GST Rate Cuts Announced! Big Boost for Fisheries, Exports & Rural Jobs

Aligned with Prime Minister Shri Narendra Modi’s vision of transforming GST into a truly “Good and Simple Tax” that benefits all sectors of the economy, the Fisheries Sector has been significantly strengthened through the latest GST reforms approved by the during its 56th meeting on 3rd September 2025.

Under the revised structure:

• Fish oils, fish extracts, and prepared or preserved fish and shrimp products have been reduced to 5%; earlier it was 12%. This has helped seafood to become more reasonable for domestic consumers and increased the competitiveness of India’s seafood exports.
• Fishing rods, tackle, landing nets, butterfly nets and gear have been reduced from 12% to 5%. This benefits both recreational/sport fishing and small-scale aquaculture and capture fisheries farmers. This will also make necessary fear more cheaper and help in lowering input costs and supporting livelihoods in the sector.
• Diesel engines, pumps, aerators and sprinklers have been reduced to 5% instead of the previous 12 to 18%. This is essential for aquaculture operations and hatcheries and significantly helps in reducing the operational costs for fish farmers.
• Job work services in food and agro–processing, such as seafood, reduced from 12% to 5%. Composting machines are crucial for producing organic manure and ensuring eco-friendly pond management will now be taxed at 5%, encouraging sustainable aquaculture practices.
• Chemicals, including ammonia and micronutrients, used in pond preparation and water quality management will also be taxed at 5% instead of the previous 12 to 18%. This will help in slashing the costs of feed, pond conditioning and farm-level practices.

India is one of the largest shrimp exporters in the world, contributing significantly to food and nutritional security, farmer incomes, rural livelihoods and exports, with seafood exports crossing Rs. 60,000 crores in 2023-24.

These decisions are an important step towards making India’s fisheries sector more productive, competitive, and sustainable and are associated with the Government’s vision of a robust Blue Economy contributing to Viksit Bharat.

GST reforms will benefit millions of fish farmers and other stakeholders for their livelihoods in the country. It will help in create India’s seafood exports globally while promoting greater domestic consumption of safe and hygienically processed seafood.

Note: The revised GST rates will come into force from September 22, 2025.