Scenario: Shop in Connaught Place, Rs.1,50,000/month, 10-year lease, 8% annual escalation.
| Duration | 10 years (120 months) |
| Average Annual Rent (approx.) | Rs. 26,07,000 |
| Stamp Duty Slab | 3% (5-10 years) |
| Stamp Duty | Rs. 78,210 |
| Registration Fee | Rs. 1,100 |
| GST on Rent (18%, payable by tenant) | Rs. 4,69,260/yr |
| Total Govt. Charges | Rs. 79,310 |
Avg annual rent exceeds Rs.20 lakh, so 18% GST applies on the rent (separate from stamp duty). Commercial leases almost always trigger this.