The Ministry of Finance, specifically the Department of Revenue, has issued Notification No. 27/2024-Central Excise, dated October 28, 2024. This notification has amended the excise duty rates on blended aviation turbine fuel ( ATF ) for flights operating under the UDAN ( Ude Desh ka Aam Nagrik ) Regional Connectivity Scheme ( RCS ).
These amended rates, effective from October 29, 2024, are expected to lower operational costs for select flights under the scheme, thereby increasing the affordability of air travel for the general public.
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The excise duty rates under the new notification are in the table below:
| Sl. No. | HS Code | Description of Goods | Excise Duty Rate |
| 7C | 2710 19 33 | Blended Aviation Turbine Fuel drawn by the selected airline operators or cargo operators for the regional connectivity scheme flights from Regional Connectivity Scheme (RCS) – Ude Deshka Aam Nagrik (UDAN) airport or heliport or waterdrome | 2% |
| 7D | 2710 19 33 | Blended Aviation Turbine Fuel | 11% |
The revised rates impose a 2% excise duty on blended ATF utilized by selected airline or cargo operators serving regional routes from designated RCS airports, heliports, or waterdromes. For other operators, a standard 11% excise duty will apply.
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These amendments form part of the government’s ongoing commitment to promoting UDAN, which aims to connect smaller cities with major metropolitan areas, improving regional connectivity and economic integration.
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