Blue economy set to gain as GST on fisheries essentials slashed to 5%

The recently enacted next-generation Goods and Services Tax reforms are all set to power the blue economy with rate cuts across key sectors of the fisheries landscape.

Under the revised structure, the 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 – which are essential for aquaculture operations and hatcheries — will also attract only five percent GST instead of the earlier 12 to 18 per cent, reducing operational costs for fish farmers.

The Fisheries Department said critical chemicals such as ammonia and micronutrients used in pond preparation and water quality management will also be taxed at five percent, down from the earlier 12 to 18 per cent, cutting costs of feed, pond conditioning and farm-level practices.

“The GST rate on fishing rods, tackle, landing nets, butterfly nets and gear has also been reduced from 12 per cent to 5 per cent, benefiting both recreational/sport fishing, small-scale aquaculture as well as capture fisheries farmers. This will make essential gear more affordable, lowering input costs and supporting livelihoods in the sector,” top officials in the Ministry for Fisheries said.

They said 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 five per cent.

“Composting machines, vital for producing organic manure and ensuring eco-friendly pond management, will now be taxed at five percent, encouraging sustainable aquaculture practices. These reforms are expected to directly benefit fish farmers, aquaculturists, small-scale fishers, women’s self-help groups and cooperatives,” said a senior government official.

The revised GST rates will come into effect from September 22. States and UTs have been urged to disseminate these changes widely so that farmers, processors and exporters can take full advantage of the reforms across the fisheries value chain, officials added.

India’s fisheries and aquaculture sector has emerged as one of the fastest-growing in the world. The sector today supports livelihood of over three crore people and has positioned India as the second-largest fish producer globally with a production of nearly 195 lakh tonnes in 2024-25. India is also the largest shrimp exporter in the world, with seafood exports crossing Rs 60,000 crore in 2023-24.