Since PoK is part of India, cross-LoC trade is intra-state trade: HC, Pg13

Key Highlights:

• The J&K High Court declared that trade across the Line of Control (LoC) is intra-state trade because Pakistan Occupied Kashmir (PoK) is part of India.
• Cross-LoC trade began in 2008 as a confidence-building measure between India and Pakistan.
• India suspended cross-LoC trade after the February 14, 2019, Pulwama attack.
• The petitioners challenged notices under the Central Goods and Services Tax Act, 2017, related to cross-LoC trade from 2017 to 2019.

Detailed Insights:

• The petitioners argued that cross-LoC trade should be considered import and export between two nations, but the court rejected this argument.
• The court emphasized that the area under Pakistan's control is part of the territories of the former State of Jammu and Kashmir, now a Union Territory.
• The ruling clarifies that the location of suppliers and the place of supply were within the then State of J&K, making the trade intra-state.
• This decision has implications for the application of the GST Act to cross-LoC trade during the specified period.

Key Concepts Involved:

• Line of Control (LoC): The demarcation line between Indian-administered and Pakistani-administered Kashmir.
• Intra-state Trade: Trade that occurs within the boundaries of a single state or union territory.
• Central Goods and Services Tax (CGST) Act, 2017: The law governing the imposition and collection of GST on intra-state supplies of goods and services in India.