Maharashtra Lowers ATF VAT Rate from 18% to 7% for Half-Year Period

The Maharashtra government has announced a temporary relief measure by reducing the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 18 per cent to 7 per cent for a six-month period beginning May 15, according to an official statement.

The move is aimed at providing short-term tax relief on aviation fuel, which forms a significant component of airline operating costs and can have a direct impact on air travel pricing and sectoral efficiency.

The decision was formally notified by the state Finance Department on May 14 under the provisions of the Maharashtra Value Added Tax Act, 2002. As per the notification, the revised tax structure will remain in effect from May 15 to November 14. Once this period concludes, the VAT rate is scheduled to automatically revert to the earlier level of 18 per cent, unless the state government issues a further order to extend, modify, or withdraw the concession.
 

The notification further clarifies that the amendment has been incorporated under Entry 6 of Schedule B of the Maharashtra Value Added Tax Act, 2002, whereby the existing VAT rate of 18 per cent has been substituted with the reduced rate of 7 per cent for the specified duration. This temporary adjustment forms part of the state’s fiscal policy intervention aimed at providing sector-specific support for the aviation industry during the defined period.