₹50 Per Litre Excise Duty Imposed on Aviation Fuel with Immediate Effect

Seeks to amend the Eighth Schedule to Finance Act, 2002 to insert Aviation Turbine Fuel in the Schedule and prescribe Special Additional Excise Duty on it.

The Ministry of Finance (Department of Revenue) issued Notification No. 07/2026-Central Excise dated 26 March 2026, invoking powers under section 3B of the Central Excise Act, 1944 read with section 147 of the Finance Act, 2002. The Central Government, being satisfied that immediate action was necessary, introduced a Special Additional Excise Duty on Aviation Turbine Fuel (ATF) falling under heading 2710 of the Fourth Schedule to the Central Excise Act. Accordingly, the Eighth Schedule to the Finance Act, 2002 has been amended to insert a new entry prescribing a duty rate of Rs. 50 per litre on ATF. This insertion comes after Item No. 2 in the schedule. The notification has been brought into force with immediate effect, thereby making the levy applicable without delay. The amendment effectively imposes a new excise duty burden on ATF through a statutory schedule modification.

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 07/2026-Central Excise | Dated: 26th March, 2026

G.S.R. 206(E)—WHEREAS, in exercise of powers under Section 3B of Central Excise Act 1944 (1 of 1944), the Central Government is satisfied that the Special Additional Excise Duty be levied under section 147 of the Finance Act, 2002 (No. 20 of 2002) on Aviation Turbine Fuel falling under heading 2710 of the Fourth Schedule to the Central Excise Act 1944 (1 of 1944), and that circumstances exist which render it necessary to take immediate action.

NOW, therefore, in pursuance of section 147 of the Finance Act, 2002, the Central Government, hereby directs that the Eighth Schedule to the said Finance Act, 2002, shall be amended in the following manner, namely: –

In the Eighth Schedule to the Finance Act, 2002, after Item No. 2 and the entries relating thereto, the following Item S. No. and entries shall be inserted, namely: –

2. This notification shall come into force with immediate effect.

[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.