Gujarat Removes 20-Metre Boat Limit for Diesel VAT Relief Scheme, Extends Benefit to Over 18,000 Fishing Vessels

The Gujarat government has removed the 20-metre length restriction for mechanised fishing boats under its diesel VAT relief scheme, allowing all eligible vessels, including deep-sea fishing boats, to access the subsidy.

The decision was approved during the State Cabinet meeting chaired by Chief Minister Bhupendra Patel on Wednesday.

Government spokesperson and Minister Jitu Vaghani said the amendment was made to the existing scheme that provides VAT relief on diesel used by mechanised fishing boats. The move aims to support the economic interests of the state’s fishing community by reducing fuel-related expenses.

Under the earlier rules, only mechanised fishing boats measuring less than 20 metres were eligible for diesel VAT relief. The revised policy removes this condition, allowing small, medium and large mechanised fishing vessels to avail of the scheme.

“In the larger interest of the fishing community, the government has decided to completely remove the 20-metre length restriction. As a result, all mechanised fishing boats in the state, including deep-sea fishing boats, will now be eligible to avail of the scheme,” Vaghani said.

Over 18,000 boats expected to benefit

Following the amendment, more than 18,000 registered mechanised fishing boats across Gujarat are expected to qualify for diesel VAT relief.

However, boats must meet certain eligibility requirements to receive the benefit:

• The vessel must be registered on the Real Craft Portal.
• The owner must hold a valid fishing licence.

Vaghani said these conditions would remain compulsory under the revised scheme.

Diesel Card to provide VAT relief

Under the updated policy, eligible fishing boats will be issued a ‘Diesel Card’ by the state government. Cardholders will receive VAT relief of up to ₹15 per litre on diesel purchases.

If the applicable VAT amount is below ₹15 per litre, the relief will be limited to the actual VAT charged on diesel.

The government said the revised scheme would help fishermen operating different sizes of mechanised boats by reducing daily fuel costs and strengthening their livelihoods.

Vaghani also appealed to fishermen who have not yet completed registration on the Real Craft Portal or obtained a valid fishing licence to complete the necessary formalities at the earliest to access the scheme.