In a significant relief to the aviation sector, the Government of Maharashtra, through its Finance Department, has extended the applicability of the reduced Value Added Tax (VAT) rate of 7% on Aviation Turbine Fuel (ATF) (Duty Paid) till April 14, 2027, providing continuity to the concessional taxation regime applicable to aviation fuel in the State.
In this regard, the State Government has issued Notification No. MVAT.2026/C.R.28/Taxation-1 dated November 12, 2026, in exercise of the powers conferred under Section 9(1) of the Maharashtra Value Added Tax Act, 2002, read with Section 21 of the Maharashtra General Clauses Act, 1904.
Extension of Reduced VAT Rate from November 14, 2026 to April 14, 2027
Earlier, vide Notification No. MVAT.2026/C.R.28/Taxation-1 dated May 14, 2026, the Maharashtra Government had amended Schedule ‘B’ of the Maharashtra Value Added Tax Act, 2002, reducing the VAT rate on duty-paid Aviation Turbine Fuel to 7% for the period from May 15, 2026 to November 14, 2026.
Considering the need to continue the concessional tax treatment, the Government has now extended the validity of the reduced VAT rate for an additional five months, i.e., up to April 14, 2027.
Accordingly, the latest notification substitutes the date “14th November 2026” with “14th April 2027” in the earlier notification dated May 14, 2026, thereby ensuring continuity of the 7% VAT rate on duty-paid ATF.
Key Implications for the Aviation Sector
The extension of the concessional VAT rate is expected to provide continued tax relief to airlines and aviation operators purchasing duty-paid ATF in Maharashtra.
The measure may help contain aviation fuel costs, provide greater certainty in operational planning and support the aviation sector by maintaining the existing concessional tax treatment.
The notification does not introduce any further reduction in the VAT rate but extends the existing reduced rate of 7% until April 14, 2027.
Effective Period and Statutory Provisions
The reduced VAT rate of 7% on Aviation Turbine Fuel (Duty Paid) will continue to remain applicable for the extended period ending April 14, 2027, instead of the earlier expiry date of November 14, 2026.
The amendment has been issued under Section 9(1) of the Maharashtra Value Added Tax Act, 2002, read with Section 21 of the Maharashtra General Clauses Act, 1904.
The extension provides continuity in the State’s concessional VAT treatment of aviation fuel and avoids the scheduled expiry of the reduced rate on November 14, 2026.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/11/1794554165_ATF-कराधान-1-12.11.2026.pdf
