E-Stamp vs Non-Judicial Stamp Paper vs Franking: Which Should Your Business Use?
You can pay stamp duty in India in three main ways: e-stamp certificates, traditional non-judicial stamp paper and franking. All three can be legally valid, but they differ a lot in cost, convenience and fraud risk. This guide compares e-stamp vs non-judicial stamp paper (and franking) so you know which to use for each business document.
Quick Comparison
| Basis | E-stamp | Non-judicial stamp paper | Franking |
| What it is | Digital certificate of duty paid | Pre-printed government stamp paper | Stamp impression printed on your document |
| Where to get it | SHCIL online/centres, state portals | Licensed stamp vendors, treasuries | Authorised banks and franking agents |
| Exact amount | Yes | No, fixed denominations | Yes |
| Verification | Instant online via UIN/QR | Difficult | Through issuing bank |
| Fraud risk | Very low | Higher | Low |
| Availability | High | Depends on vendor stock | Limited to branches |
| Best for | Most business documents | Small fixed-duty documents where e-stamp isn't available | Maharashtra and franking-heavy states |
What is Non-Judicial Stamp Paper?
Non-judicial stamp paper is physical paper printed by the government in fixed denominations (₹10, ₹50, ₹100, ₹500 and up) and sold through licensed vendors. It is used for agreements, affidavits and deeds. "Judicial" stamp paper, by contrast, is used for court fees.
Physical stamp paper has been phased out or restricted in many states for higher values because of large-scale forgery, notably the Telgi scam, and is being replaced by e-stamping.
What is E-Stamp?
An e-stamp is a computer-generated certificate issued through SHCIL or a state system. It shows the exact duty paid, the parties, the document type and a unique identification number. It can be verified online in seconds. Read our complete e-stamp guide.
What is Franking?
Franking is when an authorised bank or agent prints a stamp duty impression directly on your document using a franking machine. It's common in Maharashtra alongside GRAS and e-SBTR, and is still used in some other states.
Key Differences Explained
Legal Validity
All three are valid proof of stamp duty where the state permits them. What matters is paying the correct amount in the correct state, not which method you choose to pay stamp duty.
Cost Accuracy
E-stamp and franking let you pay the exact duty, for example ₹8,800. With non-judicial stamp paper, you combine denominations and may overpay or end up short of the required amount.
Fraud Protection
E-stamps carry a UIN and QR code that anyone can verify online. Physical stamp paper is much harder to verify, which is why courts and banks increasingly prefer e-stamped documents.
Convenience
E-stamps can be bought online from your office. Non-judicial stamp paper needs a vendor visit and depends on stock, while franking requires going to an authorised bank branch.
Record Keeping
E-stamp records are stored centrally, so a lost copy can still be traced. A lost physical stamp paper is practically impossible to prove, which weakens your position in a dispute.
Which One Should You Use?
| Document | Recommended method |
| Commercial rent agreement | E-stamp (or GRAS/franking in Maharashtra) |
| Partnership deed / LLP agreement | E-stamp |
| Affidavit for GST, bank or tender | E-stamp, or physical paper where allowed for small values |
| NDA / service agreement | E-stamp, ideally with e-sign for remote parties |
| Property documents | State-prescribed method only (e-stamp, GRAS or KAVERI-2) |
Is Physical Stamp Paper Still Valid?
Yes, where the state still issues it and the paper is genuine and of the correct value. But:
- Many states have stopped selling higher-value physical stamp paper.
- Some institutions now ask for e-stamped documents by default.
- Old stamp paper bought long ago may be questioned. Most states expect use within six months of purchase.
Common Mistakes
- Combining many low-value papers to reach a high duty: it's legal in principle, but it looks suspicious and is impractical.
- Buying stamp paper in someone else's name: Whatever the method, the stamp should be bought for the parties to the document.
- Assuming franking can be verified like e-stamp: Keep the franking receipt.
- Using a different state's stamp: All three methods are state-specific.
Frequently Asked Questions (FAQs)
What is the difference between e-stamp and stamp paper?
E-stamp is a digital certificate for the exact duty paid, verifiable online. Non-judicial stamp paper is pre-printed physical paper in fixed denominations and is harder to verify.
Is e-stamp better than non-judicial stamp paper?
For most business documents, yes. It allows exact payment, instant verification and much lower fraud risk.
Is non-judicial stamp paper still valid in 2026?
Yes, where the state still issues it and the value is correct, but many states have restricted it in favour of e-stamping.
What is franking of documents?
Franking is printing a stamp duty impression directly on a document through an authorised bank or agent's franking machine.
Can I use e-stamp for an affidavit?
Yes. E-stamp certificates are widely used for affidavits, including those required for GST, banking and government applications.
Conclusion
The method matters less than the amount and the state, but e-stamping gives you exact payment, instant verification and a permanent record. Use e-stamp by default, use your state's system where SHCIL isn't available, and reserve physical stamp paper for small documents where e-stamp isn't practical.
Read our e-stamp verification guide, or contact the StartupFlora team for help with business documentation.