In India, fishing nets are classified under the Goods and Services Tax （GST） regime based on their type and usage. The GST rate applicable to fishing nets varies depending on whether they are handmade or machine-made.
Handmade fishing nets, which are commonly used by traditional fishermen in coastal areas, typically attract a lower GST rate of 5%. This is part of the government\“s effort to support small-scale fishermen and promote traditional fishing practices.
On the other hand, machine-made fishing nets, often used by commercial fishing operations, are subject to a standard GST rate of 12%. These nets are usually more durable and are designed for large-scale fishing activities.
It\“s important for fishermen and suppliers to correctly classify their fishing nets to ensure proper GST compliance. The GST rates are periodically reviewed by the GST Council, so stakeholders should stay updated with any changes in tax rates.
Many local manufacturers in states like Kerala, Tamil Nadu, and Gujarat produce fishing nets that cater to both domestic and international markets. Understanding the correct GST rate helps in pricing and compliance for these businesses. |
