Seafood sector to benefit GST reduction on inputs, equipment in aqua farms

The decision of the GST Council to reduce the rate applicable to inputs and equipment used in aquaculture farms will help the seafood sector as a whole.

Seafood Exporters Association of India (SEAI) said that the sector has come under stress on account of the decision of the US administration to impose 50 per cent tariff on goods imported from India. The shrimp grown through aquaculture is a leading component of India’s export basket to the US.

Direct benefit

The specific proposals relating to reduction of duty on farm inputs, fish feeds, fish oils, and processed fish will provide a direct benefit to the sector both by bringing down cost of production as well as by lowering the market price, promoting higher consumption, K.N.Raghavan, Secretary General of SEAI said.

The decision to bring down the tax on services for job work for seafood processing will directly help to bring down the cost of production and bring great benefit to the entire seafood sector. The focus on environment protection and promotion of sustainable practises through duty benefits for economic-friendly ponds is also a welcome step, he added.

Published on September 4, 2025