GST paid on lease deeds will not be taken into consideration for calculating the stamp duty and registration fee. A recent circular by the office of inspector general of registration said that a question has been raised on whether GST payable by the lessee should be chargeable for stamp duty after the implementation of Goods and Services Tax (GST) by the Centre from July 01, 2017. As per the Indian Stamp Act 1899, when a lessee undertakes to pay any recurring charge such as government revenue, municipal taxes, the amount agreed to be paid by the lessee shall be deemed to be part of the rent.
Service tax agreed to be paid by the lessee would also be deemed to be part of the for the purpose of levying stamp duty. Meanwhile, the Advocate General of Tamil Nadu has opined that GST cannot be included as part of the rent for the purpose of charging stamp duty. Thereafter, GST payable by the lessee cannot be treated as part of the rent for the purpose of charging stamp duty under the Indian Stamp Act, 1899, the circular added.