
Loading...
Law Update
Quick note
Below is the official summary and the reference document preview. Use “Open PDF” for full screen view.
A factory license that is valid in Gujarat does not necessarily imply that the licensee is up-to-date in terms of fees according to the new law. In case the factory license was issued/renewed based on the previous fee structure, and is still valid even after the year 2025, there will be extra payment due.
The Directorate of Industrial Safety and Health (DISH) – Gujarat sent a notification on 13 October 2026, wherein all those factory owners who are eligible to make the payment should pay the difference between the old and new factory license fee by 31 October 2026.
This directive comes after the implementation of the Code for Occupational Safety, Health and Working Conditions, 2020 and the rules on the same for the State of Gujarat, 2025. This directive also indicates a 25 percent surcharge to be added to the differential fee applicable if payment is late.
Factory owners should therefore check their existing licence records, find out whether any fee difference is due and complete the payment within the notified period. The requirement is particularly relevant to businesses that paid licence fees in advance for multiple years.
The October 2026 communication explains how the revised licensing fees will apply to new applications and certain existing factory licences.
| Particular | Details |
| Issuing authority | Directorate of Industrial Safety and Health (DISH), Gujarat |
| Notice date | 13 October 2026 |
| Applicable state | Gujarat |
| Subject | Payment of revised factory licence fees |
| Governing law | Occupational Safety, Health and Working Conditions Code, 2020 |
| State rules | Gujarat Occupational Safety, Health and Working Conditions Rules, 2025 |
| Affected businesses | Eligible factory occupiers holding licences valid beyond 2025 |
| Main requirement | Payment of the applicable difference between earlier and revised licence fees |
| Last date | 31 October 2026 |
| Payment website | https://dish.gujarat.gov.in/ |
| Payment option | PUBLIC USER LOGIN – FEE DIFFERENCE |
| Late-payment charge | Additional 25% of the relevant year's fee difference |
The communication was sent to the Joint Directors of Industrial Safety and Health in Ahmedabad, Rajkot, Surat and Vadodara. These offices have been instructed to implement the revised fee requirements in their respective areas.
Factory licence fees in Gujarat were previously collected under the Factories Act, 1948, and the Gujarat Factories Rules, 1963. These rules prescribed the amount businesses had to pay when applying for a factory licence or renewing an existing one.
Position was altered upon implementation of the new occupational safety and working conditions code. Central Government enforced the Occupational Safety, Health and Working Conditions Code, 2020 on 21st November, 2025.
Gujarat had already notified its Occupational Safety, Health and Working Conditions Rules, 2025. These rules contain provisions covering factory licensing, applications, renewals, amendments and the fees payable.
As explained in the DISH communication, fees for factory licensing activities relating to periods after 2025 are to be charged under the revised framework.
The issue arises mainly for factories that had already paid their licence fees for several years under the old system. Although those licences may still be valid, the amount originally paid may be lower than the fee required under the revised rules.
DISH Gujarat has therefore directed affected factory occupiers to settle the applicable difference.
The communication does not mean that every factory must obtain a fresh licence. It deals with revised fee collection and the outstanding amount payable by eligible existing licence holders.
The communication addresses two separate situations: factory owners applying for new licences or making changes to their existing licences, and factories that already hold licences covering periods beyond 2025.
Revised Fees for New Licences, Renewals and Amendments
For new factory licence applications, licence renewals and licence amendments relating to periods after 2025, businesses must follow the fee requirements prescribed under the OSH Code and the applicable Gujarat rules.
Factory owners planning to renew their licences should therefore check the revised fee schedule before submitting their applications.
The same applies where an amendment attracts an additional licence fee under the applicable rules.
Additional Payment for Existing Factory Licence Holders
The second part of the communication concerns factories whose licences remain valid beyond 2025.
Where the factory occupier previously paid licence fees under the Factories Act, 1948, and the Gujarat Factories Rules, 1963, the applicable difference under the revised fee structure must now be paid.
This is important because the original payment may have covered several years. A valid licence alone does not establish that the revised fee has been fully paid.
The factory owner needs to compare the earlier payment with the applicable revised fee and check the amount due through the official process.
Earlier and Revised Factory Licensing Framework
| Particular | Earlier framework | Revised framework |
| Governing law | Factories Act, 1948 | OSH Code, 2020 |
| State rules | Gujarat Factories Rules, 1963 | Gujarat OSH Rules, 2025 |
| Licence fees | Earlier prescribed schedule | Revised schedule under Rule 75 |
| New licence applications | Earlier applicable requirements | Revised requirements for the relevant period |
| Existing multi-year licences | Fees may already have been paid | Eligible occupiers must settle the applicable fee difference |
| Fee-difference payment | Not part of the earlier arrangement | Online facility specified by DISH Gujarat |
The change is primarily about the amount payable under the applicable rules. It should not be confused with a separate requirement to renew every existing licence.
The DISH Gujarat direction does not automatically apply to every business registered in the state.
It is aimed at factory occupiers whose licences and previous fee payments fall within the conditions mentioned in the communication.
Factories With Licences Valid Beyond 2025
The first point to check is the validity of the existing factory licence.
Factories holding licences that remain valid after 2025 should review whether their original licence fee was paid under the earlier rules.
This is particularly relevant where a licence was obtained or renewed for more than one year.
Factories That Paid Under the Old Fee Structure
The next point is whether the licence fee was paid under the Factories Act, 1948, and the Gujarat Factories Rules, 1963.
If the payment relates to a period covered by the revised fee framework, an additional amount may be due.
Factory owners should not assume that every earlier payment automatically creates an outstanding balance. The amount must be checked against the relevant licence period and applicable revised fee.
Factories With Outstanding Differential Fees
Where the revised fee exceeds the amount already paid for the relevant licence period, the applicable difference must be settled according to the DISH direction.
A factory owner should check the official amount rather than rely on a general estimate.
What about newly established factories?
New factory licence applications relating to periods after 2025 must follow the revised licensing fee framework. However, these applications are different from the fee-difference payment required for eligible existing licences.
Businesses applying for Factory Licence Registration in Gujarat should check the current rules and prescribed charges applicable to their applications.
The amount payable depends on the factory's licence details and the relevant government fee schedule.
Rule 75 of the Gujarat Occupational Safety, Health and Working Conditions Rules, 2025, contains the prescribed factory licence fees.
The schedule classifies factories according to two important details:
These categories determine the prescribed amount under the revised rules.
Selected Factory Licence Fees Under Rule 75
The following entries are taken from the revised Gujarat fee schedule. They show how the prescribed amount changes according to the worker and installed power categories.
| Installed power category | Maximum workers | Revised fee |
| Without power | Up to 20 | ₹390 |
| Up to 10 HP | 21–50 | ₹1,200 |
| Above 10 HP to 50 HP | 51–100 | ₹2,400 |
| Above 10 HP to 50 HP | 101–250 | ₹2,400 |
| Above 100 HP to 250 HP | 251–500 | ₹15,900 |
These are selected entries from the fee schedule, not the amount that every factory must pay as a fee difference.
The actual outstanding amount also depends on the earlier fee paid and the licence period involved.
Factory owners should review the complete fee schedule and the official payment details before making a payment.
What Should Businesses Check Before Paying?
There are four details worth checking carefully:
Businesses should also check whether the fee difference relates to more than one year.
The October communication does not prescribe a single flat fee increase for every factory. The payment must reflect the applicable licensing details.
DISH Gujarat has provided an online route for paying the outstanding factory licence fee difference.
Affected factory owners must use the official website and follow the instructions available through the designated facility.
Step 1: Open the DISH Gujarat Website
Go to the official website. This website is mentioned in the DISH message for payment of the difference in the factory license fee.
Step 2: Access the Fee Difference Section
The notice identifies the payment route as:
PUBLIC USER LOGIN – FEE DIFFERENCE
Open the relevant section and follow the instructions provided on the portal.
The exact login fields and identification requirements should be checked on the live government website.
Step 3: Verify the Factory Licence Information
Review the licence details associated with the factory.
Make sure the records relate to the correct industrial unit and licence period.
Where a business operates more than one licensed factory, the applicable payment details should be checked separately for each licence.
Step 4: Check the Outstanding Fee
Check the differential amount shown via the approved system. The differential amount must correspond to the right factory category, license period, and prior payment record.
In case there is any inconsistency or ambiguity regarding the amount, the company must clarify it with the relevant DISH department.
Step 5: Make the Payment
Make the payment using the online guidelines given by the government website.
Complete the transaction using the available official payment facility.
Businesses should avoid making payments through links or accounts that cannot be verified as belonging to the government system.
Step 6: Keep the Payment Receipt
Once the transaction is complete, you will have to retain the transaction confirmation.
This should be retained along with the licence details.
Retaining the acknowledgement can help the business confirm the transaction if any payment-related query arises later.
The communication will mention the website for payments and the Fee Difference portal. The personal portal screens and methods of payment should be verified since they are not provided for in the communication.
In case these fall under the purview of the DISH communication, factory occupiers shall pay the difference in factory license fee by 31st October 2026.
This is especially true for factories that are licensed even after 2025 and whose licence fee was paid under the old scheme.
Businesses should use the remaining period to review their licensing records and settle any outstanding amount.
It is also important to check that the payment is being made against the correct licence. A payment made for the wrong unit or licence may need further clarification with the authority.
The notification includes the deadline for submission and the additional fee for late payment. However, no general grace period is communicated.
In any case, the businesses need to comply with the specified date unless an extension is issued by DISH Gujarat.
The DISH Gujarat communication states that an additional 25% of the applicable fee difference for the relevant year is payable if the differential amount is not paid within the prescribed deadline.
This makes timely payment important for factories that have an outstanding balance.
How Does the 25% Late-Payment Charge Apply?
The charge relates to the relevant year's differential licence fee.
It should not be mistaken for an automatic 25% charge on the entire factory licence fee.
The fee which is payable beyond the deadline shall be calculated on the basis of the applicable difference in the fee and the payment conditions set out by the relevant authority.
It should also be noted that this fee should not be confused with the additional-fee requirements specified under Rule 77 of the Gujarat OSH Rules, 2025.
The October communication concerns payment of an outstanding difference under the revised fee framework. A delayed renewal application is a different licensing matter.
Does Missing the Deadline Automatically Cancel the Factory Licence?
The communication does not expressly state that the licence will automatically be cancelled or that factory operations must stop simply because the fee difference is not paid by 31 October.
It does specify the additional 25% payment requirement.
Any further regulatory action would need to be examined under the applicable rules and the circumstances of the individual factory.
For businesses, the immediate priority should be to avoid the additional charge and resolve the outstanding payment within the notified period.
The DISH Gujarat direction is mainly a payment-related compliance matter, but it also highlights the need to keep factory licensing records up to date.
Existing Factory Licence Holders
Businesses with multi-year licences should review the period covered by their original payments.
Even where the licence remains valid, the revised fee requirements may create an outstanding amount.
Businesses Planning Licence Renewal
Factories preparing to renew their licences should check the current fee schedule before submitting an application.
The revised rates may differ from the amounts paid under the earlier rules.
A renewal application should follow its own applicable procedure and timeline, separately from the October fee-difference direction.
Businesses Applying for a New Factory Licence
Manufacturers planning new facilities in Gujarat should consider the applicable factory licence fees while preparing their regulatory budget.
The fees must be checked against the current schedule and the details of the proposed factory.
Professional Factory Licence Registration services may help businesses understand the relevant application and compliance requirements.
Companies Operating Multiple Factories
Businesses with several licensed units should review their records carefully.
Each factory may have a different licensing period, worker category or installed power classification.
The company should therefore check the relevant licence and payment position for each affected unit rather than assume that one assessment applies to all facilities.
Factory owners do not need to begin a fresh licensing process simply because this communication has been issued.
The immediate task is to determine whether a fee difference is payable against an existing licence.
The following steps can help businesses complete that review.
The government notice establishes the applicable payment obligation. The additional record-checking steps are practical recommendations to help businesses complete the process correctly.
Keeping up with factory licensing requirements can be difficult when the governing rules, prescribed fees or application procedures change.
Businesses may need to check an existing licence, understand a new licensing requirement or apply for approval before starting manufacturing operations.
Corpseed provides professional assistance with factory licensing and related regulatory processes.
1. Factory Licence Registration Services
Businesses planning to establish a manufacturing facility can seek assistance with understanding the relevant factory licence registration process.
Corpseed's Factory Licence Registration services cover assistance with applicable licensing procedures and related documentation.
A factory licence application must follow the requirements prescribed by the competent authority.
2. Factory Licence Renewal Services
Factories approaching the end of their existing licence validity may require renewal assistance.
Businesses can seek support in understanding the renewal process, reviewing required information and preparing the relevant application.
The October 2026 fee-difference payment should not be treated as a substitute for licence renewal.
3. Factory Licensing Compliance Support
Existing factory owners may need guidance in understanding which licensing requirements apply to their businesses.
Corpseed can be contacted for assistance with relevant factory licensing and regulatory matters.
Where the issue concerns a government fee difference, the amount and payment requirements must be confirmed through DISH Gujarat.
4. Factory Setup Services
Businesses planning to establish new manufacturing facilities can also explore Corpseed's Factory Setup Services in India.
These services are relevant to industrial businesses seeking assistance with applicable setup and regulatory requirements.
Need Assistance With Factory Licence Registration, Renewal or Compliance in Gujarat?
If you are starting a factory, renewing an existing licence or reviewing your factory licensing requirements, contact Corpseed to discuss the assistance available for your business.
DISH Gujarat has directed eligible factory occupiers to pay the difference between the earlier and revised factory licence fees.
The condition is basically applicable to those factories that have licences which are not valid after the year 2025, as the payment was made as per the previous Factories Act and Gujarat Factories Rules.
The due date for this is 31st October 2026.
The communication also specifies an additional 25% charge on the applicable fee difference for the relevant year if payment is delayed.
Factory owners should review their licence validity, earlier payments and revised fee category before determining the amount payable.
Document Preview
Embedded reference document
Related
Explore more updates from the same department.