New Delhi, June 11: The Centre has expanded excise duty exemptions for ethanol-blended petrol by bringing additional fuel blends containing 22 per cent to 30 per cent ethanol under the zero-duty regime.
According to notifications issued by the Ministry of Finance’s Department of Revenue and published in the Gazette of India, petrol mixed with 22%, 25%, 27% and 30% ethanol will attract no central excise duty, provided the blends meet the prescribed Bureau of Indian Standards (BIS) specifications.
The notifications specify that eligible fuel blends must contain the stipulated proportion of petrol and ethanol, with all applicable taxes and duties already paid on both components. Compliance with BIS standard IS 19850 has been made mandatory for availing the exemption.
Officials said the measure is aimed at supporting the government’s ethanol-blending programme and encouraging the use of cleaner fuel alternatives.
The notifications further clarify that the exemption covers fuels on which applicable excise duties, additional excise duties and the Agriculture Infrastructure and Development Cess have already been paid in accordance with existing laws.
The revised duty structure takes effect through the latest notifications issued by the Centre under the Central Excise framework.
