The Central Government, through Notification No. 29/2026-Central Excise dated June 10, 2026, has amended Notification No. 3/2021-Central Excise to extend exemption from the additional duty of excise in the nature of Agriculture Infrastructure and Development Cess (AIDC) to specified higher ethanol-blended petrol variants. New serial numbers 3C to 3F have been inserted, granting a Nil rate of AIDC on petrol blends containing 22%, 25%, 27% and 30% ethanol by volume. The exemption is available only where the motor spirit component has suffered the appropriate excise duties and the ethanol component has borne the applicable Central, State, Union Territory or Integrated GST. Further, the ethanol-blended petrol must conform to Bureau of Indian Standards specification IS 19850. The amendment reflects the Government’s continued policy initiative to encourage higher ethanol blending through tax incentives, thereby promoting cleaner fuels, supporting energy diversification and advancing national sustainability objectives.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 29/2026-Central Excise | Dated: 10th June, 2026
G.S.R. 465(E).— In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 125 of the Finance Act, 2021 (13 of 2021), 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. 3/2021-Central Excise, dated the 1st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 85(E), dated the 1st February, 2021, namely:-
In the said notification, in the TABLE, after S. No. 3B and the entries relating thereto, the following S. Nos. and entries shall be inserted, namely:
| (1) | (2) | (3) | (4) |
| “3C. | 2710 12 | 22% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 78% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 22% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 3D. | 2710 12 | 25% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 75% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 25% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 3E. | 2710 12 | 27% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 73% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 27% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 3F. | 2710 12 | 30% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 70% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 30% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil”. |
[F. No. 190354/295/2021-TRU]
DHEERAJ SHARMA, Under Secy.
Note:- The principal notification No. 03/2021-Central Excise, dated the 1st February, 2021 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 85(E), dated the 1st February, 2021 and was last amended vide notification No. 15/2022-Central Excise, dated the 12th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 536 (E), dated the 12th July, 2022.
