Assembly passes Cess Amendment Bill 2026; move to reduce costs, simplify registration and boost real estate activity
TFP Bureau, Raipur, March 21,2026:
In a major relief for property buyers, the Chhattisgarh Legislative Assembly on Thursday passed the Chhattisgarh Cess (Amendment) Bill, 2026 by voice vote, abolishing the 0.60 per cent cess levied on the registration of immovable property.
Welcoming the decision, Chief Minister Vishnu Deo Sai said the move reflects the government’s commitment to reducing the financial burden on common citizens, farmers and middle-class families, while making governance more transparent and citizen-friendly.
Direct Relief for Property Buyers
With the abolition of the cess, property registration costs are set to decline significantly. Officials said that for a property valued at ₹1 crore, buyers will now save approximately ₹60,000, making land and house registration more affordable and accessible.
Commercial Taxes Minister O. P. Choudhary said the decision would benefit lakhs of citizens involved in property transactions and simplify the overall registration process.
“This is not merely a legal amendment but a reflection of the government’s commitment to public welfare and equitable taxation,” he said, adding that governance should focus on easing the lives of citizens rather than increasing revenue burdens.
Series of Reforms in Registration System
Highlighting broader reforms, the minister said the state has undertaken multiple steps to modernise and simplify the property registration system. These include the introduction of automatic mutation, which ensures that land records are updated immediately after registration, eliminating delays that earlier stretched for months. Since May 2025, around 1.5 lakh documents have been processed under this system.
To enhance transparency, the government has also launched the ‘Sugam’ mobile application for accurate geo-verification of properties, and implemented Aadhaar-based identity verification across registration offices to prevent fraud.
Registration offices are being upgraded into ‘Smart Registration Offices’ with modern सुविधाएँ such as air-conditioned waiting areas, drinking water, Wi-Fi and queue-based systems, with 10 such centres currently being developed under the PPP model.
Rationalisation of Fees and Valuation
The government has also revised the method of calculating registration fees. Instead of charging based on the higher of market value or guideline value, fees will now be calculated only on the guideline value, providing significant financial relief to buyers.
Additionally, fees on family-related property transactions such as gift deeds, partition and relinquishment have been drastically reduced to a nominal ₹500, regardless of property value—down from 0.8 per cent earlier. This change is expected to particularly benefit middle-class families and farmers.
In rural areas, the valuation system has been simplified by shifting from square metre-based calculations to per-hectare rates, eliminating inflated valuations for small landholdings. Provisions such as the 2.5-times multiplier on agricultural land and additional valuation charges have also been removed.
For urban properties, valuation of flats will now be based only on built-up area instead of super built-up area, further reducing costs for buyers.
Background of the Cess
The cess, introduced under the Chhattisgarh Cess Act, 1982 and later imposed in 2023 at an effective rate of around 0.60 per cent of market value, was intended to fund schemes such as employment initiatives and the Rajiv Gandhi Mitan Club Scheme.
Choudhary said that with such schemes either discontinued or funded through the general budget, the purpose of the cess had become redundant. The state had collected around ₹148 crore from the cess in 2024–25 and approximately ₹150 crore in the current financial year so far.
Economic Impact Expected
Despite the revenue loss, the government believes the decision will stimulate economic activity by encouraging more property registrations and boosting the real estate sector. Increased transparency and lower costs are also expected to benefit farmers and families investing their life savings in land and housing.
Chief Minister Sai said the move is part of a broader vision to create a fair, simple and people-centric tax system. “This is not just tax relief, but a step towards respecting the aspirations of citizens and making property ownership more accessible,” he said.
The abolition of the cess, along with ongoing reforms in the registration department, is expected to deliver substantial annual financial benefits to citizens and strengthen the state’s push towards inclusive growth and ease of living.
