Tamil Nadu Cuts ATF VAT for Scheduled Airlines

Tamil Nadu has reduced VAT on aviation turbine fuel (ATF) for scheduled airlines fueling at airports in the state. The revised rates vary by airport and, for some operators, aircraft weight.

Key details

• At Chennai airport, the rate fell from 29% to 16% for November 1, 2026, through October 31, 2027.
• At other Tamil Nadu airports, the rate fell from 29% to 1% for scheduled airlines.
• A separate rate for scheduled airlines operating aircraft with a maximum take-off mass below 40,000 kg and fueling outside Chennai fell from 5% to 1%.
• A Tamil Nadu Government Gazette notification reportedly set out the revised rates.

Scheduled airlines fueling at Chennai airport face a 16% ATF VAT rate, down from 29%.

Why it matters

The lower VAT rates change the tax applied to ATF purchases by scheduled airlines fueling in Tamil Nadu. The Chennai rate differs from the rates at other airports, while the separate provision covers qualifying aircraft below the stated weight threshold.

What happens next

The Chennai rate applies through October 31, 2027. No further timeline was announced for the other revised rates.