FisheriesAquaculture

GST on Fisheries & Aquaculture — Fresh Fish Exempt, Frozen 5%, Canned 12%

Complete GST guide for fisheries & aquaculture: fresh fish exempt, frozen fish/shrimp 5%, processed/canned 12%, fish feed 5%, fishing boats 5%, aquaculture equipment 18%, fish seed exempt, seafood export zero-rating, cold chain treatment, and online fish delivery (Licious, FreshToHome) GST compliance.

Exempt

Fresh Fish (unprocessed)

5%

Frozen Fish / Shrimp

12%

Processed / Canned Fish

5%

Fish Feed

5%

Fishing Boats (< 20m)

18%

Aquaculture Equipment

Exempt

Fish Seed / Fry

5%

Dried / Smoked Fish

Fisheries & Aquaculture — GST Framework

Fresh Fish & Seafood — Exempt / 5%

COMPLETELY EXEMPT: Live fish: EXEMPT (HSN 0301). Fresh fish (not frozen, not processed): EXEMPT (HSN 0302). Fresh shrimp/prawn (not frozen): EXEMPT. Fresh crab/lobster (live): EXEMPT. Fish seeds, prawn seeds, shrimp larvae: EXEMPT. Curd/fingerlings/fry: EXEMPT. CONDITION FOR EXEMPTION: Must be 'fresh' — meaning: not frozen, not dried, not smoked, not processed. Can be chilled (on ice) — still exempt. Can be gutted/cleaned — still exempt (basic preparation). Can be filleted at point of sale — still exempt. BUT: if pre-packaged & labeled with brand: technically 5% (post-2022 rule). Practical reality: most fresh fish sold loose/unbranded = exempt. WHERE DOES 5% START: Frozen fish (blast frozen): 5% (HSN 0303). Frozen shrimp/prawn: 5% (HSN 0306). Frozen crab/lobster: 5%. Dried fish (sun dried): 5% (HSN 0305). Salted fish: 5%. Smoked fish: 5%. Fish fillets (frozen): 5% (HSN 0304). Fish fingers (frozen, uncooked): 5%. FISHERMAN SELLING: Individual fisherman selling catch: EXEMPT always (even if above ₹20L — agricultural produce by agriculturist). Fishing is classified as 'agriculture' for GST purposes. Farmer/fisherman: no registration needed regardless of turnover. Fish auction at harbor: EXEMPT (fresh fish, sold by fishermen through commission agents). Commission agent's service: taxable (18% if above threshold). But: commission agent dealing in agricultural produce (fish) under RCM — buyer pays GST on commission, not agent.

Processed & Canned Seafood — 12% / 18%

PROCESSED FISH — 12%: Canned fish (tuna, sardine, mackerel): 12% (HSN 1604). Pickled fish: 12%. Fish paste/fish sauce: 12%. Ready-to-eat fish curry (retort pouch): 12%. Fish cutlet/fish finger (cooked, frozen): 12%. Surimi (fish paste for imitation crab): 12%. Prawn pickle/prawn masala (ready): 12%. FISH OIL & BYPRODUCTS: Fish oil (crude): 5% (HSN 1504). Fish oil (refined/capsule grade): 18%. Fish meal: 5% (HSN 2301 — used as animal feed). Fish glue: 18%. Fish collagen: 18%. Fish leather: 12%. Shark liver oil: 18% (supplement). MAJOR PROCESSED SEAFOOD BRANDS: IFB Agro (Gadre brand — surimi): 12%. Innovative Foods (Sumeru brand): 12% on frozen products. Apex Frozen Foods (shrimp): 5% (frozen) or 12% (value-added). Waterbase (shrimp feed): 5%. Coastal Corporation: 12% on canned. EXPORT-ORIENTED UNITS (EOU): 70%+ of India's processed seafood is exported. Exports: zero rated (0% IGST). Domestic sale by EOU: normal GST applies. Many processing plants: 90% export + 10% domestic. ITC on inputs: fully refundable for export portion. RESTAURANT FISH: Fish served in restaurant: 5% (restaurant service rate). Fish served in restaurant within hotel (tariff > ₹7,500): 5% or 18% (hotel's choice). Fish takeaway from restaurant: 5%. Fish from cloud kitchen (Swiggy/Zomato): 5% (restaurant service). Fish from frozen food delivery (Licious, FreshToHome): 5% on fresh fish portions or 12% on marinated/ready-to-cook.

Aquaculture & Fish Farming — Equipment & Feed

FISH/SHRIMP FEED — 5%: Aquaculture feed (compound feed): 5% (HSN 2309). Shrimp feed (pellet): 5%. Fish feed (floating/sinking pellet): 5%. Artemia (brine shrimp — live feed): EXEMPT (live animal). Feed additives: 5%. Probiotics for aquaculture: 5% (if classified as feed supplement) or 18% (if chemical). KEY FEED COMPANIES: CP India (Charoen Pokphand): 5% on all aquaculture feed. Avanti Feeds (India's largest shrimp feed): 5%. Growel Feeds: 5%. Godrej Agrovet: 5% on aqua feed. Waterbase: 5%. IFB Agro: 5% on feed. AQUACULTURE EQUIPMENT — 18%: Aerators: 18% (HSN 8414 — air pump classification). Water pumps: 12% (agricultural pump) or 18% (industrial pump). Generators: 18%. Automatic feeders: 18%. Water testing kits: 18%. Pond liners (HDPE sheets): 18%. Nets (nylon/HDPE): 12% (HSN 5608). Biofloc equipment: 18%. RAS (Recirculating Aquaculture System): 18%. HATCHERY EQUIPMENT: Incubators (fish egg): 18%. Larval rearing tanks: 18%. Spawning equipment: 18%. Broodstock management: equipment at 18%. SEEDS & JUVENILES: Fish seed (spawn, fry, fingerlings): EXEMPT. Shrimp seed (PL — Post Larvae): EXEMPT (live animals). Broodstock (parent shrimp/fish): EXEMPT. This exemption is CRITICAL — seed cost is 15-25% of aquaculture production cost. If taxed at 5-18%: would significantly increase farming cost. MEDICINES & CHEMICALS: Antibiotics for fish: 12% (veterinary medicine). Lime (pond treatment): 5%. Potassium permanganate: 18%. Zeolite: 18%. Probiotics: 5-18% (classification dispute). CIFAX (fish disease treatment): 18%.

Fishing Boats & Marine Equipment — 5% / 18%

FISHING VESSELS: Fishing boats (mechanized, < 20m): 5% (HSN 8902). Fishing trawlers (> 20m): 5%. Traditional boats (country craft): 5%. Fiberglass fishing boats: 5%. Catamaran: EXEMPT (traditional — no engine). Coracle: EXEMPT (traditional). MARINE ENGINES: Outboard motors (for fishing boats): 5% (specific exemption for fishing use). Inboard marine diesel engine: 5% (if for fishing vessel — otherwise 18%). Engine spare parts: 18% (no concessional rate). FISHING NETS & GEAR: Nylon fishing nets: 5% (HSN 5608 — specific to fishing). Monofilament lines: 5%. Hooks: 5%. Trawl nets: 5%. Gill nets: 5%. Cast nets: 5%. Ropes (nylon/PE — for fishing): 12%. Floats: 18%. Sinkers: 18%. GPS/fish finder: 18%. Radar (marine): 18%. VHF radio (mandatory safety): 18%. DEEP SEA FISHING: Deep sea fishing vessels: 5% (same as coastal). Letter of Permit (LoP) vessels: 5% on vessel, 18% on equipment. Mothership + small boats: vessel 5%, onboard processing equipment 18%. COLD CHAIN (MARINE): Ice for fishing boats: EXEMPT (if made from water — ice is 'frozen water'). Actually: manufactured ice — 5% (HSN 2201). Insulated fish boxes: 18% (plastic/thermocol). Refrigeration unit for boat: 18%. Chilling plant at harbor: 18% (equipment). GOVERNMENT SUPPORT: Subsidized diesel for fishermen: outside GST (petroleum not under GST). Blue Revolution scheme: equipment subsidies (GST paid, then subsidy covers). Kisan Credit Card for fishermen: no GST implication. Insurance (fishing boat): 18% (insurance service).

Seafood Exports — Zero Rated & Incentives

EXPORT VOLUME: India: 2nd largest aquaculture producer globally. Seafood exports: ₹60,000-65,000 crore annually (2023-24). Top products: frozen shrimp (70%+ of export value), frozen fish, cuttlefish/squid. Destinations: USA (35%), EU (15%), Japan (10%), China (10%), Southeast Asia. ZERO RATING BENEFIT: All seafood exports: 0% IGST (zero rated). Exporter claims: full ITC refund on ALL inputs. Typical ITC refund per exporter: ₹50 lakh - ₹50 crore annually. Inputs where ITC accumulated: processing machinery (18%), packaging (18%), cold storage (18%), transport (18%), fuel (outside GST but diesel credit available via MEIS/RoDTEP). EXPORT PROCESS: (1) Purchase raw material (fresh shrimp from farmer): EXEMPT (no GST paid). (2) Processing (peeling, deveining, grading, freezing): internal activity. (3) Packaging: 18% GST on packaging material → ITC claimable. (4) Blast freezing / cold storage: 18% on service → ITC claimable. (5) Transport to port: 18% GTA → ITC claimable. (6) Export under LUT: no IGST on export invoice. (7) File refund (RFD-01): claim accumulated ITC. PROBLEM — INVERTED DUTY: Input (raw fish/shrimp from farmer): EXEMPT (0%). Output (processed frozen shrimp export): ZERO rated (0%). ITC on packaging, processing, transport: 18%. Since output is zero: ALL input ITC is refundable. This is THE MOST FAVORABLE tax position possible. Seafood exporters effectively operate GST-free + get refunds. RODTEP (Remission of Duties): Frozen shrimp: 1.6% RoDTEP. Frozen fish: 1.4%. Dried fish: 1.8%. Canned fish: 2.1%. RoDTEP is separate from GST refund — additional export incentive. MPEDA (Marine Products Export Development Authority): Facilitates exports. Pre-shipment inspection: service at 18% but subsidized by government. Certificate of Origin: nominal charges.

Inland Fisheries & Cold Chain — Tax Treatment

INLAND FISHERIES (FRESHWATER): India: largest inland fish producer globally. Major species: Rohu, Catla, Mrigal (Indian Major Carps). States: Andhra Pradesh (40%+), West Bengal, Bihar, Odisha. Fresh inland fish (sold at local market): EXEMPT. Frozen inland fish (for distant markets): 5%. COLD CHAIN GST: Cold storage for fish (agricultural produce): EXEMPT from GST (Notification 12/2017). Condition: must store agricultural produce (fish qualifies). So: fish cold storage service: EXEMPT. This is DIFFERENT from general cold storage (18%). CRITICAL DISTINCTION: Storing RAW FISH (agricultural): exempt cold storage. Storing PROCESSED fish products (frozen fish fingers, canned): 18% storage. Multiproduct cold stores: apportionment required. TRANSPORT: Fresh fish transport by road (GTA): 5% (or exempt if by non-air-conditioned goods vehicle). Refrigerated transport: 18% (specialized service). Train (refrigerated wagon): 5% (rail transport). Air cargo (for premium fish/lobster): 18%. FISH MARKETS & MANDIS: Wholesale fish market: commission agent services. Agricultural Produce Market Committee (APMC): fish markets regulated. Commission: 18% GST (on agent's service). Auction fee: 18%. Market fee/cess: outside GST (state levy). e-NAM for fish: electronic auction platform — same tax treatment. ORNAMENTAL FISH: Aquarium fish (ornamental): 5% (live animal, non-agricultural). Aquarium plants: 5%. Fish tank: 18%. Aquarium accessories (filter, pump, heater): 18%. Fish food (ornamental): 5% or 18% (classification varies). Gold fish, guppy, betta: 5%. Imported ornamental fish (from Thailand, Singapore): 5% IGST + customs duty. PEARL CULTURE: Cultured pearls: 3% (precious stones classification). Pearl oyster: EXEMPT (live animal). Pearl farming equipment: 18%. Natural pearls: 0.25% (unprocessed) or 3% (processed).

Fisheries & Aquaculture — GST Rate Table

ItemHSN / SACGST RateNotes
Fresh fish (unprocessed, live)0301/0302ExemptSold by fisherman at market
Frozen fish / fish fillets0303/03045%Blast frozen, IQF
Frozen shrimp / prawns03065%India's top seafood export
Dried / salted / smoked fish03055%Sun dried, smoked varieties
Canned fish (tuna, sardine)160412%Ready-to-eat, processed
Fish feed / aqua feed23095%CP, Avanti, Growel
Fish seed / fry / fingerlings0301ExemptCritical for aquaculture
Fishing boats (< 20m)89025%Mechanized & traditional
Fishing nets (nylon)56085%All fishing gear
Aquaculture equipmentVarious18%Aerators, RAS, pumps
Fish oil (crude)15045%For supplements, feed
Fish meal (animal feed)23015%Poultry/aqua feed input

Frequently Asked Questions

How does GST treat a fisherman differently from a fish trader — and what about fish auction markets?
FISHERMAN vs FISH TRADER — GST TREATMENT: FISHERMAN (Primary Producer): Defined as: person who catches fish from natural water bodies or farms fish. GST status: treated as AGRICULTURIST. Registration: NOT required (even if turnover exceeds ₹20 lakh). Output GST: ZERO (fresh fish is exempt). Input GST: cannot claim ITC (no output tax against which to offset). Tax burden: zero direct tax, but bears embedded input taxes (on fuel, nets, boat repairs). FISH TRADER (Middleman/Wholesale): Defined as: person who BUYS fish from fishermen/farmers and SELLS. If turnover > ₹20 lakh: MUST register for GST. If selling fresh fish (loose, unpackaged): EXEMPT output — no GST to charge. If selling frozen/processed fish: 5% or 12% GST. Can claim ITC on: transport, cold storage (if taxable), packaging, rent, electricity (commercial). PRACTICAL ISSUE: Trader buying from fisherman: no GST invoice (fisherman is unregistered + product exempt). Trader selling fresh fish to consumer: exempt (no invoice needed below ₹200). Trader selling fresh fish to restaurant (B2B): exempt but invoice required for tracking. Trader selling frozen fish: 5% — must issue tax invoice, file returns. FISH AUCTION MARKET: Fish brought by fishermen → auctioned at harbor market. Auction process: Commission agent (auctioneer): charges 5-8% commission. Commission is TAXABLE SERVICE: 18% GST on commission amount. BUT: under REVERSE CHARGE MECHANISM (RCM). RCM for agricultural produce: the BUYER (trader/processor) pays GST on commission, not the agent. Why RCM: commission agents are often small (below threshold) — easier for buyer to pay. Calculation example: Fish sold at auction: ₹1,00,000. Commission (6%): ₹6,000. GST on commission (18% under RCM): ₹1,080 — paid by the buyer (trader). Fisherman receives: ₹94,000 (₹1,00,000 - ₹6,000 commission). No GST impact on fisherman. FISH COOPERATIVE SOCIETY: Functions like dairy cooperative — aggregates fish from multiple fishermen. If coop only sells fresh fish: EXEMPT. If coop processes (freezes, packages): 5% on frozen, 12% on processed. Cooperative can register for GST and claim ITC on processing costs. This is WHY cooperatives are encouraged — they can operate more tax-efficiently than individual fishermen.
What's the GST situation for shrimp farming — India's biggest aquaculture sector?
SHRIMP FARMING (AQUACULTURE) — COMPLETE GST PICTURE: INDUSTRY SIZE: India: 2nd largest shrimp producer (after China). Annual production: 9-10 lakh tonnes. Andhra Pradesh: 70%+ of India's shrimp (Krishna, West Godavari, Nellore districts). Other states: Gujarat, Tamil Nadu, Odisha, West Bengal. Species: Vannamei (L. vannamei) — 90%+ of production. GST ON EACH COST COMPONENT: (1) LAND LEASE/POND: Rental of agricultural land: EXEMPT. Pond construction labor: 18% (if contractor registered) or exempt (if casual labor). Earth moving (JCB/excavator): 18%. (2) SHRIMP SEED (PL — Post Larvae): Purchase from hatchery: EXEMPT (live animals). Hatchery typically unregistered (seed is exempt output). This is farmer's 2nd largest cost (₹0.40-0.80 per PL × 50-80 PL/sq.m × lakhs of sq.m). (3) FEED (Largest cost — 55-65% of total): Shrimp feed: 5% GST. CP Feed (₹85-110/kg): 5%. Avanti Feed: 5%. Growel/Godrej: 5%. ITC not claimable by farmer (output shrimp is exempt). 5% on feed = direct cost for farmer (embedded). On 100-tonne farm: feed cost ₹85-95 lakh. GST on feed: ₹4.25-4.75 lakh (embedded, non-recoverable). (4) CHEMICALS & PROBIOTICS: Probiotics: 5% (if feed supplement) or 18% (if chemical product). Lime: 5%. Zeolite: 18%. Minerals: 5-18%. Dolomite: 5%. (5) ELECTRICITY & DIESEL: Electricity: outside GST (state subject). Diesel for aerators/generators: outside GST. These are major costs: 10-12% of production. NO GST relief possible (petroleum excluded from GST). (6) HARVEST & SALE: Farmer sells fresh shrimp to processor/trader: EXEMPT. Farmer sells at farm gate: EXEMPT. No GST registration needed by farmer. Payment: typically cash or bank transfer within 7-15 days. (7) PROCESSING FOR EXPORT: Processor buys at: EXEMPT (0% input). Processes (peeling, grading, freezing): internal. Packaging: 18% GST (ITC available). Export: zero rated. ITC refund: on packaging, transport, cold storage. NET TAX BURDEN ON SHRIMP FARMER: Direct GST paid: ₹0 (exempt output). Embedded GST (non-recoverable): Feed (5%): ₹4-5 lakh per ₹1 Cr production. Chemicals (5-18%): ₹0.5-1 lakh. Equipment (18%): ₹1-2 lakh (amortized). Total embedded: ₹5.5-8 lakh per ₹1 crore production. This is 5.5-8% of cost — significant for thin-margin farming (typical profit: 15-25%). FARMER'S WISH: Include shrimp feed in 0% (exempt) category. Reduce aquaculture equipment to 5%. Allow ITC for registered farmers (voluntary registration). Government: no change planned — current rates stable since 2017.
How do seafood exporters benefit from GST — and what's the ITC refund process?
SEAFOOD EXPORTERS — GST ADVANTAGES & ITC REFUND: WHY EXPORTERS LOVE GST: Pre-GST: Exporters faced cascading taxes (excise on packaging, VAT on inputs, entry tax). Refund mechanism was fragmented (central excise refund + state VAT refund — took 1-2 years). Post-GST: Single refund mechanism (IGST refund or ITC refund). Processing time: 30-60 days (improved from 1-2 years). Complete ITC availability on all business inputs. THE TWO EXPORT ROUTES: ROUTE A — EXPORT UNDER LUT (Letter of Undertaking): Exporter files LUT with GST department (annual). No IGST charged on export invoice. Accumulated ITC on inputs: claim refund via RFD-01. Refund processed: within 60 days (provisional 90% in 7 days). Suitable for: large exporters with significant ITC. ROUTE B — EXPORT WITH IGST PAYMENT: Charge IGST on export invoice (5% for frozen fish/shrimp). Shipping bill filed at customs: auto-generates IGST refund. Refund: credited to bank within 30-45 days (ICEGATE integration). Suitable for: exporters wanting faster refund (but blocks working capital). TYPICAL ITC FOR SEAFOOD EXPORTER: For ₹100 crore export turnover: Raw material (fish/shrimp from farmers): ₹60-70 crore — EXEMPT (no ITC). Processing labor: ₹5-8 crore — 18% GST if contract labor. Packaging: ₹3-5 crore — 18% GST. Cold storage/power: ₹2-3 crore — 18% GST. Transport to port: ₹2-3 crore — 18% GTA. Port handling: ₹1-2 crore — 18%. Total ITC available: ₹2-3.5 crore (on ₹13-21 crore taxable inputs). Entire amount: REFUNDABLE (since export is zero-rated). REFUND FILING (RFD-01): Filed monthly or quarterly. Documents: export invoices, shipping bills, bank realization certificate. Formula: ITC × (export turnover / total turnover). If 100% exporter: full ITC refunded. If 80% export + 20% domestic: 80% of ITC refunded, 20% used against domestic output. COMMON ISSUES: (1) ITC mismatch: vendor's GSTR-1 doesn't match exporter's GSTR-2A. Solution: reconcile with vendors monthly. (2) Refund delay: sometimes held up for 6+ months (deficiency memos). (3) Bank realization: must prove export proceeds received (FIRC/e-BRC). (4) Deemed export (supplies to EOU/SEZ): similar refund mechanism.
What about GST on fish sold through apps like Licious, FreshToHome — how does it work?
ONLINE FISH DELIVERY (Licious, FreshToHome, BigBasket) — GST FRAMEWORK: BUSINESS MODEL: These apps: buy fish/meat from farmers/fishermen → process (cut, clean, marinate) → deliver to consumers. They are MANUFACTURER + RETAILER (not marketplace). CLASSIFICATION & RATES: Fresh fish (cleaned, cut, on ice): EXEMPT — same as offline. Frozen fish (IQF portions): 5%. Marinated fish (ready-to-cook with masala): 12% (processed food product). Fish pickle/curry (ready-to-eat): 12%. Value-added (fish fingers, fish tikka frozen): 12%. HOW LICIOUS/FRESHTOHOME CHARGE: Fresh fish order (say ₹500 — unprocessed, chilled): Product: EXEMPT (₹500). Delivery fee: may be part of product price (exempt) or separate (18% on delivery). Most apps: include delivery in product price → EXEMPT on total. If delivery charged separately: ₹30-50 delivery × 18% = ₹5-9 GST. Marinated fish order (say ₹600 — value-added): Product: 12% → ₹72 GST. Delivery: bundled (composite supply — rate of principal supply = 12%). Total to consumer: ₹672. TAX COLLECTED AT SOURCE (TCS): If Licious sells through its OWN platform (own website/app): No TCS (it's direct sale, not e-commerce marketplace). Licious IS the seller — pays GST directly. If fish sold on Amazon/Flipkart/BigBasket marketplace: TCS: 1% collected by marketplace. Seller (fish vendor on platform): pays full GST. Marketplace commission: 18% GST (on commission earned). COMPARISON — OFFLINE vs ONLINE: Offline fish market (fresh): EXEMPT, zero paperwork. Online fresh fish (Licious): EXEMPT on fish, but company pays 18% GST on: warehouse rent, transport fleet, packaging, technology, salaries-related services. These are ABSORBED COSTS — not charged to consumer on exempt fish. This is why: online fish delivery margins are thin (8-15%). Embedded GST on operations: significant cost disadvantage vs traditional fish seller. FRESHTOHOME (unique model): Claims: farm-to-fork, no middleman. Buys from: fishermen at harbor (exempt purchase). Ships via: own cold chain (18% on logistics infrastructure). Sells: fresh (exempt) + frozen (5%) + marinated (12%). Registration: registered in multiple states (interstate supply). Compliance burden: monthly GSTR-1 + GSTR-3B in each registered state. Why they're still not profitable: GST on operations is a real factor (along with cold chain cost, marketing spend, and competitive pricing).

Fisheries & Aquaculture GST — Export Refunds, Feed ITC & Compliance

Laabam.One handles fisheries & aquaculture GST: exempt invoicing for fresh fish, frozen shrimp at 5%, processed seafood at 12%, aqua feed ITC management, fishing vessel procurement at 5%, seafood export zero-rating with LUT/ITC refund, fish auction RCM handling, and cold chain tax optimization.

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