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Cross-LoC Trade Subject to GST, Rules J&K High Court; Cites PoK’s Legal Status as Part of India
The court ruled that trade across the Line of Control is intra-state under GST as Pakistan-occupied Kashmir is legally part of Jammu & Kashmir, affecting traders from 2017-2019.
- The Jammu and Kashmir High Court, division bench of Justice Sanjeev Kumar and Justice Sanjay Parihar, held cross‑LoC trade with PoK is intra‑state, dismissing petitions.
- When the cross‑LoC trade started in 2008 as a confidence‑building measure, the barter exchanges along routes including Uri and Poonch operated on a zero‑tax basis before suspension after the February 14, 2019 Pulwama attack.
- Tax notices under the CGST Act 2017 alleged unpaid GST on supplies during 2017–2019, issued by the Superintendent, CGST, Srinagar, after traders treated movements as zero‑rated and did not declare them.
- The court dismissed the petitions and gave traders four weeks to respond to notices, directing adjudication by the competent authority and appeals under Section 107.
- By clarifying the intra‑state supply test, the bench positioned authorities to treat such exchanges as taxable, declaring its finding binding as tax department raised GST demands affecting past liabilities.
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HC says cross-LoC trade between JandK and PoK is intra-state trade
Jammu and Kashmir High Court ruled cross-LoC trade as intra-state, asserting Pakistan-occupied Kashmir is part of the Union Territory. The court dismissed petitions from traders challenging GST notices, stating the trade was internal. This ruling comes after the Indian government suspended ...
Cross-LoC trade subject to GST, rules J&K High Court; cites PoK’s legal status as part of India
A bench of Justices Sanjeev Kumar and Sanjay Parihar observed that the areas presently under the de-facto control of Pakistan are legally a part of the erstwhile state of Jammu and Kashmir.
·New Delhi, India
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Total News Sources11
Leaning Left3Leaning Right2Center2Last UpdatedBias Distribution43% Left
Bias Distribution
- 43% of the sources lean Left
43% Left
L 43%
C 29%
R 28%
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