In line with the government’s vision of making GST a truly “Good and Simple Tax” that empowers every sector of the economy, the fisheries sector has received a major boost under the latest GST reforms.
The significant tax rate rationalisation in the fisheries sector will help in the reduction of operational costs, enhance competitiveness in domestic and export markets, and directly benefit millions of fish farmers and other stakeholders dependent on fishing and aquaculture for their livelihoods in the country.
Under the revised structure, GST on fish oils, fish extracts, and prepared or preserved fish and shrimp products has been reduced from 12 per cent to 5 per cent, making value-added seafood more affordable for domestic consumers and enhancing the competitiveness of India’s seafood exports. Diesel engines, pumps, aerators, and sprinklers, essential for aquaculture operations and hatcheries, will now attract only 5 per cent GST instead of the earlier 12 to 18 per cent, significantly reducing operational costs for fish farmers.
Critical chemicals such as ammonia and micronutrients used in pond preparation and water quality management will also be taxed at 5 per cent, down from the earlier 12 to 18 per cent, cutting costs of feed, pond conditioning, and farm-level practices. Reduced GST on preserved fish, shrimp, and molluscs will strengthen India’s seafood exports globally while promoting greater domestic consumption of safe and hygienically processed seafood.
The GST rate on fishing rods, tackle, landing nets, butterfly nets, and gear has been reduced from 12 per cent to 5 per cent, benefiting both recreational/sport fishing as well as small-scale aquaculture and capture fisheries farmers.
This will make essential gear more affordable, lowering input costs and supporting livelihoods in the sector. The decision further provides relief to processing units, with GST on job work services in food and agro-processing, including seafood, cut from 12 per cent to 5 per cent. Composting machines, vital for producing organic manure and ensuring eco-friendly pond management, will now be taxed at 5 per cent, encouraging sustainable aquaculture practices.
These reforms are expected to directly benefit fish farmers, aquaculturists, small-scale fishers, women’s self-help groups, and cooperatives, easing their financial burden and improving rural livelihoods. The revised GST rates will come into effect from 22nd September 2025. These decisions mark a significant step towards making India’s fisheries sector more productive, competitive, and sustainable, and are fully aligned with the Government’s vision of a robust Blue Economy contributing to Viksit Bharat.