The Gujarat government has announced a waiver of 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, offering significant financial relief to current plot holders burdened by legacy registration liabilities. The decision was announced on Tuesday, 1 September from Gandhinagar.

The scheme addresses a long-standing problem: GIDC industrial plots and sheds were historically transferred through allotment letters or supplementary agreements rather than registered lease deeds, leaving stamp duty unpaid. That liability now falls on current owners when they seek loans or need to meet other legal requirements.

Who Is Eligible and What They Must Pay

Eligible MSME units must hold a valid Udyam Registration Certificate. Under the amnesty, they will be required to pay only 20 per cent of the applicable stamp duty along with the applicable penalty. A key safeguard ensures the amount recovered will not fall below the original stamp duty payable at the time of the transaction.

The scheme covers eligible transactions — including allotment letters, share transfers, lease or sub-lease transactions, and other qualifying property transfers — carried out up to 30 June 2025.

How Relief Is Calculated

For transfers made before 1 January 2018, the 80 per cent relief is 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 1 January 2018 where stamp duty remains recoverable, the same 80 per cent relief applies, with 20 per cent of the applicable duty and the penalty payable by the current allottee.

The Penalty Backdrop: Gujarat Stamp Act Amendments

The urgency behind the amnesty is underscored by amendments to the Gujarat Stamp Act, 1958, effective from 10 April 2025. Under the revised provisions, voluntarily presented instruments attract simple interest of 2 per cent of the deficient stamp duty per month from the date of execution, plus a penalty of up to four times the deficient duty. Where an instrument is impounded following government inspection, the interest rate rises to 3 per cent per month and the penalty can reach up to six times the deficient duty — making the amnesty window a materially cheaper route for affected MSMEs.

Pending Appeals and Court Cases

The scheme also provides a resolution pathway for cases already in the legal system. 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. Applicants who have filed petitions before a court may avail themselves of the relief after withdrawing the petition.

What Happens Next

Current allottees seeking the concession must pay the applicable duty and penalty and complete mandatory legal registration of the property, bringing previously unregistered transactions into the formal system. The state government said the scheme is part of broader efforts to simplify industrial property procedures and resolve long-pending stamp duty cases across GIDC industrial estates and MSME parks in Gujarat. The regularisation of property records is expected to unlock easier access to institutional credit for eligible units.