Effective September 22, 2025, the GST Council has significantly reduced tax rates across the Indian fisheries and aquaculture sector, a move that is expected to boost the nation’s “Blue Economy.”
The reforms, which were approved at the 56th GST Council meeting, aim to directly benefit millions of fish farmers and other stakeholders by lowering operational costs and improving competitiveness in both domestic and export markets.
Key Highlights of the GST Reforms
- Prepared Seafood: The GST on fish oils, fish extracts, and prepared or preserved fish and shrimp products has been reduced from 12% to 5%. This makes these value-added items more affordable for Indian consumers and strengthens the global position of India’s seafood exports, which crossed ₹60,000 crores in 2023-24.
- Aquaculture & Farming Inputs: The GST on essential equipment for fish farming and hatcheries, such as diesel engines, pumps, aerators, and sprinklers, has been lowered from a range of 12% to 18% down to just 5%. Similarly, critical chemicals like ammonia and micronutrients used for pond management will now be taxed at 5%, a significant reduction from the previous 12% to 18%.
- Fishing Gear & Services: The tax on fishing rods, nets, and other gear has been cut from 12% to 5%, making it more accessible for both recreational and small-scale fishers. Additionally, the GST on job work services in food and agro-processing, including seafood, has been reduced from 12% to 5%, providing relief to processing units.
- Sustainable Practices: To encourage eco-friendly farming, the GST on composting machines, which are vital for producing organic manure, has also been lowered to 5%.
These tax reforms are a major step toward making the fisheries sector more productive and sustainable, supporting the livelihoods of over 3 crore people and contributing to the vision of a “Viksit Bharat.”