Seeks to amend Notification No. 08/2026-Central Excise dated 26.03.2026 to revise the Special Additional Excise Duty (SAED) rate on exports of Aviation Turbine Fuel (ATF) outside India.
Summary: The Ministry of Finance, Department of Revenue, has issued Notification No. 53/2026-Central Excise dated 30 September 2026, reducing the Special Additional Excise Duty (SAED) on Aviation Turbine Fuel (ATF) exports from ₹15 per litre to ₹10.5 per litre with effect from 1 October 2026. The notification further amends Notification No. 08/2026-Central Excise dated 26 March 2026 by substituting the rate specified against serial number 1 in column (4) of its Table. The immediately preceding rate of ₹15 per litre had been prescribed through Notification No. 50/2026-Central Excise dated 16 September 2026. Accordingly, the latest amendment reduces SAED by ₹4.5 per litre, or 30%. The amendment has been issued under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002.
Analysis of Reduction in SAED on ATF Exports
Notification No. 53/2026-Central Excise makes a targeted amendment to the SAED framework applicable to Aviation Turbine Fuel cleared for export outside India. It does not change the goods covered or the basic scope of the principal notification. It substitutes the effective SAED rate against serial number 1 of its Table with ₹10.5 per litre.
| Particulars | Rate |
|---|---|
| SAED applicable immediately before amendment | ₹15 per litre |
| Revised SAED from 1 October 2026 | ₹10.5 per litre |
| Reduction | ₹4.5 per litre |
| Percentage reduction | 30% |
| Effective date | 1 October 2026 |
The principal Notification No. 08/2026-Central Excise dated 26 March 2026 originally prescribed an effective SAED rate of ₹29.5 per litre on ATF cleared for export. The rate has since been revised periodically. It was revised to ₹33 per litre from 1 May 2026, followed by ₹9.5 per litre from 1 June 2026 through Notification No. 25/2026-Central Excise and ₹12.5 per litre from 16 June 2026 through Notification No. 31/2026-Central Excise.
The Government subsequently reduced the rate to ₹7.5 per litre from 1 July 2026 through Notification No. 37/2026-Central Excise. It was later revised to ₹14.5 per litre from 16 July, ₹22 per litre from 3 August and ₹19.5 per litre from 15 August 2026 through Notification No. 44/2026-Central Excise.
Thereafter, Notification No. 47/2026-Central Excise dated 1 September 2026 reduced the rate from ₹19.5 to ₹19 per litre. This was followed by Notification No. 50/2026-Central Excise dated 16 September 2026, which reduced it further to ₹15 per litre. Notification No. 53/2026 now brings the rate down to ₹10.5 per litre from 1 October 2026.
For an export clearance of 10 lakh litres of ATF, SAED at the immediately preceding ₹15 per litre rate would amount to ₹1.50 crore. At the revised ₹10.5 per litre rate, the corresponding liability would be ₹1.05 crore, resulting in a reduction of ₹45 lakh.
The principal notification operates by exempting qualifying ATF cleared for export from so much of the SAED leviable under Section 147 read with the Eighth Schedule to the Finance Act, 2002 as exceeds the rate prescribed in its Table. Accordingly, qualifying ATF export clearances covered by the notification will be subject to SAED at ₹10.5 per litre with effect from 1 October 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 53/2026-Central Excise | Dated: 30th September, 2026
G.S.R. 855(E).— In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 08/2026-Central Excise, dated the 26th March, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 207 (E), dated the 26th March, 2026, namely:-
In the said notification, in the Table, against serial number 1, in column (4), for the entry, the entry “Rs. 10.5 per litre” shall be substituted.
This notification shall come into force with effect from 1st October, 2026.
[F.No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.
Note.- The principal notification No. 08/2026-Central Excise, dated the 26th March, 2026 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 207 (E), dated the 26th March, 2026 and last amended by notification No. 50/2026-Central Excise dated 16th September, 2026 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 812 (E), dated 16th September, 2026.
