India’s fisheries and aquaculture sector has received a major boost under the latest GST reforms, with the GST Council approving sweeping tax rationalization in its 56th meeting held on September 3. The move is expected to reduce input costs, enhance competitiveness in global markets, and directly benefit over 3 crore people dependent on fishing and aquaculture.
Under the revised structure, GST on fish oils, extracts, and preserved or processed fish and shrimp products has been slashed from 12% to 5%, making value-added seafood more affordable domestically while strengthening India’s export competitiveness.
Key aquaculture equipment — including diesel engines, pumps, aerators, and sprinklers — will now attract only 5% GST instead of the earlier 12–18%. Similarly, chemicals such as ammonia and micronutrients essential for pond preparation and water quality management will also be taxed at 5%, easing the cost burden for farmers.
In a further relief, fishing gear such as rods, landing nets, and tackle will see GST reduced from 12% to 5%, benefitting both small-scale fishers and recreational fishing communities. Composting machines, vital for eco-friendly pond management, will also now be taxed at 5%.
Processing units will benefit as well, with GST on job work services in food and agro-processing, including seafood, cut from 12% to 5%, lowering costs for seafood exporters and processors.
India, the world’s second-largest fish producer, recorded nearly 195 lakh tonnes of production in 2024–25. The country is also among the world’s largest shrimp exporters, with seafood exports crossing ₹60,000 crore in 2023–24. The sector is a cornerstone of India’s Blue Economy, contributing significantly to farmer incomes, rural livelihoods, and foreign exchange earnings.
The revised GST rates will come into effect from September 22, 2025. The government said the decision reflects Prime Minister Narendra Modi’s vision of making GST a “Good and Simple Tax” while strengthening the goal of Viksit Bharat.