The Municipal Corporation of Delhi (MCD) has announced that the integration of property tax with the general trade licence (GTL) will become fully operational digitally by Monday, following criticism over a delay of nearly six months.
Software Modifications Underway
A senior official stated that some software modifications were still pending. "It will take one to two days to complete these changes and ensure smooth functioning of the system. We expect it to be fully operational by Monday," the official said.
New Fee Calculation Regime
Previously, the GTL fee was a fixed annual charge determined by the shop's square footage and the locality's category (A to H). Under the new regime, the GTL fee is calculated as 15% of the property tax. Officials claim that the fee will be reduced for property tax owners, but traders and building owners argue that the new process is more complicated.
Multiple Licences per Property
Each property has a unique property identification code (UPIC). One key change is that multiple general trade licences can now be issued against a single UPIC. However, there is little clarity on how property tax will be calculated in certain scenarios. For example, if a person rents out one floor of a multi-storey property for commercial use to three traders, questions arise: will the GTL fee be 15% of the property tax for the whole building or only for that floor? If multiple traders operate, will the 15% be divided among them?
Traders' Concerns
Traders have raised concerns about difficulties faced by building owners in obtaining GTLs when multiple shops operate from the same property, as the older system allowed only one licence per UPIC. An official said, "We are aware of the issue, which is why provisions are being incorporated in the updated system to enable the issuance of multiple licences from the same address or UPIC."
Deadline for Rebates
The integration issue has gained significance as June 30 is the deadline for getting rebates on advance payment of property tax. Nitin Gupta, president of Kamla Nagar Market, said, "April 30 was the last date for licence renewal. Since there was no clarity on MCD's decision, most traders renewed their licences at much higher rates under the old system to avoid penalties. Even now, no changes are visible on the website and there is no clarity for new applicants. Ideally, the civic body should have implemented the portal changes before issuing the order."
Compliance Challenges
While property tax is paid by the owner or occupier, the trade licence fee may be paid either by the business owner or the property owner, creating complications in assigning a single login for compliance. Another MCD senior official said, "These issues are being resolved and the integration process is under way."
KK Gupta of the Iron and Steel Merchants Welfare Association in Naraina questioned the fee calculation mechanism. "Why is the GTL fee being charged as 15% of the total property tax if commercial activity is being carried out in only 25% of the area? Ideally, the fee should be calculated on the commercial-use portion. The existing arrangement will either discourage compliance or force people to look for alternative arrangements," he said.
A trader noted, "Only 15% of traders are paying trade licence fee. If these issues continue, then MCD won't see any rise in licence fee payers."
Revenue Data
According to official data, 43,178 licences were issued between April 1, 2025, and March 31, 2026, generating revenue of Rs 118.03 crore for the corporation.
Delhi Pradesh Congress Committee president Devender Yadav said that despite writing to the chief minister, no relief has been provided to business establishments.
