Gujarat waives off 80% stamp duty on property transfers by housing societies

In a notification issued late Monday, the government clarified that the benefit of the reduction would be applicable only to property transfers made “on or before” June 20, 2025, and no refund would be given in cases where the dues and penalties had been already paid before the notification was published.

The decision was taken following protests from certain quarters to the government’s April announcement, stating that penalties on unpaid duties had been hiked between four to six times on dues on property transactions.

According to Monday’s decision, in cases where societies, associations, and non-trading corporations carry out property transfers through allotment letters or share certificates, up to 80% of the payable duty will be waived. Thus, only about 20% of the original duty amount will be collected, a government release said.

As per the notification, in cases where after applying the 80% deduction on the deficit stamp duty amount, if the resulting duty and penalty chargeable under section 39 (1)(b) of the Gujarat Stamp Act, 1958, are less than the original amount payable, “then a minimum amount equal to the original chargeable stamp duty shall be recovered from the applicant”.

This section outlines the procedure for impounding an instrument for not being duly stamped.

The amendment has been made under the provisions of Section 9 (a) of the Gujarat Stamp Act, 1958, which gives the government power to reduce or remit stamp duty.

In April this year, the state government had announced certain revisions to “ensure effective implementation of stamp duty”. The order stated that if an applicant voluntarily paid up the shortfall in stamp duty, it would be recovered at two percent per month from the date of the registration “subject to a maximum of four times the unpaid amount”. In the cases where stamp duty evasion was identified, the government would recover six times the duty at 3% per month, according to the order effected from April 10.

By reducing the originally payable stamp duty, “the state government ensures that the total amount paid — including any penalties — will not exceed what was earlier payable as duty alone in property-related matters”, the government said. “The benefit of the reduction shall be applicable to those cases also which are voluntarily submitted for payment of the stamp duty or such other cases revealed during inspection, on or before the date of publication of this notification,” the document said.

An official close to the development told The Indian Express, “This (the April 10) decision became a jolt to people, especially small co-operative societies that had pending dues. These have now been relaxed for them.”

The government release stated that “financial burden that previously fell on the middle class in such transfer cases will now be significantly reduced”.

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