Govt Cuts Special Excise Duty on Aviation Fuel to Ease Air Travel Costs; Effective March 2026:

The Government has reduced the Special Additional Excise Duty on Aviation Turbine Fuel, capping it at Rs 29.5 per litre to support the aviation sector.
Govt Revises ATF Excise Duty, Caps Levy at Rs 29.5 per Litre

Govt Cuts Special Excise Duty on Aviation Fuel to Ease Air Travel Costs; Effective March 2026
The Central Government of India believes that it is in the public interest to revise the duty on certain excisable goods. Consequently, a notification dated March 26, 2026, has been issued by the Tax Research Unit (TRU) under the Department of Revenue that primarily focuses on the Special Additional Excise Duty applicable to select excisable goods.
According to the notification, Aviation Turbine Fuel (ATF), classified under tariff heading 2710, will now attract a reduced rate of duty. The government has granted an exemption on the existing duty of the said good, limiting the payable Special Additional Excise Duty to Rs 29.5 per litre. Meaning, tax will be imposed on any duty amount exceeding this specified rate.
The government has taken the aforementioned action in pursuance of its powers granted under section 5A of the Central Excise Act, 1944 (1 of 1944), read with section 147 of the Finance Act, 2002 (20 of 2002), with an aim to manage costs associated with air travel and related industries.
NOTE: The directions have already come into effect with the issuing date of the notification, i.e., from March 26, 2026.
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Saloni Kumari
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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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