Gujarat Electricity Duty Act, 1958 · Schedule II
DG set registration and electricity duty on captive power
A diesel generator needs two things in Gujarat: the Electrical Inspector’s approval before it is commissioned, and registration on Form C for electricity duty. Power you generate and use pays 60 paise a unit — unless the sets on site add up to 125 kVA or less, or your unit is in its exemption years.
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Example: 625 kVA of sets supplying 10,000 units a month pay ₹6,000 of duty a month, ₹72,000 a year. A new unit in its five-year exemption pays none.
- 60 paisea unit on self-generated power used
- 125 kVAtotal capacity at or below which duty is exempt
- Form Cduty registration, even when exempt
On this page
What DG set registration means in Gujarat
Two separate steps. First, a generating set above 10 kW (12.5 kVA) must be inspected by the Electrical Inspector before it is commissioned. Second, anyone who generates power for their own use must register the set on Form C under the electricity duty rules, then pay duty and file a return every month. An industrial unit pays 60 paise a unit on the power it generates and consumes; sets totalling 125 kVA or less are exempt, but must still be registered.
- Legal basis
- Gujarat Electricity Duty Act, 1958, Schedule II; Bombay Electricity Duty (Gujarat) Rules, 1986, rule 9; CEA Safety Regulations, 2023, with Gujarat’s notification on inspection of generating units.
- Inspection before commissioning
- Generating units above 10 kW (12.5 kVA) — Electrical Inspector, after plan approval.
- Duty registration
- Form C, online, after the set is energised. No fee. Needed even for exempt sets.
- Rate of duty
- 60 paise a unit on self-generated power consumed by an industrial unit (since 1 August 2019; 55 paise before).
- Small sets
- Aggregate capacity of 125 kVA or less: exempt from duty, with a Nil return each month.
- Payment and returns
- By the 10th of the following month, online. Interest is charged on late payment.
- Who administers duty
- The Commissioner of Electricity Duty — since January 2024, the Chief Commissioner of State Tax, Finance Department.
Where DG power runs most. Continuous-process plants that cannot drop a batch when the grid trips.
- Ankleshwar, Vapi — chemicals and pharma
- Surat — textile processing
- Morbi — ceramic kilns
- Rajkot — engineering and castings
- Sanand, Changodar — food and packaging
What is current in 2026
- Duty is now run by the Finance Department. The Commissioner of Electricity Duty is the Chief Commissioner of State Tax; returns and payments are on the electricity duty e-payment portal.
- Two approvals, not one. The Electrical Inspector’s approval comes before commissioning; the Form C duty registration comes after the set is energised.
- Nil returns still count. Exempt sets — 125 kVA or less, or covered by an exemption certificate — must file a Nil e-return every month.
- 60 paise is the standard rate for industrial units, not a concession. New units avoid it for five years; SEZ units for ten.
The two registrations, side by side
The Electrical Inspector checks that the set is safe to run; the electricity duty office records it so that duty can be charged or the exemption tracked. You need both.
Swipe sideways to see every column
| Electrical Inspector approval | Electricity duty registration | |
|---|---|---|
| Law | CEA Safety Regulations, 2023; Gujarat notification of 1 February 2016 | Bombay Electricity Duty (Gujarat) Rules, 1986, rule 9 |
| Who needs it | Generating units above 10 kW (12.5 kVA) | Everyone generating power for own use, exempt or not |
| When | Before commissioning: plan approval, then test and inspection | After the set is energised: Form C online |
| Key papers | Layout and earthing drawings, single-line diagram, DG details, test certificates | Genset invoice, inspectorate energising certificate, commissioning proof, meter test and sealing certificate |
| After that | Inspection again if the installation changes | Monthly duty and e-return by the 10th; fresh registration if a set is added or replaced |
How much duty, and when it is exempt
An industrial unit pays 60 paise for every unit of self-generated power it consumes. Duty is on units consumed, not generated: power used to run the generator itself is exempt when it is metered and sealed. Three situations bring the duty to nil.
Swipe sideways to see every column
| Situation | Duty | Condition |
|---|---|---|
| Standard | 60 paise a unit | Sets totalling more than 125 kVA |
| Small sets | Exempt | All sets on site add up to 125 kVA or less; Nil e-return monthly |
| New industrial unit | Exempt for 5 years | Covers power from any source; Form E within 90 days of production |
| SEZ processing-area unit | Exempt for 10 years | From the date of production |
DG duty in numbers
Four illustrations: a backup set, a heavy user, a small set that is exempt but still registered, and two small sets that together cross 125 kVA.
How to register a DG set, step by step
Get the Electrical Inspector’s approval before commissioning, seal the DG meter, register on Form C, and then pay or file a Nil return every month.
Plan approval from the Electrical Inspector
Submit layout, earthing and single-line drawings with the DG details for any set above 10 kW (12.5 kVA).
Before installationTest and inspection, then energising
After installation the Inspector tests the set and issues the certificate to energise it.
Before commissioningSeal the DG meter
A static meter on the DG output, tested in the DISCOM laboratory and sealed on site.
At commissioningRegister on Form C
Apply online on the CEICED portal with the invoice, energising certificate, commissioning proof and meter sealing certificate.
After energisingPay and file every month
Pay the duty — or file a Nil return if exempt — by the 10th of the next month on the e-payment portal. Re-register if a set is added or replaced.
Monthly
- Genset purchase invoicefor each set
- Inspectorate certificate to energiseChief Electrical Inspector or Electrical Inspector
- Commissioning reportproof of the date of commissioning
- Meter test and site-sealing certificateDISCOM laboratory
- Signed Form Cwith date and place
- Change of name or ownership proofonly if applicable
Where DG set compliance goes wrong
- Commissioning before inspection.Sets above 12.5 kVA need the Electrical Inspector’s approval first.
- Skipping Form C because the set is small.Sets of 125 kVA or less are exempt from duty, not from registration.
- Missing Nil returns.Exempt sets still file a return every month.
- Counting sets one by one.The 125 kVA test is on the total capacity of all sets on site.
- Adding a set without re-registering.An extension or replacement needs a fresh application.
- Paying on units generated.Duty is on units consumed; the generator’s own sealed auxiliary use is exempt.
DG set registration: questions we get asked
Is DG set registration mandatory in Gujarat?
Yes. Anyone who generates electricity for their own use must register the generating set on Form C with the electricity duty office, even if the set is exempt from duty. Separately, a set above 10 kW (12.5 kVA) must be inspected by the Electrical Inspector before it is commissioned.
What is the electricity duty on DG set power?
For an industrial undertaking, 60 paise for every unit of self-generated power consumed, under Schedule II of the Gujarat Electricity Duty Act, 1958. The rate has applied since 1 August 2019; it was 55 paise before.
Are small DG sets exempt from electricity duty?
Yes, if all the sets on site together have a capacity of 125 kVA or less. They must still be registered and a Nil e-return filed every month.
Does the five-year exemption for new units cover DG power?
Yes. A new industrial undertaking is exempt from electricity duty on its industrial consumption from any source, including self-generation, for five years from the start of production, if it applies on Form E within 90 days of production.
How long are SEZ units exempt?
Ten years from the date of production for units in the processing area of a special economic zone, under section 15(2) of the Gujarat Special Economic Zone Act, 2004.
When is the duty paid?
By the 10th of the month after the consumption, online on the electricity duty e-payment portal, together with the return. Late payment attracts interest.
Is duty charged on the power the generator uses itself?
No. Auxiliary consumption for running the generating set is not liable to duty, provided it is recorded on a separate meter sealed by the supplier and verified by the duty office.
What documents are needed for Form C?
The genset purchase invoice, the inspectorate’s certificate to energise the set, proof of the commissioning date, the meter test and site-sealing certificate, and the signed Form C.
Do we need to register again if we add a set?
Yes. Under rule 9, an extension or replacement of a generating set needs a fresh application, and the 125 kVA test then applies to the new total capacity.
Who administers electricity duty now?
The Commissioner of Electricity Duty, who since January 2024 is the Chief Commissioner of State Tax in the Finance Department. Applications still start on the CEICED portal; payments and returns are on the electricity duty e-payment portal.
Legal basis and official sources
This page follows the Gujarat Electricity Duty Act, 1958, its 1986 rules, the CEA Safety Regulations, 2023 with Gujarat’s notifications on inspection, and the official electricity duty portals.
Gujarat Electricity Duty Act, 1958
Schedule II rates on self-generated power, and the five-year electricity duty exemption for new industrial units in Gujarat in section 3(2).
Read the ActAmendment raising the rate to 60 paise
Schedule II, item 4: 55 paise to 60 paise a unit for industrial undertakings, in force from 1 August 2019.
Read the BillCEICED application portal
Online registration of generating sets, and the electricity duty exemption applications.
Open the portalElectricity duty e-payment portal
Monthly payment and e-returns for generating sets, including Nil returns for exempt sets.
Open the portalNotes. The 125 kVA exemption is stated on the official duty portals as the current notification. Gujarat’s 10 kW (12.5 kVA) inspection threshold was notified in 2016 and is still listed by CEICED. Worked examples are illustrations.
We take a DG set from plan approval to Form C, and keep the monthly returns on time.
- Plan approval and inspection with the Electrical Inspector
- Meter sealing and Form C registration
- Monthly duty and Nil returns
- Five-year exemption on Form E for new units
Installing or adding a DG set?
Send us the set details. We handle the inspection, Form C and the monthly returns — and the exemption if your unit is new.