Provisions under Section 9 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Supplies in Territorial Waters”, are as under:
Section 9 of IGST Act 2017: Supplies in Territorial Waters (CHAPTER IV – DETERMINATION OF NATURE OF SUPPLY)
Notwithstanding anything contained in this Act,–
(a) where the location of the supplier is in the territorial waters, the location of such supplier; or
(b) where the place of supply is in the territorial waters, the place of supply,
shall, for the purposes of this Act, be deemed to be in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
| Note: CBEC notifies 01/07/2017 as the commencement date in respect of Sections 4 to 13, 16 to 19, 21 and 23 to 25 of the IGST Act, 2017, vide Notification 3/2017. |
Amendments History:
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Commentary on Section 9 of the IGST Act
Section 9 of the Integrated Goods and Services Tax (IGST) Act, 2017 is relevant when goods or services are supplied in the territorial waters of India, which extends up to 12 nautical miles from the baseline of the coast. The section establishes rules for determining the location of the supplier and the place of supply in such cases. The key points of Section 9 are as follows:
i) Notwithstanding clause: This clause implies that the provisions of Section 9 will apply despite any other provision in the IGST Act, 2017.
ii) Location of the supplier: If the supplier’s location is within the territorial waters, their location is deemed to be in the coastal State or Union Territory (UT) closest to the point on the appropriate baseline. This is important for determining the correct State or UT to which the tax revenue should be attributed.
iii) Place of supply: Similarly, if the place of supply is within the territorial waters, it is deemed to be in the coastal State or UT closest to the point on the appropriate baseline. The place of supply is a crucial concept in the GST framework as it helps determine whether a transaction is intra-state or inter-state and consequently whether the Central GST (CGST) and State GST (SGST) or the IGST should apply.
In summary, Section 9 of the IGST Act, 2017 provides specific rules for determining the location of the supplier and the place of supply in transactions involving goods or services supplied in India’s territorial waters. This is crucial for determining the appropriate tax jurisdiction and the type of GST applicable (CGST and SGST or IGST) in such transactions.
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Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.
| CBIC Updates (GST) |
| Index of GST Circulars, Notifications, Press Releases, Orders, etc. issued by CBIC from 2017 and onwards along with Section-wise/ Rule-wise Text of GST Acts/ Rules: |
| CGST: CGST Act/ Definitions, CGST Rules, GST Forms |
| IGST: IGST Act/ Definitions, IGST Rules |
| UTGST: UTGST Act/ Definitions, UTGST Rules |
| GST Circulars (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| GST Instructions: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CGST Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017 |
| IGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017 |
| UT Tax/ UTGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| Compensation Cess Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| Compensation Cess Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CBIC Orders (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CBIC Press Releases: 2020, 2019, 2018, 2017 |
| Note: For Official/ updated copy, please visit the CBIC website. |
