Punjab Stamp Duty Waiver (Large Units)

Under Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab, large units receive a full waiver of stamp duty payable on land and building purchased or leased for the project. The waiver is extended either as an upfront exemption at the time of registration, or as a reimbursement in cases where the duty has already been discharged.

Stamp duty on an industrial land transaction accounts for a sizeable portion of the land cost. It becomes payable at the stage when a project's cash position is at its tightest — before production has begun.

By doing away with this duty, the effective entry cost of establishing operations in Punjab comes down.

1. Register and secure approval for the project as an eligible large unit under the Industrial and Business Development Policy 2022. 2. Where feasible, submit the stamp duty exemption application prior to executing the sale or lease deed. 3. Lodge the application on the Invest Punjab Business First portal, attaching the draft deed, project approval and land particulars. 4. In cases where duty has already been discharged at registration, submit a reimbursement claim accompanied by the stamped instrument and treasury challan. 5. Following verification, the department either issues the exemption certificate or disburses the refund.

The department carries out a verification exercise before granting relief. It confirms two things: that the applicant qualifies as a large unit, and that the instrument in question pertains to project land or building. Once both conditions are satisfied, the department either issues the exemption or sanctions the refund.

No competing applications are involved in this route.