The Goa government has set a 7% value-added tax (VAT) rate on aviation turbine fuel (ATF), with the revised rate taking effect from October 24, 2026.
The state had last set VAT on this category of ATF at 15% in March 2024, before cutting it to 7% in the latest notification.
IndiGo has welcomed the decision, urging other states to consider similar measures as aviation fuel costs remain high. The airline said rationalising VAT on ATF would strengthen air connectivity, support Goa’s tourism sector and help make air travel more accessible.
In a post on X, IndiGo thanked Chief Minister Pramod Sawant for the decision, describing it as a progressive step towards strengthening the aviation ecosystem. The airline also expressed hope that other states would follow suit.
The notification, issued by Goa’s Department of Finance (Revenue and Control) on October 23, amends Schedule C of the Goa Value Added Tax Act, 2005. It prescribes a 7% VAT rate for “Aviation Turbine Fuel other than covered by entry (1) above”, replacing the existing entry at serial number two.
The revised provision retains a distinction between this category of ATF and fuel covered under the preceding entry.
IndiGo said similar measures by other states could help improve the accessibility of air travel at a time when ATF costs remain elevated. The airline did not announce any corresponding change in airfares.