The Central Board of Indirect Taxes and Customs (CBIC) on March 26, 2026, issued the notification regarding the Exemption from Basic Excise Duty and Cess on Petrol, Diesel, and Aviation Turbine Fuel for Exports and Supply to Foreign-Going Aircraft.
The following has been stated namely: -
• The exemption removes Basic Excise Duty and Agriculture Infrastructure and Development Cess on specified fuels when exported or supplied to foreign-going aircraft.
• Covered fuels include Motor Spirit (Petrol), High Speed Diesel, and Aviation Turbine Fuel (ATF).
• The notification clarifies key definitions for export, basic excise duty, and agriculture infrastructure and development cess.
• The exemption comes into force immediately, reducing tax burden on eligible export and international aviation fuel supplies.
[Notification No. 10/2026-Central Excise]
