State revenue increased by 35% from stamp duty registration
State governments revenue collection from stamp duty and registration fees across 27 states and one union territory ( Jammu & Kashmir ) in India was recorded Rs . 94,847 crore in the first half of the FY 2022-2023 (H1FY23) , showing a rise of 35% against the same time period of the previous financial year.
In first half of the FY 2022-2023 , the average monthly revenue collection was Rs . 15,807 crore compared to Rs. 11,687 crore in the same period of 2021-22, according to a study by Motilal Oswal Financial Services.
More than 40% of the total income generated was collected by Maharashtra, Uttar Pradesh, and Tamil Nadu, who also leading the revenue collection. Residential real estate has been reviving since covid , which is substantially responsible for the increase in revenue. Housing finance businesses said that demand for house loans in tier – 2 and – 3 cities and towns increased during the past two quarters of current fiscal, according to property consultants who reported a sharp increase in housing unit sales throughout metro areas.
According to the report , Maharashtra leads the table with the highest collection of revenue from this head at Rs 18,600 crore, which grew by 65% from the previous year. It added that this 20% of the total stamp duty and registration fees for the country in first half . Maharashtra is the largest state in terms of the size of its economy and the sky-high prices of real estate in Mumbai, so it is not surprising.
In the second place is Uttar Pradesh with Rs. 12,300.94 crore in revenue from this head or 13 % of the overall collections . Revenue increased by 33% for the state from Rs . 9300 crore in first half of the FY 2022-2023 (H1FY22) . Tamil Nadu is at the third place Rs. 8,600.62 crore , or 9% of the total national contribution. The state collected 39% more in these levies from Rs. 6,200 crore during the study period .
According to the state, Karnataka and Telangana are placed fourth and fifth, respectively, with 8,200,29 crore and 7,200,13 crore.
When looked at in terms of percentage increase, the small Northeastern states dominate the graph, with Mizoram coming in last with a year-over-year growth rate of 104%, followed by Meghalaya (82%) and Sikkim (70%) The next three states are Maharashtra (65%), Odisha (50%) and Telangana (48%) and Kerala (48%) respectively.
According to the report , eleven states — Mizoram, Meghalaya, Sikkim, Maharashtra, Odisha, Telangana, Kerala, Chhattisgarh, Uttarakhand, Himachal, and Rajasthan have seen an increase in their levied revenue collections of more than 40%.
Only Bihar received negative growth of -73% to Rs . 620 crore in the first half of 2022-2023 compared to the same time period in the previous fiscal.
According to Nikhil Gupta , Chief economist at Motilal Oswal Financial Services stated that , Over the past 18 to 24 months, the residential real estate sector has performed remarkably. Over the past six months, the most of incentives, including reduced stamp duty, lower interest rates, and lower prices, have disappeared. Thus , it is very likely that the sector may see some headwinds in upcoming quarters.
According to S Sridharan , chairman of ( urban development and hosuing ) credai national , said that demand for hosing plots has increased in comparison to earlier covid times.
