Gujarat likely to reduce stamp duty, registration fee through finance bill

Even as the Gujarat government will implement revised jantri rates from April 15, it is actively considering a proposal to reduce stamp duty and registration fee on purchase of properties, top sources in state government said.

A finance bill listing out revised stamp duty and registration fee rates is expected to be introduced in the budget session of the Gujarat assembly, which begins later this month.

Reduction in stamp duty and registration fee has been a long-standing demand of the real estate sector, which has made several representations to the government over this concession.

At present, property registration attracts a stamp duty of 4.9% and a registration fee of 1%. Female buyers are exempt from the 1% registration fee.

The real estate sector has been demanding a marked reduction of stamp duty from 4.9% to 1% in the affordable housing segment in the first allotment from the developer to the buyer.

According to Credai Gujarat, the affordable housing segment (houses worth Rs 25 lakh to Rs 75 lakh) will get a big boost if this demand is accepted.

Besides, Credai has been seeking a 50% reduction in stamp duty and registration fee in all housing segments.

An expert committee chaired by former union finance secretary Hasmuukh Adhia had also recommended reducing stamp duty and registration fees rates to boost housing demand.

Government revenue from stamp duty and registration fee recorded a healthy 19% rise in 2022 as compared to the previous year.

The number of properties registered in 2022 in the state stood at 15,97,188, 11% higher than 14,29,607 properties that were registered in the state in the preceding calendar year.

Government revenue from stamp duty and property registration also shot up from 7,337.9 crore in 2021 to 8,769 crore in 2022.