As part of the sweeping GST reform announced in early September 2025, the government has reduced the Goods and Services Tax (GST) on seafood products—including fish oils, preserved fish, shrimp, and aquaculture inputs—from 12% to 5%, effective September 22, 2025. This significant cut aims to boost affordability, increase competitiveness in export markets, and support India’s fisheries sector.The Economic Times
What Has Changed?
- GST on fish oils, fish extracts, prepared or preserved fish and shrimp products has been slashed from 12% to 5%, making value-added seafood more affordable for domestic consumers and export-ready in global markets.
- Similarly, aquaculture-related inputs—such as diesel engines, pumps, aerators, sprinklers, essential chemicals like ammonia and micronutrients—have also seen a reduction to 5%, down from the earlier 12–18%, thereby lowering operational costs for fish farmers.
- The revised rates are part of a broader push to simplify GST to two main slabs—5% and 18%—with a special 40% rate reserved only for “sin goods.”
Why It Matters
1. Consumer & Export Value
The reduction lowers retail prices for seafood products, helping domestic affordability and making Indian seafood more price-competitive globally.
2. Relief for Aquaculture Sector
Aquaculture businesses, fish farmers, and processors benefit from lower input costs—ranging from equipment to feed enhancement—encouraging growth across the sector.
3. Boost to Blue Economy
With India already positioned as the second-largest fish producer globally, these reforms reinforce the “Blue Economy” and hold promise for rural livelihoods, exports, and economic resilience.
Quick Summary Table
| Category | Old GST Rate | New GST Rate | Impact |
|---|---|---|---|
| Fish oils, extracts, preserved seafood | 12% | 5% | Lower retail prices, higher consumer affordability |
| Aquaculture inputs & gear | 12–18% | 5% | Reduced operational costs; improved sector viability |
| Overall GST Reform Context | Multiple slabs | Two main slabs (5% & 18%) + 40% for sin goods | Simplified tax system; economic boost across sectors |
