J&K High Court: Cross-LOC Trade Falls Under Intra-State GST as PoK Is Part of J&K Territory

The Jammu & Kashmir and Ladakh High Court has held that cross-LOC trade carried out under the 2008 SOP constitutes intra-state supply, for GST purposes, since the areas under the de facto control of Pakistan continue to remain part of the territory of J&K in the eyes of law.

The Court observed that petitioners supplying goods across the LOC during the relevant period conducted intra-state transactions and were liable to self-assess GST. It noted that show-cause notices under Section 74(1) of the CGST Act, 2017, were valid and not barred by limitation.

The Court directed petitioners to file replies within four weeks and said appeals under Section 107 remain available after final orders.

[M/S New Gee Enn & Sons v. Union of India & Ors].