Let's say you have been allotted a seat in All India Counselling Round 1 in NEET PG, you have an option of Free Exit. This means that even if you do not report to the College or resign from the allotted seat, you will not be penalised. You can still appear for Round 2 of All India Counselling and at the same time also appear for State Counselling. And let's say you did attend your State Counselling and have been allotted a seat and join the College, you will get your refundable security deposit back that you paid for All India Counselling. So you can join the State Counselling allotted college.