E-Stamping in Karnataka and Maharashtra: KAVERI-2, GRAS and e-SBTR Explained

Bengaluru, Mumbai and Pune are home to a huge share of India's startups. Yet both Karnataka and Maharashtra handle stamp duty differently from the SHCIL model used in Delhi or UP. A founder who has bought e-stamp paper in Delhi will find the process unfamiliar here.

This guide explains e-stamping in Karnataka and Maharashtra: the systems each state uses, how to pay stamp duty for business documents, what leases cost and how to verify payment.

Karnataka vs Maharashtra: Quick Comparison

Figures are commonly cited rates. Confirm with the state's stamp department before paying.

E-Stamping in Karnataka

What Changed

Karnataka operationalised digital e-stamping on KAVERI-2 by a notification dated 16 January 2026. Stamps generated there are linked to a specific instrument and carry the same legal status as traditional stamp paper.

Who It Affects

Every business executing agreements in Karnataka, including office leases, partnership deeds, vendor contracts and property documents. Older SHCIL certificates bought earlier remain proof of duty already paid for those documents.

How It Works

Users generate the e-stamp online through the Digital e-Stamp module, pay through authorised digital channels and receive a stamp tied to the instrument. Check the KAVERI portal for the current step-by-step flow.

Verification

The KAVERI-2 system records each digital e-stamp with an audit trail, so banks and registration offices can verify it in real time. Ask the counterparty for the e-stamp reference and confirm it through the state system.

Karnataka example: A Bengaluru startup leases an office at ₹1,00,000 a month for 11 months with a ₹6,00,000 deposit. At 0.5% of (₹11,00,000 + ₹6,00,000), uncapped duty is ₹8,500. The widely quoted ₹500 cap is generally applied to residential leases of up to a year. Commercial and industrial leases may fall under a different rate, so confirm the correct article for an office lease with the Sub-Registrar before paying.

E-Stamping in Maharashtra

SHCIL does not run e-stamping in Maharashtra. Instead, stamp duty is paid through three routes.

GRAS Challan

The Government Receipt Accounting System (gras.mahakosh.gov.in) lets you pay stamp duty online as a challan. You get a GRN number, which serves as proof of payment for your Maharashtra document.

e-SBTR

The electronic Secured Bank and Treasury Receipt is issued by authorised banks. You pay at the bank, and it prints a secure receipt that acts as stamp paper for your agreement.

Franking

Authorised banks and agents can frank the document, printing a stamp-duty impression directly on it. Franking is still widely used in Mumbai and Pune for agreements and affidavits.

Online Registration

Maharashtra's Department of Registration and Stamps (IGR) offers online leave and licence registration with Aadhaar-based biometric verification. Duty and registration fees are paid through GRAS during the process.

Maharashtra example: A Pune company takes a leave and licence of ₹80,000 a month for 11 months with a ₹4,00,000 deposit. Total rent = ₹8,80,000. Notional interest on deposit at 10% a year for 11 months ≈ ₹36,667. Base ≈ ₹9,16,667. Duty at 0.25% ≈ ₹2,292, plus registration fees. Registration is compulsory.

How to Pay Stamp Duty via GRAS (Maharashtra)

1. Visit gras.mahakosh.gov.in and choose "Pay without registration" (or log in).
2. Select the Department "IGR" and the payment type "Stamp Duty".
3. Choose the district and Sub-Registrar office.
4. Enter party details, property or document details and the amount.
5. Pay through net banking or card.
6. Download the challan with the GRN number and attach it to your document.

You can verify a GRAS payment later using the GRN on the same portal.

Common Mistakes

• Assuming SHCIL works everywhere: Maharashtra doesn't use SHCIL, and Karnataka has moved to KAVERI-2. Buying "e-stamp" from an unofficial site for these states is risky.
• Skipping registration in Maharashtra: Leave and licence agreements must be registered. An unregistered one can't be relied on in a dispute.
• Copying formulas across states: Maharashtra adds notional interest on the deposit, while Karnataka adds the deposit itself. Neither matches Delhi.
• Using old procedures: Karnataka's process changed in 2026, so older online guides may be out of date.

Frequently Asked Questions (FAQs)

Does Karnataka still use SHCIL e-stamp paper?

Karnataka operationalised digital e-stamps on KAVERI-2 from January 2026. Check the KAVERI portal or the Department of Stamps and Registration for current options.

How do I pay stamp duty online in Maharashtra?

Through the GRAS portal (gras.mahakosh.gov.in). Select IGR, choose stamp duty, enter the details, pay online and keep the GRN challan as proof.

What is e-SBTR in Maharashtra?

It is the electronic Secured Bank and Treasury Receipt, a secure stamp duty receipt issued by authorised banks that works as stamp paper.

Is registration compulsory for rent agreements in Maharashtra?

Yes. All leave and licence agreements in Maharashtra must be registered, and online registration is available through the IGR portal.

What is the stamp duty on rent agreements in Karnataka?

Commonly 0.5% of the average annual rent plus deposit, capped at ₹500 for qualifying leases. Confirm current rules before paying.

How do I verify a GRAS challan?

Enter the GRN number on the GRAS portal to check the payment status and details.

Conclusion

Karnataka and Maharashtra are moving faster than most states toward fully digital stamp duty, but their systems are state-specific. Know which route your state uses, calculate the duty on the correct base, register where required and keep digital proof of payment.

See our e-stamp paper online guide for SHCIL states, or contact the StartupFlora team for help with agreements and business registration.