Lok Sabha Question No. 1893 (UNSTARRED), answered on 2023-08-01
Subject: Impact of One Nation One Registration Scheme
Ministry: RURAL DEVELOPMENT
Asked by: V. Kalanidhi

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF LAND RESOURCES

## LOK SABHA UNSTARRED QUESTION NO.1893 TO BE ANSWERED ON 01.08.2023

## Impact of One Nation One Registration Scheme

## 1893. DR. KALANIDHI VEERASWAMY:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) the features of the One Nation One Registration Scheme;
- (b) whether the Government is aware that one nation-one registration will curtail the powers of States and if so, the details thereof;
- (c) whether  the  Government  is  also  aware  that  the  earnings  through  stamps  and  registrations remained as the major revenue source for State Governments;
- (d) if  so,  whether there will be a loss of revenue if the Centre takes over powers of States on registration charges and stamp duties and if so, the details thereof;
- (e) whether the Government is also aware that after the implementation of GST from July 2017, States already lost their power to impose sales tax/ VAT on several products;
- (f) whether  various  States  are  waiting  for  the  Centre  to  reimburse  their  tax  share  after  GST collections;
- (g) if so, whether many States complain of losing their revenue collections after GST came into force and if so, the details thereof; and
- (h) whether some of the States have objection over this move and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI FAGGAN SINGH KULASTE)

(a) In  order  to  have  a  uniform  process  for  registration  of  deeds  and  documents,  the  Central Government, under  the  broad  aegis  of  Digital  India  Land  Records  Modernisation  Programme (DILRMP)  developed  the  National  Generic  Document  Registration  System  (NGDRS)  a  One Nation One Registration system for registration of deeds and documents under the Registration Act, 1908. NGDRS has been adopted by 17 States and UTs and 13 States and UTs are sharing their  registration  related  information  with  central  portal  of  NGDRS  (www.ngdrs.gov.in).   The salient  features  of  NGDRS inter alia include:  developed using open source platform, reducing cost of proprietary software; 11 basic modules to facilitate the services to citizen;  citizen centricempowers citizens to calculate stamp duty, registration fees and other fees applicable from the property valuation module as well as take online prior appointments for document registration; reduction in visits to SRO and other offices; reduces time, cost, processes;  minimum interface with  officials;  prevent  the  fraudulent  transactions  &  disputes;  greater  transparency;  realtime information at national portal www.ngdrs.gov.in

(b) to (d) and (h) Registration of documents and deed is a concurrent subject as per entry no. 6 of List III  (Concurrent List) of Schedule VII to the Constitution and provisions of the Act are implemented by the  States  and  UTs.  The  Central  Government  through  DILRMP  is  providing financial  and  technical support  to the States for computerization  of  registration  offices. Registration of documents and deeds using NGDRS continues to rest with States/UTs. Thus, one nation-one registration system - NGDRS will not curtail the powers of States on any count.

(e) to (g) GST has been a milestone in the economic landscape of India.  Before the GST regime, the number of registered taxpayers was around 54 lakhs which has now increased to around 1.46 Crores  after  the  GST  regime.   With  continued  efforts  for  simplification,  GST  has  leveraged assessee  facilitation  and  sustained  progress  towards  rationalizing  and  making  indirect  tax administration more taxpayer friendly.

As per Article 246A of the Constitution of India, Legislature of every State has been empowered to  make  laws  with  respect  to  goods  and  services  tax  imposed  by  the  Union  or  by  such State.   Parliament  has  exclusive  power  to  make  laws  with  respect  to  goods  and  services  tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.

As  per  Section  18  of  the  Constitution  (One  Hundred  and  First  Amendment)  Act,  2016, compensation to the States for loss of revenue arising on account of implementation of the goods and  services  tax  is  payable  for  a  period  of  five  years.   During  transition  period,  the  States' revenue  is  protected  at  14%  per  annum  over  the  base  year  revenue  of  2015-16.  Central Government is committed for payment of GST compensation to States/UTs for five years as per law enacted by the Parliament according to the Constitutional provision.

As per the provisions of Section 7(2) of Goods and Services Tax (Compensation to States) Act, 2017,  enacted  by  Parliament,  the  compensation  payable  to  a  State  shall  be  provisionally calculated and released at the end of every two months period, and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Comptroller and Auditor  General  of  India.  Government  of  India  has  already  released  the  entire  amount  of provisionally  admissible  GST  compensation  to  the  States/UTs  for  loss  of  revenue  arising  on account of implementation of Goods and Services Tax for five years i.e., from 1st July, 2017 to 30th June, 2022.  Final  Compensation arising out of reconciliation of provisional figures with audited figures is released immediately as and when the AG's certificate is received.

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