Agri produce and GST and RoDTEP

J the App by JustIDT is delighted to share the snapshot on Agri produce exports, GST and Rodtep. Agricultural exports form a large share of India’s trade basket, but GST creates unique refund challenges since most agri-outputs are exempt while inputs such as fertilisers, pesticides, and packaging attract higher GST, leading to an inverted duty structure. Under Section 16 of the IGST Act, 2017, exports are treated as zero-rated supplies, entitling exporters to claim refunds either of unutilised ITC (under LUT) or of IGST paid on exports. Judicial rulings, notably Amit Cotton Industries v. UOI (2019, Gujarat HC), have affirmed that zero-rating overrides exemption, ensuring exporters are not denied ITC refunds merely because domestic supplies are exempt. The RoDTEP scheme (2021) partly bridges a gap by rebating hidden, un-creditable levies (e.g., mandi tax, electricity duty), especially relevant for farm and perishable goods. Together, ITC refunds and RoDTEP are critical in ensuring that India’s agri-produce exports remain globally competitive and WTO-compliant.