The Retailers Association of India (RAI) has welcomed the Government of Uttar Pradesh’s decision to cap stamp duty and registration fees on lease and rental agreements, a move expected to ease compliance costs for retailers and other commercial establishments.

The decision, notified on 19 November 2025, introduces fixed upper limits on stamp duty and registration fees for lease deeds based on the tenancy period and average annual rent. The caps apply for leases of up to one year, one to five years, and five to ten years, replacing the earlier system where charges could escalate significantly with higher rents and longer lease terms. The remission is applicable for an initial period of six months and excludes toll and mining lease agreements.

Industry bodies, including RAI, have long flagged high and unpredictable stamp duty and registration costs as a deterrent to formal lease registration, particularly for retailers operating multiple outlets. By introducing clear ceilings linked to rent slabs, the new framework is expected to reduce transaction costs, encourage formalisation of tenancy agreements, and provide greater certainty for businesses planning expansion in the state.

RAI noted that the notification reflects sustained industry engagement on the issue and could serve as a reference point for similar reforms in other states seeking to improve the ease of doing business for the retail and commercial sectors.