3 weeks ago

Shipki La trade faces fresh roadblock over IGST levy

Shipki La trade faces fresh roadblock over IGST levy
Shipki La border trade hits fresh roadblock over IGST levy · indianexpress.com

India and China are two big neighbors who share a long mountain border.

In one small mountain pass called Shipki La, people from nearby villages trade with each other.

This kind of trade is very old and works by swapping goods instead of paying money — it is called barter.

For six years, this trade was stopped because of the COVID-19 pandemic.

This month, it started again, and some traders crossed the border to swap goods.

But when they came back, tax officers asked them to pay a tax called IGST on the things they brought home.

The traders say this tax is meant for buying and selling with money, not for swapping goods with neighbors.

They think paying this tax is unfair, so they refused to take their goods home, and the trade has stopped again.

The traders have asked India's Prime Minister to fix the problem and let them trade without this tax.

Key facts

Trade Route
Shipki La pass, Kinnaur district, Himachal Pradesh
Status
Suspended by traders over IGST levy on Chinese imports
Previous Suspension
Six years, following the COVID-19 pandemic
Traders in First Batch
16 registered traders
Trade Value
Around Rs 2.10 lakh
Flag-off
By tribal minister Jagat Singh Negi on September 1
Key Demand
Exemption of Shipki La imports from IGST
Union President
Hishey Negi, Indo-China Border Trade Union

Quotes

Amit Kumar Sharma

Deputy Commissioner of Kinnaur

“The traders on the Indian side, from the nearby tribal villages, submitted that they would not charge IGST till 2019, and this time, customs officials slapped the IGST on the products.”
indianexpress.com
“The one-sided trade has been suspended due to the IGST issue. The barter trade is a traditional system and not a commercial import-export transaction involving monetary payment.”
indianexpress.com

Sources

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