staff relocations; it is not a transport licence, a business registration or a Carriage by Road Act registration, and it does not show that a mover meets the requirements on this page.
OverviewOverview & Scope
India does not license movers through a single national body. A mover needs a legal business form and, where it acts as a common carrier, registration under the Carriage by Road Act, 2007 with the State or Regional Transport Authority. The trucks themselves are governed by the Motor Vehicles Act, 1988: the company operating each vehicle must hold the right permit (a State Permit for work within one state, or a National Permit for work across states), and must keep the vehicle registered, insured and fit, with licensed drivers. Many movers subcontract the trucking; where they do, the carrier’s own permit and vehicle documents cover the vehicle, and the mover uses carriers that hold them. This does not replace the mover’s own registration as a common carrier where its business falls within the Act’s definition. GST registration and treatment depend on the business and its services, and are a matter for tax advice. Some vehicle rules, such as tracking devices and age limits, depend on the vehicle category, the type of permit and the state. Consumer protection runs through the Consumer Protection Act, 2019. One point often causes confusion: “IBA approval” is not a government licence.
RegistrationRegistration & Compliance Essentials
Movers must:
- Operate through an appropriate legal business form (company, LLP, partnership or proprietorship), with state Shops and Establishments registration where the state’s law applies to the establishment.
- Register for GST where the CGST Act requires it, and take advice on whether the business acts as a Goods Transport Agency and how its services are taxed.
- Hold a Carriage by Road Act certificate of registration before starting business as a common carrier, where the business falls within the Act’s definition (which includes arranging door-to-door carriage through other carriers), and renew it before it expires (certificates are valid for ten years).
- Where transport is subcontracted, use carriers that hold the licences and permits required for the transport they perform.
- Where the mover operates its own goods vehicles: hold the correct permit for each vehicle (State or National, as applicable, including any National Permit conditions); keep each vehicle registered, insured (at least third-party motor insurance) and with a valid fitness certificate; use only drivers licensed for the vehicle class; fit a VLT device where the vehicle category or state requires one; and follow the vehicle rules of each state of operation (see the state pages).
- Where the mover itself transports non-exempt goods by road that need an e-Way Bill (for example office or commercial goods with a consignment value above ₹50,000; used household effects are exempt), make sure a valid e-Way Bill accompanies the goods and generate or update it as the rules require of the transporter.
- Deal with consumers in line with the Consumer Protection Act, 2019.
- Retain the records the law requires for the required periods, including business registration, GST and Carriage by Road Act registration records and, where the mover operates its own vehicles, permit, vehicle registration, insurance and fitness documents.
ChecklistCompliance checklist
Company licensing
- Business registered in an appropriate legal form (company, LLP, partnership or proprietorship)Verified by DocumentRequired
- State Shops and Establishments registrationWhere applicable (the state's law applies to the establishment)Verified by DocumentRequired
- GST registrationWhere applicable (the CGST Act requires the business to register)Verified by DocumentRequired
- Carriage by Road Act certificate of registration, held before starting business as a common carrier and currentWhere applicable (the business falls within the Act's definition of a common carrier, including a mover arranging door-to-door carriage through other carriers)Verified by DocumentRequired
Subcontracted transport
- Where transport is subcontracted, the mover uses carriers that hold the licences required for the transport they performWhere applicableVerified by AffirmationRequired
Vehicles and drivers (where the mover operates its own vehicles)
- Goods vehicle permit (State or National, as applicable) for each vehicleWhere applicable (mover operates its own vehicles)Verified by DocumentRequired
- Vehicle registration currentWhere applicable (mover operates its own vehicles)Verified by DocumentRequired
- Third-party motor insurance currentWhere applicable (mover operates its own vehicles)Verified by DocumentRequired
- Fitness certificate valid for each transport vehicleWhere applicable (mover operates its own vehicles)Verified by DocumentRequired
- Drivers hold a licence valid for the vehicle classWhere applicable (mover operates its own vehicles)Verified by DocumentRequired
- VLT device fittedWhere applicable (mover operates its own vehicles and the vehicle category or state requires one)Verified by DocumentRequired
- Vehicles meet the vehicle rules of each state of operation (see the state pages)Where applicable (mover operates its own vehicles)Verified by AffirmationRequired
Customer practices
- Dealings with consumers comply with the Consumer Protection Act, 2019Verified by AffirmationRequired
- e-Way Bill accompanies the goods, generated or updated by the mover as transporterWhere applicable (the mover itself transports by road non-exempt goods that need one, for example office or commercial goods with a consignment value above ₹50,000; not used household effects)Verified by AffirmationRequired
Records
- Registration, GST, permit, vehicle, insurance and fitness records retained for the periods the law requiresVerified by AffirmationRequired
