At a glance
| Measure | Instrument | Ends |
|---|---|---|
| Stamp-duty exemption for IFSC units | State notification, described in GIFT City's guides; reference not confirmed (see below) | Ten years commencing 4 August 2020, on the guides' description |
| Gujarat IT/ITeS Policy (2022-27) | Department of Science and Technology G.R. No. ITP/10/2021/583612/IT dated 7 February 2022 | 31 March 2027, or earlier if a new or revised policy is declared |
| Implementation Guidelines for the Policy | G.R. No. ITP/10/2021/583612/IT dated 6 July 2022, amended by G.R. No. DST/ITP/e-file/24/2024/0626/IT dated 13 August 2024 | With the Policy |
| Stamp duty on IFSC exchange transactions | See STT, CTT and stamp duty | Not stated |
The stamp-duty exemption for IFSC units
GIFT City's guides, 'Doing Business in GIFT City' (2024) and 'Doing Business at GIFT IFSC', describe the State exemption as covering:
- all activities related to setting up units in GIFT IFSC; and
- acquisition of any movable property (including aircraft) or immovable property,
for a period of ten years commencing on 4 August 2020. The guides note that it may not be available on the sale of an aircraft. On that description the period ends on 3 August 2030.
The exemption is granted by State notification. We have not been able to read the notification on an official Government of Gujarat site, so we do not give its number here. Its scope should be confirmed against the notification for the particular instrument before execution, in particular:
- whether the instrument is one 'related to setting up' the unit, or an acquisition of property within the exemption;
- whether the exemption extends to registration fees as well as stamp duty; and
- that the instrument is executed within the ten-year period.
Transactions with long lead times, such as property purchases or fleet transfers, should be planned with the end date in mind.
The IT/ITeS Policy (2022-27)
The Policy supports eligible IT and ITeS units in Gujarat. Its definition of IT enabled services includes, among other things, back-office operations, revenue accounting, financial and accounting processing, HR and payroll processing, IT-enabled banking, depository and dematerialisation services, and non-banking services including insurance, pension, asset management and market-related services. GIFT City's guides state that IFSC units can receive State subsidies for prescribed eligible activities under the Policy. Whether a particular unit qualifies is decided under the Policy.
For IT/ITeS units the main fiscal support is:
| Category | CAPEX support (one-time) | OPEX support |
|---|---|---|
| Category I: gross fixed capital investment below INR 250 crore | Up to 25% of eligible CAPEX, capped at INR 50 crore | Up to 15% of annual eligible OPEX, capped at INR 20 crore a year, for five years |
| Category II (mega projects): investment of INR 250 crore or more, or 2,000 or more direct IT employees | Up to 25% of eligible CAPEX, capped at INR 200 crore | Up to 15% of annual eligible OPEX, capped at INR 40 crore a year, for five years |
Eligible CAPEX includes stamp duty and registration fees paid to the Government for lease, sale or transfer of land and office space. Eligible OPEX includes lease rental for office space, up to INR 50 per sq ft of built-up area a month; the Implementation Guidelines compute it on at most 60 sq ft per employee on the payroll. The Guidelines also provide for an employment generation incentive (for employees with a Gujarat domicile certificate), Atmanirbhar Gujarat Rojgar Sahay, an electricity duty incentive and interest assistance.
Conditions and procedure
- Operative period. The Policy is in force until 31 March 2027 or the declaration of a new or revised policy, whichever is earlier. Only entities that apply by 31 March 2027 and commence operation by 31 March 2028 are eligible.
- Minimum size. A new unit needs at least 10 employees on its payroll; support stops if the count falls below 10 for three consecutive months.
- Portal. Applications and claims go through the Incentive Management Portal at dstpolicy.gujarat.gov.in: application, in-principle approval, claim, final approval and disbursement.
- Timing. A new unit applies within one year of starting commercial operations. Under the 13 August 2024 amendment, a late application shortens the eligible period by the delay, and every application must be made by 31 March 2027.
- No double claims. An applicant claiming incentives under other Government of Gujarat policies may not claim under this Policy. Central Government incentives are not affected.
Before you rely on it
- Read the current notification or G.R. for the measure, not a summary, and keep a copy on file.
- Check the end date against your timetable. The Policy closes to applications on 31 March 2027. We have not seen a successor IT/ITeS policy.
- Confirm that the activity falls within the Policy's definitions and that the unit meets the employee and investment conditions.
- Model the business case with and without the incentive. See the cost model.
For other State policies, including the Global Capability Center Policy (2025-30), see Gujarat sector policies.