Ministry of Finance Amends Central Excise Duty Rates Effective October 1

The Central Government has revised the excise duty rates for specific categories of goods, mandating new per-litre levies that will become operational from October 1, 2026. These amendments, issued through the Department of Revenue, adjust the existing tax structure for commodities previously governed by principal notifications issued in March 2026.

Background

The Central Government exercised its powers under Section 5A of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002, to implement these changes. The Ministry of Finance issued two distinct notifications Notification No. 52/2026-Central Excise and Notification No. 53/2026-Central Excise on September 30, 2026. These instruments further amend Notification No. 06/2026-Central Excise and Notification No. 08/2026-Central Excise, which were both originally dated March 26, 2026. The government noted that the revisions were necessary in the "public interest," following a series of previous updates including those made via Notification No. 49/2026-Central Excise and Notification No. 50/2026-Central Excise on September 16, 2026.

Stakeholders Impacted

The revised duty structure primarily impacts manufacturers, refineries, and importers of exciseable goods specified under serial number 2 of Notification No. 06/2026-Central Excise and serial number 1 of Notification No. 08/2026-Central Excise. Furthermore, tax compliance teams, excise auditors, and Department of Revenue officials are directly affected, as they must ensure that all assessments and clearances from October 1, 2026, adhere to the new per-litre rates.

Key Provisions

The two notifications primarily substitute specific duty figures within the tables of the parent notifications to reflect new fiscal requirements.

Substituted Duty Rate for Notification 06/2026:

In Notification No. 06/2026-Central Excise, the entry in column (4) against serial number 2 has been substituted. The new rate is now fixed at Rs. 16 per litre. This change replaces the duty previously applicable to these specific goods under the Central Excise regime.

Updated Levy for Notification 08/2026:

Similarly, in Notification No. 08/2026-Central Excise, the entry in column (4) against serial number 1 has been replaced. The notification substitutes the existing entry with a revised duty of Rs. 10.5 per litre.

Practical/Compliance Impact

Entities currently dealing in these goods must immediately update their ERP and billing systems to incorporate the revised levies of Rs. 16 and Rs. 10.5 per litre. As the changes come into force at the start of the new month, all clearances occurring on or after October 1, 2026, must reflect the updated tax liability. While no new forms were introduced, failure to apply the substituted rates could result in penalties for short-payment under the Central Excise Act, 1944. Compliance officers should verify their product classification against the serial numbers mentioned to ensure the correct rate is applied.

Effective Date

According to the text of both notifications issued on September 30, 2026, the revised excise duty rates shall come into force with effect from October 1, 2026.