Zero-rated supplies to SEZs allow suppliers to supply under bond or LUT to avoid IGST and claim ITC. Supplies to a Special Economic Zone are treated as zero-rated supply under GST and regarded as exports; suppliers may either supply under bond or a letter of undertaking without payment of IGST and claim input tax credit, or supply on payment of IGST and claim a refund. Supplies by or to an SEZ developer/unit to the domestic tariff area are chargeable to customs duties equivalent to import duties under the SEZ provisions.