Chapter IV - Determination of nature of supply
Section 9
Section 9: Supplies in territorial waters
Section 9 assigns a coastal State or Union territory to a supplier location or place of supply in territorial waters.
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Need advice on Section 9?
This article is for general information. Refer to the Integrated Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Key takeaways
Supplier in territorial waters
The supplier location is deemed in the coastal State or UT nearest the appropriate baseline.
Place of supply in territorial waters
The same nearest-baseline rule locates the place of supply.
Classification follows
Use the deemed location with Sections 7 and 8 to decide inter-State or intra-State character.
Supplier in territorial waters
The supplier location is deemed in the coastal State or UT nearest the appropriate baseline.
Place of supply in territorial waters
The same nearest-baseline rule locates the place of supply.
Classification follows
Use the deemed location with Sections 7 and 8 to decide inter-State or intra-State character.
Practical checklist
Do
- Record the actual offshore location.
- Identify the nearest point of the appropriate baseline and coastal jurisdiction.
- Apply the resulting deemed location to the nature-of-supply test.
Frequently asked questions
Is a territorial-water location left outside State classification?
No. Section 9 deems it to be in the relevant coastal State or UT.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026