Explain the concept of "zero rated supply" and refund claim therefor, under IGST.

Exports and supplies to SEZs are considered as "zero rated supply" on which no tax is payable. However, ITC is allowed, subject to such conditions, safeguards and procedures as may be prescribed and refunds in respect of such supplies may be claimed by following either of these options. Supply made without payment of IGST under Letter of Undertaking (LUT)/bond and claim refund of unutilized ITC. Supply made on payment of IGST and claim refund of the same.