Question

I am an exporter having office at Delhi. I have export sales from India and Non-GST Sales procured from outside India and sold outside India without touching customs fronties of India. We pay GST on ocean freight on Non-GST Supply in this process. Can we claim refund of GST paid on ocean freight on Non-GST Supply as amended in Schedule III of GST Act 2018 ? What is the effective date of these amendments. Can we claim credit of IGST paid in the months of April - Aug.2018 ?

Answer

As per section 17(2) credit is restricted as follows:
Where goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.

where 'exempt supply' means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply

As credit is not allowed on Non taxable supply therefore you are not eligible for credit on Ocean freight related to non GST supply.

Further Section 54 of CGST Act relating to Refund of tax provides that no refund of unutilised input tax credit shall be allowed in cases other than

(i) zero rated supplies made without payment of tax;

(ii) 'where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council

As your case is not covered under any of the above two situations and also you are not eligible for credit as per section 17 of CGST, so the question of refund does not arise.
Press release dated 21-7-2018 vide s.no. 9 and CGST Amendment Act 2018 has covered the following transactions under Schedule III:
a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
However till now the same has not been notified by CBIC. It will become effective only from the date of Notification. As soon as the notification is issued you will be informed. (Reply dt.06/11/2018)