Latest update 21st Aug 2019 - Starting Sep 1st, STT on exercised options would be on the intrinsic value , so truly no more STT trap.
The discussion on the below thread becomes redundant after this update.
An amazing news for all option traders out there. Finally, exchanges have found a fix for the STT anomaly on exercised options. Here is link to the BSE circular with the announcement, and this for the NSE circular.
So on the expiry day, there will be an option to not exercise certain strikes of options (those which are expiring just ITM and where STT is more than the intrinsic value of the option).
Congrats everyone, I am feeling ecstatic.