{"id":9572,"date":"2026-06-12T17:44:01","date_gmt":"2026-06-12T12:14:01","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=9572"},"modified":"2026-06-12T17:44:01","modified_gmt":"2026-06-12T12:14:01","slug":"government-grants-nil-aidc-on-22-to-30-ethanol-blended-petrol","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/government-grants-nil-aidc-on-22-to-30-ethanol-blended-petrol","title":{"rendered":"Government Grants Nil AIDC on 22% to 30% Ethanol Blended Petrol"},"content":{"rendered":"

Notification No. 29\/2026-Central Excise<\/a>, Dated 10-06-2026<\/strong><\/p>\n

The Central Government has amended Notification No. 3\/2021-Central Excise dated 01-02-2021<\/strong> to extend the benefit of Nil Agriculture Infrastructure and Development Cess (AIDC)<\/strong> to specified categories of ethanol-blended petrol<\/strong>.<\/p>\n

The amendment seeks to promote higher ethanol blending in fuel by extending the concessional AIDC treatment to additional blending levels.<\/p>\n

1. New Entries Inserted in AIDC Exemption Notification<\/h2>\n

The notification inserts new entries prescribing a Nil rate of AIDC<\/strong> for ethanol-blended petrol falling under Tariff Heading 2710 12<\/strong>.<\/p>\n

The exemption covers specified blends containing higher proportions of ethanol by volume.<\/p>\n

2. Ethanol Blends Eligible for Nil AIDC<\/h2>\n

The Nil AIDC rate has been extended to petrol containing:<\/p>\n

    \n
  • \n
      \n
    • 22% Ethanol<\/strong><\/li>\n
    • 25% Ethanol<\/strong><\/li>\n
    • 27% Ethanol<\/strong><\/li>\n
    • 30% Ethanol<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

      by volume.<\/p>\n

      These blending categories have now been specifically included within the exemption framework.<\/p>\n

      3. Conditions for Availing the Exemption<\/h2>\n

      The Nil AIDC benefit is available subject to fulfilment of the prescribed conditions.<\/p>\n

      4. Duty-Paid Motor Spirit Requirement<\/h3>\n

      The blend must contain:<\/p>\n

        \n
      • \n
          \n
        • Motor spirit (petrol) on which the appropriate duties of excise have been paid.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

          5. Tax-Paid Ethanol Requirement<\/h3>\n

          The ethanol used in the blend must be one on which applicable taxes have been paid, including:<\/p>\n

            \n
          • \n
              \n
            • CGST;<\/li>\n
            • SGST;<\/li>\n
            • Union Territory GST; or<\/li>\n
            • IGST,<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

              as the case may be.<\/p>\n

              6. BIS Compliance Mandatory<\/h3>\n

              To qualify for the exemption, the ethanol-blended petrol must conform to:<\/p>\n

              Bureau of Indian Standards (BIS) Specification IS 19850<\/strong><\/p>\n

              relating to ethanol-blended motor spirit.<\/p>\n

              7. Objective of the Amendment<\/h2>\n

              The amendment is intended to support the Government’s ethanol blending programme by providing tax incentives for higher ethanol-content fuel blends.<\/p>\n

              By extending the Nil AIDC benefit to petrol containing 22%, 25%, 27% and 30% ethanol, the Government seeks to:<\/p>\n

                \n
              • \n
                  \n
                • Encourage adoption of higher ethanol blends;<\/li>\n
                • Promote the use of renewable fuel sources;<\/li>\n
                • Reduce dependence on imported fossil fuels; and<\/li>\n
                • Support environmental sustainability objectives.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                  Impact of the Notification<\/h2>\n

                  The amendment provides a fiscal incentive for the production and supply of higher ethanol-blended petrol by eliminating AIDC on eligible blends.<\/p>\n

                  The measure is expected to facilitate the growth of ethanol blending initiatives and contribute to the Government’s broader energy security and biofuel development goals.<\/p>\n","protected":false},"excerpt":{"rendered":"

                  Notification No. 29\/2026-Central Excise, Dated 10-06-2026 The Central Government has amended Notification…<\/p>\n","protected":false},"author":19,"featured_media":9582,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,65],"tags":[],"class_list":["post-9572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-statutory-scope"],"yoast_head":"\nGovernment Grants Nil AIDC on 22% to 30% Ethanol Blended Petrol<\/title>\n<meta name=\"description\" content=\"The government has extended the Nil AIDC benefit to 22%, 25%, 27% and 30% ethanol blended petrol meeting the prescribed BIS standards.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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