Area upto 12 nautical miles belongs to State

Area upto 12 nautical miles belongs to State :

Area upto 12 nautical miles belong to State/Union Territory at least as far as GST is concerned.

Notwithstanding anything contained in IGST 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 – section 9 of IGST Act.

This view has been held by High Courts also.

Sovereignty of State extends to 12 nautical miles. Hence, any sale which is within 12 nautical miles is taxable by the State concerned (i.e. it is local sale i.e. Sale within the State) – Great Eastern Shipping v. State of Karnataka (2000) 117 STC 437 (Karn HC) – view confirmed in Great Eastern Shipping v. State of Karnataka (2004) 136 STC 519 (Karn HC DB) – same view in A.M.S.S.V.M Company v. State of Madras AIR 1954 Mad HC DB 291.

Person supplying goods or services from territorial waters should register in coastal state or Union Territory – Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate base line is located – Explanation to section 25(1) of CGST Act.