State tops in stamp duty and registration revenue

MUMBAI: Maharashtra has recorded the highest revenue collection of ₹186.02 billion from stamp duty and registration among all the 27 states in the country in the first six months of the financial year 2022-23.

The state saw a 65% rise with over ₹113 billion it mopped in housing sales in the first six months of FY 2021-22, revealed a study by Motilal Oswal Financial Services Ltd on Monday.

The state’s average monthly revenue collection for stamp duty and registration charges in H1FY23 was ₹31 billion as compared to ₹18.83 billion in H1 FY22.

Uttar Pradesh was placed second with ₹123.94 billion during the first six months of the financial year with a 33% rise of over ₹93 billion during the corresponding period last year. Tamil Nadu, Karnataka, and Telangana followed with revenues of ₹86.62 bn, ₹82.29 bn, and ₹72.123 bn.

The cumulative revenue collection from stamp duty and registration charges from 27 states and one union territory (J&K) in India was recorded at ₹948.47 bn for H1FY23, a 35% increase over ₹701.20 bn in H1FY22.

Nikhil Gupta, chief economist, of Motilal Oswal Financial Services Ltd. said, “The residential real estate sector has performed superbly over the past 18-24 months and continues to do well right up to Q2 FY23. Most of the incentives such as stamp duty reduction, lower interest rates or lower prices have disappeared over the past six months. It is, thus, very likely that the sector may see some headwinds in the coming quarters. Add to that the real possibility of a global recession in CY23 and the real estate sector may be in for some slowdown.”