Furnace Duty Reduction
NEOAPEX SAVER PRIVATE LIMITED
Furnace Duty Reduction
For manufacturing units operating furnaces, electricity is not just a utility — it is one of the largest recurring costs in production. As a High Tension (HT) consumer, you are already paying 15% electricity duty on your bill as standard.
What many furnace-based units do not check is whether they qualify for a concessional duty rate under the Gujarat Electricity Duty Act — a reduction that applies for the lifetime of the unit, not just for a limited exemption period.
What This Means
Under the Gujarat Electricity Duty Act, certain HT consumers operating furnaces are eligible for a reduced electricity duty rate of 10% instead of the standard 15% — a 5 percentage point reduction on every electricity bill, applied permanently for as long as the unit is operational.
This is not a general benefit available to all industrial consumers. Eligibility depends specifically on how your power connection is classified and how your furnace operations are structured under the applicable tariff and duty framework.
Where Businesses Miss Out
Most furnace-based units focus on managing electricity consumption — but rarely review their electricity duty structure. If your unit qualifies for the concessional rate but has not applied, you are paying 15% duty when you should be paying 10% — and that difference compounds with every billing cycle.
No one flags it automatically. The benefit does not apply unless you claim it.
How We Help
We conduct a detailed review of your power connection classification, tariff category, and furnace operations to determine whether your unit qualifies for the reduced duty rate.
If it does, we handle the complete process:
- HT connection and furnace classification review — verifying your tariff category and furnace setup eligibility under the Gujarat Electricity Duty Act, 1958
- Application filing via CEICED portal — preparing and submitting the duty reduction application with all required documents including HT sanction letter, electricity bills, Udyam registration, GST certificate, and production date proof
- Follow-up until the Electricity Duty Exemption Certificate is issued by CEICED
A Practical Impact
Electricity duty is charged on every bill — month after month, year after year. A 5 percentage point reduction on the duty component of a large HT bill is not a marginal saving. For furnace-heavy operations with high monthly consumption, it translates into a consistent, recurring cost reduction that improves margins across the lifetime of the unit.
If your unit uses furnaces and draws power on an HT connection, this is worth checking — once.
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NeoApex Saver Pvt Ltd helps businesses claim maximum government subsidies and incentives with expert guidance, accurate documentation, and end-to-end support. With 20+ years of experience and 1000+ successful projects, we ensure a smooth, reliable, and result-driven process.