Ahead of the 57th GST Council meeting scheduled for October 7, 2026 in Delhi, the Kinnaur Indo-China Trade Association has renewed its demand for exemption from Integrated Goods and Services Tax (IGST) for traditional trade through Shipki La.
Association president Hishey Negi said trade through Shipki La cannot be compared with conventional commercial imports through established ports.
“It is a traditional border trade system with a distinct historical, geographical and economic character, which has traditionally involved barter and exchange of goods rather than conventional commercial transactions involving regular international payment mechanisms,” Negi said, justifying the demand for IGST exemption.
The traditional trade, which resumed on August 5 this year after a gap of seven years, came to a halt within a week due to imposition of IGST. Traders from border villages refused to go across to China with their goods after IGST was levied.
The Association has requested the GST Council Secretariat, Ministry of Finance, CBIC and other authorities concerned to place the matter before the appropriate forum for consideration.
The Association has urged the Government to examine the IGST issue in the context of the historical customs framework governing Shipki La trade, including the Customs notification of July 23, 1996, and subsequent changes after the introduction of GST.
He said the exceptional geographical conditions of Shipki La require special consideration.
“The trading route is located in an extremely high-altitude and difficult terrain, with severe climatic conditions and a short trading season. Even today, traders continue to depend substantially on mules and traditional modes of transportation for movement of goods,” he said.
The Association further pointed out that the permissible import list remains limited, while several items are practically difficult or impossible to import due to absence of an adequate quarantine centre and related inspection infrastructure at Shipki La.
“Therefore, there is a substantial difference between what may technically be included in an import list and what is actually viable for transportation and trade under the prevailing geographical and infrastructural conditions,” Negi said.
