Refund Query

your meaning of your second option is

If you have paid tax while exporting then you can claim refund of that tax

Refund in case of zero rated supply:

Zero rated supply means:

Export of goods or services or both, or

Supply of goods or services or both to SEZ developer or SEZ unit.

A registered person making zero rated supply would be eligible to claim refund under following to options.

Supply goods or services or both under bond or LUT subject to conditions, without payment of IGST and claim refund of unutilized ITC.

Supply goods or services or both subject to conditions, on payment of IGST and claim refund of such IGST paid.