Traders Flag Confusion As MCD Delays GTL-Property Tax Integration

Traders in the national capital have raised concerns over delays in linking the general trade license (GTL) with the property tax system by the Municipal Corporation of Delhi (MCD), despite the April 30, 2026, deadline for renewals.

In December last year, MCD had approved a proposal to integrate the general trade and storage license with the property tax system. Under the plan, the license fee is to be fixed at 15% of the applicable property tax and paid along with the annual property tax.

However, traders said the integration has not been implemented so far, leading to confusion over compliance.

With no change in the deadline, they were compelled to renew licenses under the current system to avoid penalties.

"The deadline remained until April 30, and the new system is not in place. Traders have no option but to follow the old process," said Nitin Gupta, president of the Kamla Nagar Market Association.

"Under the new scheme, for example, if annual property tax is ₹50,000 for any property, the license fee would have been ₹7,500, which would be far less than what traders are paying as separate license fee," Gupta said, adding that trade license fees are calculated based on the size of the establishment which is classified in category A, B, C, D.

He added that failure to meet the deadline attracts a 5% interest, adding to concerns amid the lack of clarity.

According to traders, the license renewal process began on April 1 and ended on Thursday, after which the interest clause came into effect.

Officials said the delay is due to procedural issues, one of which remains who is responsible for payment. While property tax is to be paid by the owner or occupier, the trade license fee may be paid by either the business owner or the property owner, creating complications in assigning a single login for compliance.

"These issues are being resolved. Integration is in process and will take a few more days," a senior MCD official said, adding that traders have been advised to continue with the current system for now to avoid penalties.

The official indicated that the integrated system could be made operational in coming week.

Traders also flagged broader concerns. KK Gupta of the Iron and Steel Merchants Welfare Association in Naraina said that despite a large number of businesses requiring licenses, compliance levels remain low.

"The implementation will lead to ease of doing business," he said.

According to official data, a total of 43,178 licenses were issued between April 1, 2025 and March 31, 2026, generating a revenue of ₹118.03 crore for the corporation. The City Zone (CNZ) recorded 3,634 licenses and the highest revenue of ₹15.70 crore, followed by South Zone (SZ) with 3,826 licenses and ₹13.12 crore.

Traders said the proposed linkage could eventually simplify payments and reduce the burden of separate fees, but the lack of timely implementation has left them uncertain during the current renewal cycle.