The MCD has integrated the General Trade/Storage License (GTL) with property tax. A trader’s property tax receipt will now serve as their license, ending the need for separate applications and simplifying compliance for businesses in Delhi.
In a major push to streamline business processes in the national capital, the Municipal Corporation of Delhi (MCD) on Tuesday approved a significant reform that will integrate the General Trade/Storage License (GTL) with the property tax system. The move, passed in the MCD House, aims to simplify compliance for traders and reduce bureaucratic hurdles long associated with obtaining trade licenses.
How the New System Works
Under the new framework, business owners will no longer be required to file a separate application or maintain an individual trade license document. Instead, the license will be automatically endorsed on the annual property tax payment receipt. A trader’s property tax slip, once generated, will serve as the valid GTL, provided the establishment adheres to existing pollution control norms, fire safety requirements, and other statutory compliances.
Simplified Fee Structure
The license fee has also been streamlined, with the MCD setting it at 15% of the applicable property tax for the premises. This marks the end of the earlier multi-variable fee structure, which depended on trade type, covered area, and the category of locality, factors that often led to confusion and disputes. According to MCD officials, internal assessments indicate that the new model will remain revenue-neutral while enhancing fairness and predictability for traders across sectors.
A ‘Historic Step’ for Delhi’s Businesses
Welcoming the reform, Delhi Mayor Raja Iqbal Singh described the decision as a “historic step” toward transparent and citizen-friendly governance. He said the overhaul would provide substantial relief to the city’s business community by eliminating redundant processes and reducing opportunities for harassment. “By merging the licensing process with property tax, the MCD has made the system simpler, more transparent, and truly business-friendly,” he noted.
Boosting Ease of Doing Business
Officials also said the revised system would reduce field inspections by removing the earlier requirement for inspectors to assess multiple parameters for license approval. This, they added, would curb rent-seeking behaviour and bolster a trust-based compliance mechanism. The reform is expected to benefit thousands of traders across Delhi and to form a key component of MCD’s broader efforts to improve urban governance and ease of doing business indicators.
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