Govt says GST rate cut to make fisheries sector more competitive

New Delhi, Sep 4 (PTI) GST rate cut would make the fisheries sector more competitive in both the domestic and export markets, the government said on Thursday.

"The significant tax rate rationalisation in the fisheries sector will help in the reduction of operational costs, enhance competitiveness in domestic and export markets, and directly benefit millions of fish farmers and other stakeholders dependent on fishing and aquaculture for their livelihoods in the country," the Ministry of Fisheries, Animal Husbandry & Dairying said in a statement.

India is the second-largest fish producer globally with a production of nearly 195 lakh tonnes (2024-25). Seafood exports crossed Rs 60,000 crore in 2023-24. The sector today supports the livelihood of over 3 crore people.

Under the revised structure, the GST rates on fish oils, fish extracts, and prepared or preserved fish and shrimp products have been reduced from 12 per cent to 5 per cent.

Diesel engines, pumps, aerators, and sprinklers, essential for aquaculture operations and hatcheries, will now attract only 5 per cent GST instead of the earlier 12 per cent to 18 per cent, significantly reducing operational costs for fish farmers.

Critical chemicals such as ammonia and micronutrients used in pond preparation and water quality management will also be taxed at 5 per cent, down from the earlier 12 per cent to 18 per cent, cutting costs of feed, pond conditioning, and farm-level practices.

"Reduced GST on preserved fish, shrimp, and molluscs will strengthen India's seafood exports globally while promoting greater domestic consumption of safe and hygienically processed seafood," the ministry said.

The GST rate on fishing rods, tackle, landing nets, butterfly nets, and gear has been reduced to 5 per cent from 12 per cent.

The decision provides relief to processing units, with GST on job work services in food and agro-processing, including seafood, cut from 12 per cent to 5 per cent. Composting machines will now be taxed at 5 per cent. PTI MJH MJH SHW