Applicability of IGST or CGST/SGST

As per GST rules in India, when goods are delivered within India to a third party on the direction of a supplier located outside India( and billed to the overseas party), it may be treated as an export if certain conditions are met. In such cases, IGST would be applicable, and the supplier in India might be eligible for a refund of the IGST paid if the transaction meets export conditions. 

Supplier would not be eligible for refund as it can't be treated as export because as per the defintion of export of goods- Export means taking goods out of India to a place outside India.  Becuase in the case in Hand, material is not moving out of Indai, it doesn't satisfty the condtion of export of Goods.