Diesel engines, pumps, aerators, and sprinklers, which were previously taxed at 12% to 18%, will now have a 5% GST.

India Slashes GST to Boost 'Blue Economy,' Fisheries and Aquaculture Sectors

INDIA
Monday, September 08, 2025, 16:00 (GMT + 9)

Government Reforms to Reduce Operational Costs, Enhance Competitiveness, and Benefit Millions of Fish Farmers and Small-Scale Fishers

NEW DELHI—In a significant move to strengthen the nation’s "Blue Economy," the Indian government has reduced the Goods and Services Tax (GST) on essential items for the fisheries and aquaculture sectors to 5%. The decision, announced at the 56th GST Council meeting on September 3, 2025, is set to take effect on September 22, 2025. This tax rationalization is expected to benefit over 3 crore people (30 million people) and enhance India's position as a global leader in seafood production and export.

GST Council Meeting Highlights: Net revenue implication of ₹48,000 crore ($5.76 billion USD) possible, says Revenue Secretary.(PTI)

Under the new structure, the GST on fish oils, fish extracts, and prepared or preserved fish and shrimp products has been cut from 12% to 5%. This makes seafood more affordable for domestic consumers and boosts the global competitiveness of India's seafood exports.

The tax cuts extend to the entire value chain, reducing operational costs for fish farmers and aquaculturists. Items like diesel engines, pumps, aerators, and sprinklers, which were previously taxed at 12% to 18%, will now have a 5% GST. Similarly, critical chemicals such as ammonia and micronutrients used for pond management will also see their GST rates drop to 5% from 12% to 18%.

The reforms also directly benefit small-scale fishers and recreational anglers. The GST on fishing rods, tackle, landing nets, butterfly nets, and gear has been reduced from 12% to 5%, making essential equipment more accessible and lowering input costs.

Relief has also been provided to processing units, with GST on job work services in food and agro-processing, including seafood, being cut from 12% to 5%. To encourage sustainable practices, the tax on composting machines has been reduced to 5%, promoting the use of organic manure.

The Indian fisheries and aquaculture sector has seen remarkable growth, emerging as one of the fastest-growing in the world. It is the second-largest fish producer globally, with a production of nearly 195 lakh tonnes (19,500,000 metric tonnes) in 2024-25. India is also the largest shrimp exporter in the world, with seafood exports valued at over ₹60,000 crore (US$7.38 billion) in 2023-24, a record high in volume. These reforms are seen as a strategic move to propel the sector's growth and achieve the government's vision of a robust Blue Economy.

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