INTRODUCTION
The Gujarat Stamp (Amendment) Act of 2025, received the assent of the Governor on April 2nd, 2025 and came into effect across the state on April 10, 2025, shows a significant revision to the Gujarat Stamp Act of 1958, with the objective of bringing stamp duty regulations up to date with modern economic and administrative requirements. Enacted in India’s 76th year as a Republic, this Act alters stamp duty charges for different documents, introduces fresh classifications, and amends highest limits to align with present financial circumstances. The Finance Minister Balvantsinh Rajput announced changes in the Gujarat Legislative Assembly on February 20, 2025, aiming to improve revenue collection and adapt to changes in business practices such as public-private partnerships and corporate restructuring. This article explores the key amendments to stamp duty rates, providing a clear overview of how the landscape has shifted before and after the amendments.
Table Showing Stamp Duty Rates in Gujarat
| Article No. | Description | Existing Stamp Duty |
Amended Stamp Duty (Act 2025) W.e.f 10.04.2025
|
Remarks |
| 5(gc) | project under Built, Operate (BOT) and Transfer system, or concession agreement or any project built under other mode of public private partnership which are not covered under any other existing article, whether with or without toll or free collection rights | — | Subject to a maximum of Rs. 25 lakhs and a minimum of Rs. 5,000, 0.10% of the amount agreed in the contract | New clause (gc) inserted under Article 5 to cover BOT and similar projects |
| 6(1)(a) | Agreement or memorandum relating to deposit of title deeds (repayable on demand or more than 3 months) | (i) 0.25% up to Rs. 10 crore
(ii) 0.50% above Rs. 10 crore (max Rs. 8 lakhs) |
(i) Up to Rs. 1 crore: Max Rs. 5,000, Rs. 0.25 per Rs. 100
(ii) Rs. 1 crore to Rs. 10 crore: Rs. 0.25 per Rs. 100 (iii) Above Rs. 10 crore: Max Rs. 15 lakhs (Rs. 75 lakhs for consortium banks), Rs. 0.50 per Rs. 100 |
Revised slabs and increased maximum limits; consortium bank cap raised |
| 6(2) | Pawn, pledge, or hypothecation of movable property | (i) 0.25% up to Rs. 10 crore
(ii) 0.50% above Rs. 10 crore (max Rs. 8 lakhs) |
(i) Up to Rs. 1 crore: Max Rs. 5,000, Rs. 0.25 per Rs. 100
(ii) Rs. 1 crore to Rs. 10 crore: Rs. 0.25 per Rs. 100 (iii) Above Rs. 10 crore: Max Rs. 15 lakhs (Rs. 75 lakhs for consortium banks), Rs. 0.50 per Rs. 100 |
Similar revision as 6(1)(a) with new slabs and higher caps |
| 12 | Articles of Association of a Company | 0.50% of total amount (max Rs. 5 lakhs) | Subject to a maximum of Rs. 15 lakhs. | Maximum limit increased from Rs. 5 lakhs to Rs. 15 lakhs |
| 14 | Bond | (i) 0.25% up to Rs. 10 crore
(ii) 0.50% above Rs. 10 crore (max Rs. 8 lakhs) |
(i) Up to Rs. 1 crore: Max Rs. 5,000, Rs. 0.25 per Rs. 100
(ii) Rs. 1 crore to Rs. 10 crore: Rs. 0.25 per Rs. 100 (iii) Above Rs. 10 crore: Max Rs. 15 lakhs (Rs. 75 lakhs for consortium banks), Rs. 0.50 per Rs. 100 |
New slabs introduced; maximum limit raised significantly
|
| 20(d) | Conveyance (amalgamation, merger, demerger, etc.) | (I) 1% of (market values of share + Consideration Amount) or 1% (of Face values of share + Consideration Amount) (whichever higher) or
(II) 1% Market Value of immovable Property [(i) or (ii) whichever is higher)] (max 25 crore) |
Subject to a maximum of Rs. 50 crore and a minimum of Rs. 10,000 for each transferor or transferee; same 1% calculation applies | Maximum limit doubled to Rs. 50 crore; minimum duty introduced |
| 27(b) | Further Charge (without possession) | (i) 0.35% up to Rs. 10 crore
(ii) 0.70% above Rs. 10 crore (max Rs. 11.2 lakhs) |
a) Up to Rs. 1 crore: Max Rs. 5,000, Rs. 0.25 per Rs. 100
(b) Rs. 1 crore to Rs. 10 crore: Rs. 0.25 per Rs. 100 (c) Above Rs. 10 crore: Max Rs. 15 lakhs (Rs. 75 lakhs for consortium banks), Rs. 0.50 per Rs. 100/- |
Revised slabs; maximum limit increased significantly |
| 30(a) | Lease (immovable property, rent-based) | (i) Up to 1 year: 1.4% of rent amount
(ii) 1-3 years: 2.8% of average yearly rent (iii) 3-10 years: 4.9% of average yearly rent (iv) 10-30 years: 4.9% of twice average yearly rent (v) 30-98 years: 4.9% of thrice average yearly rent (vi) 98 years: 4.9% of five times average yearly rent (vii) Infinity: 4.9% of 1/5 of 50 years rent (viii) No time limit: 4.9% of 10 years rent |
(i) <1 year: Residential Rs. 500, Commercial Rs. 1,000
(ii) 1-5 years: Min Rs. 1,000 (residential) or Rs. 5,000 (commercial), Rs. 1 per Rs. 100 of average annual rent (iii) 5-15 years: Min Rs. 10,000, Rs. 2 per Rs. 100 (iv) 15-30 years: Min Rs. 20,000, Rs. 3 per Rs. 100 (v) 30-99 years: 2.5% of consideration or market value (whichever is higher) (vi) >99 years: Same as conveyance under Article 20 |
Completely restructured with fixed minimums and new percentage rates; terms redefined |
| 30A | Leave and License Agreement (other than residential property) | 0.50% of total amount | Deleted | Article 30A removed entirely |
| 36(c) | Mortgage Deed (collateral, auxiliary, additional, or substituted security) | Rs. 5 for Rs. 1000 i.e. 0.5% of the secured amount. | Rs. 5,000 (flat rate) | Changed from percentage to a fixed amount. |
Conclusion
The Amendment Act of 2025 aims to modernize stamp duty rates in Gujarat by incorporating new measures such as the Built, Operate, and Transfer (BOT) clause and increasing the maximum limit for corporate conveyances to Rs. 50 crores. These amendments are designed to strike a balance between fiscal efficiency and practical applicability, ensuring that the state’s stamp duty rates remain relevant in today’s economic panorama. Some rates, such as those for collateral mortgage deeds, become fixed while others are structured in different tiers to accommodate various transactions. It is important for various stakeholders, such as property developers and financial institutions, to adjust to these new regulations in order to comply with them and take advantage of the improved clarity they provide for future transactions.
Author Bio
Regarding the section 12 amendment in the schedule 1 of the act, i feel there is a mistake with the new rate for 100 rupees. Please look into the bear act, the 50 paisa for 100 has not been changed to 15 per 100 rupees. (in article 12, in column 2, for the words “subject to a maximum of five lakhs rupees,’’ the words “subject to a maximum of fifteen lakhs rupees,’’ shall be
substituted. )