Refund of unutilized input tax credit shall be allowed only in two scenarios.
Refund of unutilized input tax credit shall be allowed only for Exports including Zero rated supplies (SEZ Supplies). The Ministry has confirmed that refund of 90% of the duties paid by exporters in the process of manufacturing items for export would be made within a period of seven days under the Goods and Services Tax (GST) regime on provisional basis. The remaining 10% refund will be made after verifications by tax authorities.
Credit accumulation due to inverted duty structure.
Casual taxable persons or Non-resident taxable persons are required to make an advance payment of estimated tax liability at time of registration application
Refund of tax, if any excess paid shall be allowed subjected to that the dealer must file all the returns.
Tax refund for international tourist scheme provide an opportunity to foreign tourist to buy goods manufactured during their stay in any country and claim refund of the tax suffered on such goods at the time of their exit from the country. In India, it is expected that the scheme will be implemented through the retailer registered for the purpose of this scheme.
Supply of goods and/ or services to or by a SEZ developer or an SEZ unit, shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce and would be Zero rated supplies.
However, probably as it exists today such upfront exemptions could be subjected to certain conditions only after fulfilling these conditions it is likely that the SEZs would enjoy the abinitio exemption else, they would have to opt for refund route