Gujarat Government Increases Jantri Rates to Boost Stamp Duty Collection

 The Gujarat government recently approved an increase in jantri rates, which are the minimum property valuation rates used for stamp duty calculation. This move is expected to boost stamp duty collections by around Rs 1,000 crore. The state revenue department has increased jantri rates by an average of 10-20% across various locations in Gujarat. The new jantri rates will be applicable from April 1, 2023.

This revision of jantri rates comes after a gap of two years. Property valuations have increased significantly during this time. However, stamp duty calculation is still based on outdated lower jantri rates. The Gujarat government hopes to capture increased revenue by aligning jantri rates closer to current market property valuations.

Industry experts say that the government could have considered higher increases in jantri rates of up to 40% to match current market prices. Nonetheless, this move will lead to higher stamp duty collection which is expected to cross Rs 5,000 crore next fiscal year. It remains to be seen if the increased rates will impact property registrations.

The state government is optimistic that the rise in jantri rates will provide an additional revenue source without affecting the real estate sector too adversely. This form of rationalization in minimum valuation rates for stamp duty calculation can lead to increased tax collection. However, a balance needs to maintained to not overburden property buyers.

Overall, the Gujarat government aims to increase tax revenue by revising jantri rates after two years. This move will likely boost stamp duty inflows, however the impact on the property market remains to be seen.