Kinnaur traders seek IGST relief to resume Shipki La border barter trade

The Kinnaur Indo-China Trade Association has urged the Centre to exempt traditional Indo-China Border Barter Trade through Shipki La from Integrated Goods and Services Tax (IGST), stating that the levy has placed a financial burden on traders and affected the viability of the historic trade route.

The association announced a complete boycott of the trade on Wednesday in protest against the imposition of IGST on imported goods and said traders would continue the suspension until their demand is addressed by the government.

In a memorandum submitted to the Union Finance Ministry, the association said registered border traders had “temporarily suspended their participation in the trade through Shipki La until the IGST issue is suitably resolved by the Government of India through an exemption or appropriate policy clarification.”

“This decision has been taken with great reluctance and only because continuation of the trade under the present tax regime has become economically unviable for border traders. The association sincerely hopes that the matter will receive urgent consideration so that this historic border trade may resume at the earliest,” it said.

The association argued that the Shipki La trade is a government-notified traditional barter system carried out without monetary consideration, banking transactions or foreign exchange. It said the trade is different from conventional commercial imports and was revived to preserve traditional practices, strengthen border communities and support livelihood opportunities in the remote tribal areas of Kinnaur.

The traders pointed out that while basic Customs Duty has been exempted on notified border trade goods under existing Customs exemption notifications, the recent levy of IGST has created a significant financial burden for registered traders.

The association has urged the government to consider the matter from a policy perspective and provide an exemption or clarification to ensure that the traditional trade remains economically viable and aligned with the objectives of tribal welfare, border area development and the Vibrant Villages Programme.

What traders want

• Exemption from IGST on goods imported under the notified Indo-China Border Barter Trade through Shipki La.
• A clarification that IGST was not intended to apply to government-notified traditional barter transactions.
• Keeping IGST recovery in abeyance until the issue is examined and resolved.