Goa has reduced the value-added tax on aviation turbine fuel (ATF) to 7%, with the revised rate taking effect from October 24, 2026, in a move aimed at supporting air connectivity and the state’s tourism economy.
The Goa Department of Finance (Revenue and Control) issued the notification on October 23, amending Schedule C of the Goa Value Added Tax Act, 2005. The revised provision replaces the existing 15% rate for the specified category of ATF.
The state had last set the VAT rate for this category of aviation fuel at 15% in March 2024. The new notification prescribes a 7% rate for “Aviation Turbine Fuel other than covered by entry (1) above”, while retaining the distinction between this category and fuel covered under the preceding entry.
The change is expected to reduce the tax component on aviation fuel supplied in Goa. ATF is a significant operating cost for airlines, and state-level VAT rates can influence the cost of operating flights from airports in different jurisdictions. The notification, however, does not announce any corresponding change in passenger airfares.
IndiGo welcomed the decision in a post on X and thanked Chief Minister Pramod Sawant. The airline described the move as a progressive step towards strengthening Goa’s aviation ecosystem and said that rationalising VAT on ATF would support air connectivity, make air travel more accessible and strengthen the state’s tourism sector.
IndiGo also urged other states to consider similar measures, saying that aviation fuel costs remain elevated. The airline said coordinated action by states could help improve the accessibility of air travel, but it did not announce any fare reduction or specific change to its flight schedule following Goa’s notification.
Goa’s airport connectivity is closely linked to the movement of domestic and international visitors, making aviation costs relevant to the state’s tourism-dependent economy. The VAT reduction therefore applies at the intersection of state tax policy, airline operating costs and access to air travel.
The revised rate will apply from October 24, one day after the notification was issued. The amended entry in the Goa Value Added Tax Act will govern the applicable VAT on the specified category of aviation turbine fuel from that date.
