New Delhi: The GST on Fisheries Sector has been rationalized to 5% across fishing nets, seafood products, aquaculture inputs, and processing services, following the 56th GST Council meeting held on 3rd September 2025.
This landmark decision, in line with Prime Minister Narendra Modi’s vision of a “Good and Simple Tax,” is expected to reduce operational costs, strengthen India’s seafood exports, and directly benefit millions dependent on fishing and aquaculture for their livelihood.
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GST on Fisheries Sector: Tax Rationalization to Lower Costs
Under the new tax structure, GST on fish oils, extracts, and prepared or preserved seafood products has been reduced from 12% to 5%. This will make value-added seafood more affordable domestically and improve India’s global seafood export competitiveness.
Critical aquaculture equipment such as diesel engines, pumps, aerators, and sprinklers will now attract 5% GST instead of the earlier 12–18%, significantly reducing input costs for fish farmers. Essential chemicals including ammonia and micronutrients used in pond management and water quality improvement have also been reduced to 5%, lowering costs for feed, pond preparation, and farm-level practices.
GST on Fisheries Sector: Boost to Processing and Gear Affordability
To further support stakeholders, GST on preserved fish, shrimp, and molluscs has been reduced to 5%, strengthening seafood exports while encouraging domestic consumption. Fishing rods, tackle, landing nets, butterfly nets, and gear will now attract 5% GST instead of 12%, making essential equipment more affordable for small-scale fishers and aquaculture farmers.
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In addition, job work services in food and agro-processing, including seafood, will now be taxed at 5% instead of 12%. Composting machines, vital for sustainable aquaculture practices, will also be taxed at 5%, encouraging eco-friendly pond management.
GST on Fisheries Sector: Supporting Blue Economy and Rural Livelihoods
India’s fisheries and aquaculture sector, among the fastest growing in the world, supports over 3 crore livelihoods and contributes significantly to food security, farmer incomes, and exports. India is the world’s second-largest fish producer, with nearly 195 lakh tonnes of production in 2024–25, and the largest shrimp exporter, with seafood exports exceeding ₹60,000 crore in 2023–24.
The revised GST rates will take effect from 22nd September 2025. These reforms are expected to provide direct relief to fish farmers, aquaculturists, women’s self-help groups, and cooperatives, thereby strengthening the GST on Fisheries Sector as a driver of India’s Blue Economy and the vision of Viksit Bharat.
