Cross-LoC Trade Subject to GST: J&K High Court Decision
A bench of Justices Sanjeev Kumar and Sanjay Parihar of the Jammu and Kashmir High Court ruled that trade across the Line of Control (LoC) falls under the Goods and Services Tax (GST) regulations. The court's ruling emphasized the legal status of Pakistan-occupied Kashmir (PoK) as an integral part of India.
Key Points of the Judgment
- The court observed that areas currently under Pakistan's de-facto control, including PoK, remain legally part of India.
- Therefore, all trade directly or indirectly involving these regions must comply with Indian GST rules.
- This judgment reinforces India’s constitutional and legal stance on territorial integrity concerning PoK.
Implication for Cross-LoC Trade
The ruling clarifies that businesses involved in cross-LoC trade must adhere to GST compliance, impacting taxation and regulatory procedures for these transactions.
“The legal status of PoK as part of India is undisputed, and GST laws apply accordingly,” the court stated.
This judgment underlines the Indian judiciary’s position on PoK's status and extends the applicability of India's GST framework to cross-LoC economic activities, ensuring legal uniformity.
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