Section 123 - Amendment of section 16.

Zero rated supply refund: input tax credit reclaimable without integrated tax when exports use bond or Letter of Undertaking.

Section 16 is amended to restrict clause (b) to supplies 'for authorised operations' and to permit registered persons making zero rated supply to claim refund of unutilised input tax credit without payment of integrated tax when exported under bond or Letter of Undertaking, subject to prescribed conditions. For exported goods, non-realisation of sale proceeds requires deposit of the refund with applicable interest within thirty days after expiry of the foreign exchange realisation period. The Government may notify classes of persons or classes of goods or services who may instead export on payment of integrated tax and subsequently claim refund.