GST Council Cuts Rates for Fisheries, Benefits 3 Crore Stakeholders

In line with Prime Minister Shri Narendra Modi’s vision of making GST a “Good and Simple Tax,” the fisheries sector has received a major push under the latest reforms.

The GST Council, in its 56th meeting on September 3, 2025, approved significant tax rationalisations to reduce operational costs, promote competitiveness, and directly benefit millions dependent on fisheries and aquaculture.

Major Tax Cuts on Seafood Products

GST on fish oils, fish extracts, and processed or preserved fish and shrimp products has been slashed from 12% to 5%. This will make value-added seafood more affordable domestically while strengthening the global competitiveness of India’s seafood exports.

Relief on Aquaculture Equipment and Inputs

The revised rates also bring relief to aquaculture farmers. Diesel engines, pumps, aerators, and sprinklers essential for hatcheries and farms will now attract just 5% GST instead of the earlier 12–18%. Similarly, critical chemicals such as ammonia and micronutrients for pond preparation and water quality management will also be taxed at 5%, cutting farm-level input costs.

Support for Small Fishers and Processing Units

Fishing gear including rods, tackle, landing nets, and butterfly nets will now draw 5% GST, helping both recreational and small-scale fishers. In addition, GST on job work services in food and agro-processing, including seafood, has been cut from 12% to 5%, giving relief to processing units. Composting machines used for producing organic manure will also be taxed at just 5%, encouraging sustainable aquaculture.

Strengthening India’s Global Position

India’s fisheries and aquaculture sector is one of the fastest-growing in the world, supporting the livelihoods of over 3 crore people. With production touching nearly 195 lakh tonnes in 2024–25, India is the second-largest fish producer globally. The country is also among the largest shrimp exporters, with seafood exports exceeding ₹60,000 crore in 2023–24.

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Conclusion

The GST reforms are expected to ease the financial burden of fish farmers, aquaculturists, small-scale fishers, women’s groups, and cooperatives. By reducing operational costs and promoting competitiveness, these changes mark a decisive step towards a sustainable and productive fisheries sector.

Effective from September 22, 2025, the reforms will further India’s journey towards a robust Blue Economy and contribute significantly to the vision of Viksit Bharat.

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