Telangana revenue collection from SD&RCS up 48 pc to INR 72.13 bn in H1FY23

Hyderabad: Telangana has recorded a 48 percent jump in Revenue collection from Stamp Duty and Registration Charges (SD &RCs) in H1FY23 at INR 72.13 bn from INR 49 bn in H1FY22, according to a study by Motilal Oswal Financial Services Limited.

Telangana state contributed 8 per cent to the overall revenue collections in the country, the study said.
However, this surge in Telangana’s collections came on a much smaller base putting the state at fifth spot among 27 states and the Union Territory of Jammu and Kashmir in terms of the quantum of revenues mopped up on this front.

Telangana state’s average monthly revenue collection in H1FY23 was INR 12.02 bn as compared to INR 8.17 bn in H1FY22.

The cumulative revenue collection from SD&RCs from 27 states and one UT (J&K) in India was recorded at INR 948.47 bn for H1FY23. This has recorded a surge of 35 per cent from INR 701.20 bn in H1FY22.
The average monthly revenue collection in H1FY23 was INR 158.07 bn as compared to INR 116.87 bn in H1FY22.

Maharashtra leads the pack with the highest SD &DC revenue collection of INR 186 bn for H1FY23 as against INR 113 bn in H1FY22. The state contributed 20 percent of the overall SD&RCs revenue of the country in H1FY23, the study revealed.

Uttar Pradesh is placed second with INR 123.94 bn revenue from SD&RCs with a contribution of 13 per cent to the overall collection. UP witnessed an increment of 33 per cent in revenue from INR 93 bn in H1FY22.

Tamil Nadu is placed third with INR 86.62 bn with 9 per cent contribution to the overall revenue accrued by the country. The state witnessed 39 per cent increase in revenue in H1FY23 from INR 62 bn in H1FY22.
Karnataka and Telangana are placed 4th and 5th in revenue collection from SD&RCs INR 82.29 bn and INR 72.13 bn, respectively.

From the aspect of percentage growth in terms year-on-year, Mizoram witnessed growth of 104 per cent, followed by Meghalaya with 82 per cent, Sikkim with 70 per cent, Maharashtra with 65 per cent, Odisha with 50 percent and Telangana and Kerala with 48 per cent, the study stated.

Eleven states — Mizoram, Meghalaya, Sikkim, Maharashtra, Odisha, Telangana, Kerala, Chhattisgarh, Uttarakhand, Himachal Pradesh and Rajasthan have recorded more than 40 per cent increment in their revenue collection from SD&RCs.

According to Nikhil Gupta, Chief Economist, Motilal Oswal Financial Services Limited, “The residential real estate sector has performed superbly over the past 18-24 months and continues to do well right up to 2QFY23.

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. Adding to that, the real possibility of a global recession in CY23 and the real estate sector may be in for some slowdown.”