The ubiquitous stamp paper may be on its way out

The state government is considering phasing out stamp papers, which are vulnerable to physical alterations and forgery, and replacing them with more secure ways of paying stamp duty like e-challans and e-Secured Bank cum Treasury Receipts (eSBTR).

On Tuesday, the state cabinet had lowered the minimum limit on payment of stamp duty by eSBTR—which have the look and feel of a stamp paper but are issued by banks—to just Rs 100 from the previous Rs 5,000.

State government officials said this had been prompted by the shortage of physical stamp papers of Rs 500 and Rs 100 denominations and non-available of franking facilities.

Anil Kawade, Inspector General of Registration and Controller of Stamps confirmed they were considering phasing out physical stamp papers.

“We want to ensure that most payments are done online or through means like eSBTR which will not require the purchase of stamp papers,” said Kawade. He added that the printing of stamp papers was demand-based and hence, a fall in demand would lead to lower inventories being generated.

The state has not issued new stamp paper vending licenses since 2010.

The eSBTR has the look and feel of a stamp paper with more security features and is issued by designated banks for a commission.

...& ANALYSIS

• The decision to replace physical stamp papers with more secure and transparent electronic modes of payment will ensure transparency and plug leakages in government revenues