Fisheries Sector Gets Major Relief as GST Rates Slashed on Key Inputs and Products

New Delhi: India’s fisheries and aquaculture sector has received a significant boost under the latest Goods and Services Tax (GST) reforms, with sweeping rate cuts aimed at reducing operational costs, strengthening exports, and improving the livelihoods of millions dependent on the industry.

According to the Ministry of Fisheries, Animal Husbandry and Dairying, GST on fish oils, fish extracts, and preserved seafood products such as shrimp has been brought down from 12 per cent to 5 per cent. Officials said the measure would make value-added seafood more affordable for domestic consumers and enhance India’s edge in global markets.

The reforms also target cost reduction at the farm level. Diesel engines, pumps, aerators, and sprinklers—equipment essential for aquaculture and hatchery operations—will now attract just 5 per cent GST, compared to the earlier 12 to 18 per cent. Similarly, critical chemicals like ammonia and micronutrients for pond preparation and water management will also be taxed at 5 per cent, cutting expenses on feed and conditioning practices.

Fishing gear, including rods, landing nets, butterfly nets, and tackle, has also been moved to the 5 per cent slab. The ministry said this will particularly benefit small-scale farmers and recreational fishers by making essential tools more affordable.

Processing units have been given relief too, with GST on job work services in food and agro-processing, including seafood, reduced from 12 per cent to 5 per cent. Composting machines, vital for eco-friendly pond management, will also attract the lower rate, promoting sustainable aquaculture practices.

India’s fisheries sector supports more than three crore people and has emerged as one of the fastest-growing in the world. With nearly 195 lakh tonnes of production in 2024-25, the country is the second-largest fish producer globally. India also holds the distinction of being the world’s largest shrimp exporter, with seafood exports surpassing ₹60,000 crore in 2023-24, significantly contributing to the nation’s Blue Economy.