Gujarat Electricity Duty Act, 1958 · s.3(3)
Furnace electricity duty: 10% instead of 15% on the process load
Gujarat charges electricity duty at 15% of consumption charges on industrial HT power. For electro-metallurgical, electrolytic and electro-chemical processes — in practice, the electric furnace load — a 1987 notification under section 3(3) brings it down to 10%, on power measured by a separate sub-meter sealed by the DISCOM.
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Example: a melting unit with ₹40 lakh a month of consumption charges on its furnace sub-meter pays ₹4 lakh of duty instead of ₹6 lakh — ₹24 lakh a year less.
- 10%duty on the sealed process sub-meter
- 15%standard rate for industrial HT power
- Form E8emailed to the electricity duty office
What is the furnace electricity duty relief?
Under section 3(3)(a) of the Gujarat Electricity Duty Act, 1958, the State can reduce duty for electro-chemical, electrolytic and electro-metallurgical processes. Notification of 4 September 1987 sets that relief at 10% of consumption charges, against the 15% charged on industrial HT power. It applies only to the process power recorded on a separate sub-meter sealed by the DISCOM, and the unit applies for it on Form E8.
- Legal basis
- Gujarat Electricity Duty Act, 1958, section 3(3)(a); Notification GHU/87/51/ELD/1187/6023/K dated 4 September 1987, cited on the official Form E8.
- Standard rate
- Industrial HT power: 15% of consumption charges (Schedule I, Part I, item 3).
- Relief rate
- 10% of consumption charges on the process power.
- Which power
- Only what the separate, DISCOM-sealed sub-meter records. Without a separate meter, the higher rate applies to everything (rule 10).
- Which processes
- Electro-metallurgical, electrolytic and electro-chemical — Form E8 treats it as the furnace load, asking for the furnace bill and meter.
- How to apply
- Download Form E8 from the CEICED application portal and email it with the documents to coll-off-ced@gujarat.gov.in.
- Who decides
- The electricity duty office, now under the Finance Department: the Chief Commissioner of State Tax is the Commissioner of Electricity Duty.
Where it matters most. Melting and smelting on electric furnaces, and electrolytic plants.
- Bhavnagar, Sihor — steel melting and re-rolling
- Gandhidham, Kutch — steel and ferro-alloys
- Rajkot — foundries with induction furnaces
- Ahmedabad — castings and alloys
- Bharuch, Dahej — electro-chemical plants
What is current in 2026
- Electricity duty is now run by the Finance Department. Since January 2024 the Commissioner of Electricity Duty is the Chief Commissioner of State Tax; the old Collector of Electricity Duty title is replaced.
- Form E8, by email. The application starts on the CEICED portal, where the form is downloaded, and goes by email to coll-off-ced@gujarat.gov.in. The relief certificate comes back by email, with a copy to your DISCOM.
- The meter is the claim. Only the separately sub-metered, DISCOM-sealed process load gets 10%. The rest of the connection stays at 15%.
- New units come first under the five-year exemption. A new industrial undertaking pays no duty for five years; the 10% relief matters after that, and for every existing furnace unit now.
Which units and which power qualify
The test is the process, not the word “furnace”: electricity used for electro-metallurgical, electrolytic or electro-chemical processes by an industrial undertaking. In practice the relief is claimed for the electric furnace load, recorded on its own sealed sub-meter.
Gets 10%
- Induction and arc furnace load for melting, smelting or alloying, on a sealed sub-meter
- Electrolytic and electro-chemical process load, metered separately
- HT industrial consumers, who otherwise pay 15%
Stays at the normal rate
- Auxiliaries, lighting, offices and the rest of the plant
- Process power that is not on a separate, sealed meter
- Colony, canteen or club load — Form E8 asks for these sub-meters separately
On an LT connection the relief makes no practical difference: industrial LT power already pays 10%. The gain is on HT power, where the standard rate is 15%.
How much the relief saves
The saving is 5% of the consumption charges on the furnace sub-meter: 15% minus 10%. On ₹40 lakh a month of furnace consumption charges, that is ₹2 lakh a month and ₹24 lakh a year.
Swipe sideways to see every column
| Power | Rate of duty | On ₹40 lakh a month |
|---|---|---|
| Industrial HT power — standard | 15% | ₹6 lakh |
| Electro-process load on a sealed sub-meter | 10% | ₹4 lakh |
| Industrial power used exclusively at LT | 10% | ₹4 lakh |
| New industrial undertaking, first five years (with the exemption certificate) | Exempt | ₹0 |
“Consumption charges” are what you pay the DISCOM, excluding meter charges, interest on late payment, fuse-call and reconnection charges, and transmission losses.
The relief in numbers
Four illustrations: a large melting shop, a foundry, what happens to the rest of the connection, and a small LT unit that gains nothing.
How to get the furnace relief, step by step
Seal a separate sub-meter on the process load, download Form E8 from the CEICED portal, and email it with the documents to the electricity duty office.
Get the furnace sub-meter installed and sealed
A separate meter or sub-meter on the furnace or process load, sealed on site by the DISCOM (sealing proforma-15).
Before you applyDownload Form E8
From the CEICED application portal, under the applications for electricity duty exemption and appropriate rate.
Fill it in and attach the documents
Connection number, connected load, DISCOM, the furnace bill, meter number and sealing date, raw materials and products with HSN codes, PAN and GSTIN.
Email it to the electricity duty office
Send the signed form and documents to coll-off-ced@gujarat.gov.in.
Get the relief certificate
After verification the certificate is emailed to you, a copy goes to your DISCOM, and the original is posted. Check the next bills carry 10% on the furnace meter.
- Last six months’ electricity billsthe connection that feeds the furnace
- Process flow chartshows the electro-process
- Sub-meter sealing proforma-15sealed on site by the DISCOM
- DG set papers, if one runsregistration, six months’ use and duty paid
- Last year’s audit reportfor the unit
- Self-declarationas on Form E8
Where the furnace relief goes wrong
- No separate meter.Without a DISCOM-sealed sub-meter the higher rate applies to all the power.
- Assuming the whole connection gets 10%.Only the process load does; the rest stays at 15%.
- Applying while the five-year exemption runs.A new unit pays no duty yet. Line the relief up for when the exemption ends.
- Not checking the bills after the certificate.The DISCOM applies the rate; a wrong rate on the bill has to be corrected.
- Expecting a gain on LT.Industrial LT power already pays 10%.
- Out-of-date contacts.Electricity duty is now administered by the Finance Department’s State Tax office, not the old collector’s office.
Furnace duty relief: questions we get asked
What is the furnace electricity duty relief in Gujarat?
Electricity used for electro-metallurgical, electrolytic and electro-chemical processes pays electricity duty at 10% of consumption charges instead of the 15% charged on industrial HT power. The basis is section 3(3)(a) of the Gujarat Electricity Duty Act, 1958 and a notification of 4 September 1987.
Does the 10% rate apply to the whole factory connection?
No. Only the process power recorded on a separate meter or sub-meter, sealed by the DISCOM, is charged at 10%. The rest of the connection pays the normal rate, and without a separate meter the higher rate applies to all the power.
Which processes qualify?
Electro-metallurgical, electrolytic and electro-chemical processes carried on by an industrial undertaking. The application, Form E8, treats it as the furnace load and asks for the furnace purchase bill, the furnace meter number and its sealing date.
Our furnace runs on an LT connection. Is there any benefit?
In practice no: industrial power used exclusively at LT already pays electricity duty at 10% of consumption charges. The relief matters on HT power, where the standard rate is 15%.
How do we apply?
Download Form E8 from the CEICED application portal, fill it in, and email it with the documents to coll-off-ced@gujarat.gov.in: the last six months’ bills, a process flow chart, the sub-meter sealing proforma-15, DG set papers if one is used, last year’s audit report and a self-declaration.
Who issues the relief certificate now?
The electricity duty office, which is now under the Finance Department: since January 2024 the Chief Commissioner of State Tax is the Commissioner of Electricity Duty. The certificate is emailed to the applicant, with a copy to the DISCOM, and the original is posted.
Is the relief permanent?
It has no fixed end date in the official descriptions, but it lasts only while the 1987 notification stays in force and the sub-metered power is used for the qualifying process.
We are a new unit with the five-year electricity duty exemption. Do we need this?
Not yet. A new industrial undertaking pays no electricity duty for five years from the start of production. The 10% relief becomes valuable when that exemption ends.
Can we recover duty paid at 15% before the relief?
The rules allow a refund of excess duty if claimed within 12 months, and an application to correct a wrong rate has its own time limit. Whether earlier bills can be corrected depends on the date the relief takes effect — apply as soon as the sub-meter is sealed.
Does the relief cover power from our DG set?
Duty on self-generated power is charged per unit, at 60 paise a unit for an industrial undertaking. Form E8 asks for the DG set’s registration and duty details if one is used; we check how it is treated case by case.
Legal basis and official sources
This page follows the Gujarat Electricity Duty Act, 1958, the Bombay Electricity Duty (Gujarat) Rules, 1986, and the official Form E8 on the CEICED portal.
Gujarat Electricity Duty Act, 1958
Schedule I rates (HT 15%, LT 10%), section 3(3) power to reduce duty for electro-processes, and the five-year exemption for new units.
Read the ActCEICED application portal
Form E8 for electro-chemical, electrolytic or electro-metallurgical processes, with the document list and the email route.
Open the portalNotes. The 1987 notification is cited on the official Form E8; its full Gazette text sets the exact conditions, which the electricity duty office applies. Worked examples are illustrations.
We get the sub-meter sealed, prepare Form E8 with the process documents, and follow it until your bills carry 10%.
- Process review: does your load qualify
- Sub-meter sealing with the DISCOM
- Form E8 and documents, emailed to the duty office
- Bill checks after the certificate
Running electric furnaces on HT?
Send us six months of bills. We check whether the process load qualifies, get the sub-meter sealed, and file Form E8.