A government transfer often involves more than simply travelling from one posting to another. An employee may have to move the family, pack an entire household, transport furniture and appliances, arrange a vehicle, vacate government accommodation and establish a new residence at the next station.

For eligible Central Government employees, Composite Transfer Grant (CTG) forms an important part of the Travelling Allowance available on transfer.

Under the Seventh Central Pay Commission-related Travelling Allowance rules issued by the Department of Expenditure, CTG is generally payable at 80% of the employee’s last month’s basic pay when a transfer involves a change of station situated at least 20 km away. Special provisions apply to shorter transfers, transfers involving both spouses and transfers to or from specified island territories.

However, CTG is only one component of Transfer TA. Travel for the employee and eligible family members, transportation of household goods and transportation of an eligible vehicle are dealt with separately under the applicable rules.

This guide explains how Composite Transfer Grant works, how to calculate it, what happens when the new posting is less than 20 km away, the special retirement rules, documents you should retain and common mistakes that can create problems during a transfer claim.

Important: This article primarily explains the Department of Expenditure rules applicable to civilian Central Government employees. Railway employees, Defence personnel, State Government employees, PSUs, banks and autonomous organisations may be governed by separate or adopted rules. Always check the transfer order, service rules and instructions issued by your own department or employer before making financial decisions.

Composite Transfer Grant at a Glance

Situation	CTG under Central Government rules
Transfer to station 20 km or more away	80% of last month’s basic pay
Transfer to station less than 20 km away	One-third of normal CTG, if change of residence is actually involved
Transfer within the same city	One-third of normal CTG, if change of residence is actually involved
Transfer to/from Andaman & Nicobar Islands or Lakshadweep	100% of last month’s basic pay
Retirement with actual change of residence	Full 80% CTG under revised 2022 rule, irrespective of the earlier 20 km condition
Retirement involving specified island territories	100% of last month’s basic pay

The normal serving-employee provisions come from the Department of Expenditure’s 13 July 2017 Travelling Allowance order. Retirement rules were subsequently modified through an Office Memorandum dated 6 January 2022.

What Is Composite Transfer Grant?

Composite Transfer Grant, commonly called CTG, is a lump-sum transfer-related entitlement intended to cover transfer incidentals and packing-related expenses when an eligible employee has to relocate because of an official transfer.

The Department of Expenditure describes Transfer TA as having four components:

Travel entitlement for the employee and eligible family members
Composite Transfer and Packing Grant (CTG)
Reimbursement for transportation of personal effects
Reimbursement for transportation of conveyance

This distinction is extremely important. Your CTG amount is not the maximum amount available for transporting your household goods. Household-goods transportation reimbursement is a separate component subject to the employee’s entitlement and applicable rules.

Employees planning a government relocation can also read our detailed guide to 7th Pay Commission transfer rules for the broader Transfer TA framework.

How Much Composite Transfer Grant Is Admissible?

For a normal eligible transfer involving a change of station located 20 km or more from the old station, CTG is paid at:

CTG = 80% × Last Month’s Basic Pay

For transfer to or from the island territories of Andaman & Nicobar Islands and Lakshadweep, the rate is 100% of the last month’s basic pay.

Example 1: Basic Pay of ₹60,000

If an employee’s last month’s basic pay is ₹60,000 and the eligible new station is 20 km or more away:

₹60,000 × 80% = ₹48,000

The normal CTG would therefore be ₹48,000.

Example 2: Basic Pay of ₹75,000

₹75,000 × 80% = ₹60,000

Normal CTG = ₹60,000

If the qualifying transfer were to or from the specified island territories where 100% CTG applies:

₹75,000 × 100% = ₹75,000

These figures illustrate CTG only. They do not represent the employee’s entire Transfer TA entitlement.

Which Salary Components Are Used for CTG Calculation?

CTG is calculated using the employee’s last month’s basic pay, not gross monthly salary.

The 7th CPC Travelling Allowance order explains that “Pay in the Level” refers to basic pay drawn in the applicable Pay Matrix level and does not include amounts such as NPA, Military Service Pay or other special pay. The CTG provision itself specifically states that NPA and MSP are not included while determining CTG entitlement.

Therefore, do not calculate CTG by simply taking 80% of:

Gross salary
Basic Pay + DA
Basic Pay + HRA
Basic Pay + Transport Allowance
Total monthly earnings

For most employees covered by these rules, the starting figure is the applicable last month’s basic pay.

Does Dearness Allowance Increase the CTG Amount?

Not directly.

The normal CTG formula remains a percentage of basic pay, rather than Basic Pay + DA.

This is different from certain other transfer-related rates. For example, the 2017 rules state that prescribed rates for transportation of personal effects increase by 25% whenever DA increases by 50%. Central Government DA reached 60% of basic pay with effect from 1 January 2026.

This is another reason not to mix up CTG with household-goods transportation reimbursement.

What Happens When the New Station Is Less Than 20 km Away?

For a serving employee transferred to another station located less than 20 km from the old station, one-third of the normal Composite Transfer Grant is admissible provided an actual change of residence is involved.

The same provision applies to a transfer within the same city.

Example

Suppose last month’s basic pay is ₹60,000.

Normal CTG:

₹60,000 × 80% = ₹48,000

One-third CTG:

₹48,000 ÷ 3 = ₹16,000

Therefore, an eligible short-distance or same-city transfer involving an actual change of residence would give an illustrative CTG of ₹16,000.

What if There Is No Change of Residence?

The general conditions governing Transfer TA remain important. Government training material explaining SR 114 notes that TA on transfer is connected with transfer for public convenience and that no TA is admissible where no change of residence is involved.

This can become particularly relevant for “station transfers” where an employee’s office changes but the family residence does not.

Important: The Retirement CTG Rule Is Different

This is one of the most important areas where older articles can mislead employees.

Under the original 2017 rules, a retiring employee settling at the last station of duty or within 20 km was ordinarily allowed only one-third CTG where a change of residence was involved.

That retirement rule was modified on 6 January 2022.

The Department of Expenditure removed the 20 km condition for Central Government employees settling after retirement. Under the revised rule, a retiring employee who actually changes residence can receive full CTG at 80% of the last month’s basic pay, whether settling at the last station of duty or elsewhere.

The employee must submit the prescribed self-declaration certificate confirming the change of residence.

So do not apply the serving-employee “<20 km = one-third CTG” formula automatically to a retirement relocation.

For more retirement-specific planning, see our guide to retirement moving entitlements.

CTG for Husband and Wife When Both Are Government Employees

Special rules apply when both spouses are transferred.

Under the 2017 order, where the transfer of husband and wife takes place within six months but the second transfer takes place after 60 days of the spouse’s transfer, 50% of the transfer grant may be allowed to the spouse transferred later.

If both transfers are ordered within 60 days, no transfer grant is admissible to the spouse transferred later under this provision. For transfers six months or more apart, the existing applicable provisions continue.

Employees in this situation should avoid assuming that both spouses automatically receive two full CTGs. Give both transfer orders to the establishment/accounts section and have the entitlement confirmed before filing the claims.

Is CTG Admissible on an Own-Request Transfer?

Not necessarily.

The Department of Expenditure’s 2017 order specifically preserves existing provisions that preclude transfer grant in cases of transfer at one’s own request or transfer other than in public interest.

Therefore, an employee should first establish whether the transfer has been treated as an eligible transfer for TA purposes.

Do not assume that every posting change gives an automatic right to 80% CTG.

The wording of the transfer order and the applicable service rules matter.

Is CTG the Same as Transfer TA?

No.

Transfer TA is the broader entitlement. CTG is one component of it.

For eligible Central Government transfers, Transfer TA can potentially include travel entitlement, CTG, personal-effects transportation and transportation of an eligible conveyance.

This distinction is particularly important when estimating how much of a household move may be reimbursed.

A ₹50,000 CTG, for example, does not necessarily mean that your packers-and-movers bill must fit within ₹50,000.

Household Goods Transportation Is Separate from CTG

The 7th CPC order separately prescribes entitlement for transporting personal effects.

The original 2017 schedule provided the following train/steamer weight entitlements:

Pay Level	Personal-effects entitlement
Level 12 and above	6,000 kg / specified wagon or double-container entitlement
Levels 6–11	6,000 kg / specified wagon or single-container entitlement
Level 5	3,000 kg
Level 4 and below	1,500 kg

For road transport, the original schedule prescribed per-kilometre rates and stated that these rates would rise by 25% whenever DA increased by 50%. Claims for transportation of personal effects are subject to the production of actual receipts/vouchers.

Because these reimbursement rates can be affected by later DA thresholds and departmental implementation, an employee should check the currently applicable rate with the accounts/administration section rather than relying on an old ₹/km table found online.

Can a Car or Bike Be Claimed Separately?

The transfer rules also contain a separate provision for transportation of conveyance.

Under the 2017 Central Government schedule:

Pay Level 6 and above: entitlement can extend to one motor car or one motorcycle/scooter, subject to applicable conditions.
Pay Level 5 and below: entitlement is for one motorcycle/scooter/moped/bicycle, subject to applicable conditions.

This again is separate from CTG.

Employees relocating a vehicle from Trichy can read our guide to car and bike transport in Trichy while checking the admissible reimbursement with their department.

Does CTG Require a Packers and Movers Bill?

This needs a careful distinction.

CTG itself is a lump-sum grant. The official CTG paragraph fixes entitlement according to basic pay and transfer circumstances.

However, reimbursement for transportation of personal effects is a separate Transfer TA component, and the 2017 order expressly requires actual receipts/vouchers for that reimbursement.

Therefore, even if a packers-and-movers invoice is not what determines the mathematical CTG amount, keeping proper moving documentation is extremely important when the employee is also claiming household-goods transportation charges.

Useful relocation paperwork can include a GST invoice, transport receipt/consignment note, packing list and payment evidence, depending on the employer’s requirements.

Read our detailed guide to GST invoice, LR and packing-list documentation before the move.

Documents to Keep for a CTG and Transfer TA Claim

There is no single universal document checklist applicable to every Central Government department, PSU, Railway unit, State Government organisation or bank.

However, an employee preparing a transfer claim should normally organise the documents relevant to their particular claim, such as:

Transfer/posting order
Relieving order or relieving certificate
Joining report/joining certificate
Departmental TA/Transfer TA claim form
Basic-pay or salary details where requested
Travel tickets and supporting journey records
Family travel documents where family journey is claimed
Packers-and-movers GST invoice
Consignment note/LR/transport receipt
Itemised packing list
Payment receipt or accepted proof of payment
Vehicle-transport documents if conveyance transportation is claimed
Required declarations or certificates
Retirement change-of-residence self-declaration where applicable

The exact checklist should be confirmed with your administration, establishment, HR, DDO or accounts section.

For a more detailed paperwork checklist, see government transfer documents required for relocation.

Retirement CTG Requires a Change-of-Residence Declaration

For retirement cases covered by the January 2022 amendment, the employee must submit a self-declaration certificate regarding change of residence.

The prescribed format asks the retired employee to declare that residence has been changed from the former address to the new address for settlement after retirement.

This requirement should not be confused with a mover’s commercial documents.

The retirement declaration establishes the qualifying change of residence, whereas the mover’s invoices and receipts support transportation-related expenditure where such reimbursement is claimed.

How Long Do You Have to Submit a Transfer TA Claim?

For normal tour, transfer and training TA claims, the Department of Expenditure prescribed a 60-day limit. The updated General Financial Rules also state that a Government servant should submit a Travelling Allowance claim within 60 days of it becoming due, failing which it ordinarily stands forfeited.

For transportation of personal effects and conveyance, the 2018 instruction states that the 60-day period is reckoned from the date on which they are actually delivered to the Government servant at the new station.

Retirement Claims Get More Time

A separate Department of Expenditure order dated 15 June 2021 increased the time limit for TA on retirement from 60 days to 180 days (six months) from completion of the journey. The 60-day limit for normal tour, transfer and training claims remained unchanged.

This is an important distinction:

Serving employee transfer: normally 60 days
TA on retirement: 180 days

Do not leave preparation of the claim until the final week.

Common Reasons a Transfer Claim Runs Into Problems

A valid entitlement can still become difficult to process when the supporting file is incomplete or inconsistent.

Typical practical problems include the employee’s name differing across documents, incorrect origin or destination details, missing transport receipts, invoices that do not clearly describe the service, missing payment evidence, lack of an itemised packing list where the office expects one, filing after the prescribed period or claiming an amount under the wrong component of Transfer TA.

Another frequent mistake is treating CTG, household-goods transport reimbursement and journey fare as the same allowance.

They are not.

If your claim has already been returned or queried, our guide on government transfer claim rejection explains what to check before resubmitting it.

CTG and Packers and Movers Charges Are Not the Same Thing

The cost quoted by a relocation company is based on the actual move: household volume, packing material, labour, distance, truck size, floors, lift access, dismantling requirements, insurance if selected and any special handling.

CTG, by contrast, is a government entitlement calculated according to applicable service rules.

Therefore:

Moving cost ≠ CTG amount

and

CTG amount ≠ total Transfer TA entitlement

Employees should first get an accurate moving quotation and separately establish what their department will reimburse.

For practical moving-price guidance, read our packers and movers charges in Trichy.

Why a Proper Moving Quotation Matters Before a Government Transfer

Before booking a mover, ask for a written quotation clearly showing the origin, destination, goods or estimated volume, packing, loading, transportation, unloading, taxes and any other agreed services.

If your department has a prescribed format, approved-vendor requirement or quotation procedure, obtain that requirement before selecting the mover.

A good quotation helps you compare the actual relocation cost against your admissible reimbursement instead of assuming the government will reimburse every amount charged.

See our dedicated guide to government moving quotation and bill requirements.

Central Government Rules Do Not Automatically Apply to Every PSU or State Employee

This distinction deserves special attention.

The July 2017 Department of Expenditure OM deals with Travelling Allowance entitlements of civilian employees of the Central Government and expressly notes that separate orders would be issued for Armed Forces personnel and Railway employees.

Therefore, employees of:

BHEL and other PSUs
Indian Railways
Defence services
Tamil Nadu Government
Public-sector banks
Insurance companies
Autonomous institutions

should not assume that every Central Government CTG provision applies unchanged to them.

Some employers may adopt similar rules, but reimbursement limits, approved transporter conditions, forms and documentation can differ.

BHEL employees can see our BHEL employee transfer guide, while Railway staff can refer to our Southern Railway Trichy transfer guide.

Is Composite Transfer Grant Tax-Free?

Income-tax Rule 2BB specifically explains that an allowance to meet the cost of travel on transfer includes sums paid in connection with transfer, packing and transportation of personal effects. Transfer-related official-duty allowances fall within the framework of Section 10(14)(i), subject to the applicable conditions and extent of eligible expenditure.

Employees should therefore avoid assuming that every rupee received under every employer’s relocation scheme is automatically tax-exempt in every circumstance. Where the tax treatment materially affects your return, confirm it with your payroll section or tax adviser.

Composite Transfer Grant Checklist Before Moving

Before your transfer date, confirm four things with your department:

Entitlement: Is the transfer eligible for Transfer TA and CTG?

Amount: What was your last month’s basic pay, and does the normal 80%, one-third or special rule apply?

Reimbursement: What household-goods and vehicle transportation entitlement applies to your pay level?

Documents: What invoices, receipts, forms, declarations and payment evidence does your department require?

If your posting has come at short notice, use our short-notice government transfer guide and government transfer packing list to organise the move alongside the office paperwork.

Composite Transfer Grant FAQs

What is the full form of CTG in a government transfer?

CTG stands for Composite Transfer Grant, also described in the 7th CPC TA order as Composite Transfer and Packing Grant. It forms part of Transfer Travelling Allowance.

How much CTG is allowed under the 7th CPC?

For an eligible Central Government transfer involving stations at least 20 km apart, CTG is normally 80% of the employee’s last month’s basic pay.

Is DA included while calculating CTG?

CTG is calculated on the applicable last month’s basic pay, not Basic Pay plus DA.

What is CTG for a transfer of less than 20 km?

For a serving employee, one-third of normal CTG can be admissible for a transfer to a station less than 20 km away or within the same city, provided an actual change of residence is involved.

Is 20 km itself eligible for full CTG?

Yes. The official rule uses “20 kms or more”, so a qualifying change of station at 20 km falls within the normal 80% provision.

Is full CTG available when retiring in the same city?

Under the revised Central Government retirement rule effective from 6 January 2022, the earlier 20 km condition was removed. Full CTG at 80% can be admissible where an actual change of residence takes place, including settlement at the last station of duty. A prescribed self-declaration is required.

Is a packers-and-movers bill required for CTG?

The CTG rate itself is a lump-sum entitlement determined under the applicable rules. However, transportation of household goods is a separate reimbursement component, for which actual receipts/vouchers are required under the Central Government transfer rules.

Are household-goods transport charges included inside CTG?

No. Transportation of personal effects is separately listed as one of the four components of Transfer TA.

Can both husband and wife claim full CTG if both are transferred?

Special spouse-transfer rules apply depending on how far apart the two transfers occur. Where the second transfer is after 60 days but within six months, 50% transfer grant may be allowed to the spouse transferred later; where both transfers are ordered within 60 days, no transfer grant is admissible to the spouse transferred later under this provision.

Is CTG available for an own-request transfer?

Not automatically. Existing rules precluding transfer grant for transfers at one’s own request or other than in public interest continue to apply.

What is the deadline for a government transfer TA claim?

The normal time limit for TA on transfer is 60 days. For TA on retirement, a 2021 order increased the limit to 180 days.

Government Transfer Relocation Services in Trichy

For employees relocating into or out of Tiruchirappalli, the practical challenge is not only packing the household safely but also retaining clear documentation for the relocation claim.

Mahalaxmi Packers & Movers provides household and government-transfer relocation services in Trichy and states that its transfer documentation can include GST invoices, packing lists, consignment notes and transportation/payment records. Because requirements vary between departments, employees should share their employer’s document checklist before the move.

For complete relocation assistance, visit our Packers and Movers in Trichy page or the Mahalaxmi Packers & Movers homepage.

Call: 9894694320

Tell our team that your move is connected with a Government, Railway, PSU, bank or employee transfer while requesting the quotation so the required moving paperwork can be discussed before packing begins.

Final Takeaway

The biggest mistake in understanding Composite Transfer Grant is treating CTG as the entire government relocation reimbursement.

For eligible civilian Central Government employees, normal CTG is generally 80% of the last month’s basic pay for a qualifying transfer of 20 km or more. A same-city or less-than-20-km serving-employee transfer can attract one-third CTG where an actual residence change is involved, while the 2022 retirement amendment allows full 80% CTG after retirement where residence is actually changed, without the earlier 20 km restriction.

Travel for the employee and family, household-goods transportation and eligible vehicle transportation are separate components. Keep your transfer order, joining/relieving records, bills, transport documents and departmental forms organised, and confirm your employer’s exact rules before booking the move.

The Department of Expenditure’s current Travelling Allowance repository continues to list the 7th CPC transfer instructions together with the later retirement CTG clarification as the relevant CTG instructions.