New Delhi, June 11: The government has exempted higher ethanol-blended petrol grades from central excise duty to prevent double taxation on fuel blending activities, according to official notifications.
The Central Board of Indirect Taxes and Customs (CBIC) issued notifications exempting ethanol blended petrol (EBP) grades E22, E25, E27 and E30 – containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol, respectively – from applicable central excise duties, subject to excise duty having already been paid on petrol and GST having been paid on the ethanol used for blending.
“Ethanol blending with petrol is a manufacturing activity which can be subjected to excise duty. Petrol bears excise duty, and ethanol bears GST at their respective stages. When the two are blended, the resulting product may attract excise duty once again on the full quantity,” a statement said.
For ethanol blends of up to 20 per cent, excise duty on the blended petrol was exempted by the Ministry of Finance. (PTI)
