Union Budget 2026-27 - Finance Bill, 2026

The value of Biogas/Compressed Biogas (CBG) and the appropriate Central Tax, State Tax, Union Territory Tax or Integrated Tax, as the case may be, paid on Biogas or CBG contained in blended CNG, is being excluded from the transaction value for the purpose of computation of central excise duty on such blended CNG. To this effect, notification No. 11/2017-Central Excise dated 30.06.2017 is being suitably amended vide notification No. 02/2026-Central Excise dated 01.02.2026. This change will come into effect from 02.02.2026. Notification No. 05/2023-Central Excise, dated 01.02.2023, vide which Central Excise duty was exempted only on the GST amount paid on biogas/CBG contained in such blended CNG is being rescinded with effect from 02.02.2026.

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Full Text:

Union Budget 2026-27 - Finance Bill, 2026

Biogas/CBG in blended CNG: value and related taxes excluded from transaction value for central excise from 02.02.2026. The value of Biogas/Compressed Biogas (CBG) contained in blended CNG, and the central, state, union territory or integrated taxes paid on that Biogas/CBG, are excluded from the transaction value for computing central excise duty on blended CNG; the exclusion is effected by amending the existing notification framework and takes effect from 02.02.2026, with the prior GST-only relief rescinded.