Gujarat to waive up to 80 pc stamp duty for eligible MSME GIDC plot transfers

Gandhinagar, Sep 1 (IANS) Gujarat has decided to waive up to 80 per cent of stamp duty on eligible past transactions involving industrial plots and sheds held by micro, small and medium enterprises (MSMEs) under a proposed GIDC Amnesty Scheme, easing a long-standing financial and legal burden on current plot holders.

The decision, announced by the state government on Tuesday, follows representations from entrepreneurs and associations of the Gujarat Industrial Development Corporation (GIDC) over outstanding stamp duty arising from earlier transfers of industrial properties.

The scheme is aimed at resolving such legacy cases while requiring current allottees to complete the legal registration of the properties.

Under the arrangement, eligible MSME units with a valid Udyam Registration Certificate will have to pay only 20 per cent of the applicable stamp duty along with the applicable penalty, subject to a safeguard that the amount recovered will not be lower than the original stamp duty payable.

The issue stems from past GIDC transactions in which industrial plots or sheds were transferred through allotment letters or supplementary agreements instead of registered lease deeds.

In several cases, the applicable stamp duty was not paid at the time of earlier transactions.

The burden could subsequently fall on the current owner when a lease deed was required for obtaining a loan or meeting other requirements.

Under amendments to the Gujarat Stamp Act, 1958, effective from April 10, 2025, voluntarily presented instruments can attract simple interest of two per cent of the deficient stamp duty for every month from the date of execution, besides a penalty of up to four times the deficient duty.

Where an instrument is impounded following government inspection, the interest rate is three per cent a month, and the penalty can be up to six times the deficient duty.

The government said the amnesty would cover eligible transactions involving allotment letters, share transfers, lease or sub-lease transactions and other qualifying property transfers carried out up to June 30, 2025.

For transfers made before January 1, 2018, the proposed 80 per cent relief will be calculated on the stamp duty determined based on the market value fixed for the instrument relating to the last of the earlier transfers.

The remaining 20 per cent duty and applicable penalty will be recovered. For transfers on or after January 1, 2018, where stamp duty remains recoverable, 80 per cent relief will similarly be provided on the applicable duty, with 20 per cent and the applicable penalty payable.

The scheme will also provide a route for eligible cases pending in appeals. Where an appeal has been filed before the competent authority, and the prescribed 25 per cent amount has been deposited, the benefit may be available subject to the scheme’s conditions.

In cases where a petition has been filed before a court, eligible applicants may avail themselves of the relief after withdrawing the petition.

The state government said current allottees seeking the concession will be required to pay the applicable duty and penalty and complete mandatory legal registration of the property.

This is intended to address outstanding liabilities while bringing previously unregistered property transactions into the formal registration system.

The decision is part of the government’s efforts to simplify procedures and address difficulties of the industry in completing property transactions. GIDC continues to operate industrial estates and MSME parks across the state.

The government said the scheme would reduce the financial burden created by previous transactions, help resolve long-pending stamp duty cases and facilitate regularisation of property records for eligible MSME plot holders.

–IANS

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