The Central Government, through Notification No. 27/2026-Central Excise dated June 10, 2026, has amended Notification No. 28/2002-Central Excise to extend Nil special additional excise duty benefits to higher ethanol-blended petrol variants containing 22%, 25%, 27% and 30% ethanol by volume. New serial numbers 4E to 4H have been inserted, prescribing that the exemption will apply only where the motor spirit component has suffered applicable excise duties, including duties under the Central Excise Act, Finance Act, 2018, Finance Act, 2002 and Agriculture Infrastructure and Development Cess provisions, while the ethanol component must have borne the appropriate GST. The ethanol-blended petrol must also conform to Bureau of Indian Standards specification IS 19850. The notification demonstrates the Government’s continuing commitment to incentivising higher ethanol blending in fuels through fiscal measures, thereby supporting cleaner energy initiatives, reducing dependence on fossil fuels and advancing national ethanol blending objectives.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 27/2026-Central Excise | Dated: 10th June, 2026
G.S.R. 463(E).— In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of the 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. 28/2002-Central Excise, dated the 13th May, 2002, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 361(E), dated the 13th May, 2002, namely:-
In the said notification, in the TABLE, after S. No. 4D and the entries relating thereto, the following S. Nos. and entries shall be inserted, namely:-
| (1) | (2) | (3) |
| “4E. | 22% ethanol blended petrol that is a blend, –
(a) 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 (b) conforming to the Bureau of Indian Standards specification IS 19850. Explanation.- (i) appropriate duties of excise shall mean the duties of excise as leviable under the Fourth Schedule to the Central Excise Act, 1944 (1 of 1944), the additional duty of excise leviable under section 112 of the Finance Act, 2018 (13 of 2018), the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002) and the additional duty of excise (Agriculture Infrastructure and Development Cess) leviable under section 125 of the Finance Act, 2021 (13 of 2021), read with any relevant exemption notification for the time being in force; (i) appropriate Central tax, State tax, Union territory tax and Integrated tax” shall mean the Central tax, State tax, Union territory tax and Integrated tax as leviable under the Central Goods and Services Tax Act, 2017 (12 of 2017), the State Goods and Services Tax Act of the State concerned, the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and the Integrated Goods and Services Tax Act, 2017 (13 of 2017). |
Nil |
| 4F. | 25% ethanol blended petrol that is a blend, –
(a) 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 (b) conforming to the Bureau of Indian Standards specification IS 19850. Explanation.- (i) appropriate duties of excise shall mean the duties of excise as leviable under the Fourth Schedule to the Central Excise Act, 1944 (1 of 1944), the additional duty of excise leviable under section 112 of the Finance Act, 2018 (13 of 2018), the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002) and the additional duty of excise (Agriculture Infrastructure and Development Cess) leviable under section 125 of the Finance Act, 2021 (13 of 2021), read with any relevant exemption notification for the time being in force; (ii) appropriate Central tax, State tax, Union territory tax and Integrated tax” shall mean the Central tax, State tax, Union territory tax and Integrated tax as leviable under the Central Goods and Services Tax Act, 2017 (12 of 2017), the State Goods and Services Tax Act of the State concerned, the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and the Integrated Goods and Services Tax Act, 2017 (13 of 2017). |
Nil |
| 4G. | 27% ethanol blended petrol that is a blend, –
(a) 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 (b) conforming to the Bureau of Indian Standards specification IS 19850. Explanation.- i) appropriate duties of excise shall mean the duties of excise as leviable under the Fourth Schedule to the Central Excise Act, 1944 (1 of 1944), the additional duty of excise leviable under section 112 of the Finance Act, 2018 (13 of 2018), the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002) and the additional duty of excise (Agriculture Infrastructure and Development Cess) leviable under section 125 of the Finance Act, 2021 (13 of 2021), read with any relevant exemption notification for the time being in force; ii) appropriate Central tax, State tax, Union territory tax and Integrated tax” shall mean the Central tax, State tax, Union territory tax and Integrated tax as leviable under the Central Goods and Services Tax Act, 2017 (12 of 2017), the State Goods and Services Tax Act of the State concerned, the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and the Integrated Goods and Services Tax Act, 2017 (13 of 2017). |
Nil |
| 4H. | 30% ethanol blended petrol that is a blend, –
(a) 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 (b) conforming to the Bureau of Indian Standards specification IS 19850. Explanation.- (i) appropriate duties of excise shall mean the duties of excise as leviable under the Fourth Schedule to the Central Excise Act, 1944 (1 of 1944), the additional duty of excise leviable under section 112 of the Finance Act, 2018 (13 of 2018), the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002) and the additional duty of excise (Agriculture Infrastructure and Development Cess) leviable under section 125 of the Finance Act, 2021 (13 of 2021), read with any relevant exemption notification for the time being in force; (ii) appropriate Central tax, State tax, Union territory tax and Integrated tax” shall mean the Central tax, State tax, Union territory tax and Integrated tax as leviable under the Central Goods and Services Tax Act, 2017 (12 of 2017), the State Goods and Services Tax Act of the State concerned, the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and the Integrated Goods and Services Tax Act, 2017 (13 of 2017). |
Nil”. |
[F. No. 190354/295/2021-TRU]
DHEERAJ SHARMA, Under Secy.
Note:- The principal notification No. 28/2002-Central Excise, dated the 13th May, 2002 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 361(E), dated the 13th May, 2002 and was last amended vide notification No. 13/2022-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. 534 (E), dated the 12th July, 2022.
