The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
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Republic World · about 2 months ago
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
Frontline · 3 months ago
India’s GST, launched in 2017, was intended to unify indirect taxes and balance fiscal power between the Union and States. However, successive rate cuts, the expiration of the compensation guarantee in 2022, and the 2025 three‑tier reform have eroded state revenue, deepening fiscal dependence on the Union.
Key Takeaways
The VAT rate has been reduced from 25% to 7%.
It takes effect from 17 May 2026 and remains in force for six months.
Airlines operating from Delhi and their passengers benefit from the lower ATF VAT.
Primary source
Read the full article at Aviation JetaThis summary was published on VATfaqs.com on 17 May 2026. It relates to VAT developments in India. The original source is Aviation Jeta.
