The Kinnaur Indo-China Trade Association via Shipki La expressed disappointment and anguish over the continued silence of the central government on the Integrated Goods and Services Tax (IGST) issue that has once again brought traditional Shipki La border trade to a standstill.
“The most disappointing aspect is that the 57th GST Council meeting has concluded without any specific reference or decision on the Shipki La traditional border trade issue in its published recommendations, despite the matter having been repeatedly brought to the attention of the state government, the central government, the Union finance ministry and concerned authorities,” said Hishey Negi, president Kinnaur Indo-China Trade Association via Shipki La Kinnaur, Himachal Pradesh.
He said, “For us in Kinnaur, this is not simply a GST dispute. It is about whether the traditional livelihood of our border communities will be allowed to survive. This is a traditional barter-based border trade that has existed for generations. Our forefathers carried goods across these mountains and maintained economic links with communities across the border long before today’s modern taxation and commercial systems existed.”
“The traders have repeatedly demanded a jeepable road up to the Shipki La Trade Centre, but this fundamental infrastructure requirement has remained unresolved. The terrain is difficult. The altitude is extreme. The trading season is short. Transportation is expensive. Trading volumes are limited. And despite all this, the government is now applying IGST burden that traders have stated makes the traditional trade economically unviable,” said NEGI, adding that the association consequently suspended further operations after the first group returned following the August 1 reopening.
{{/usCountry}}“The traders have repeatedly demanded a jeepable road up to the Shipki La Trade Centre, but this fundamental infrastructure requirement has remained unresolved. The terrain is difficult. The altitude is extreme. The trading season is short. Transportation is expensive. Trading volumes are limited. And despite all this, the government is now applying IGST burden that traders have stated makes the traditional trade economically unviable,” said NEGI, adding that the association consequently suspended further operations after the first group returned following the August 1 reopening.
{{/usCountry}}The reopening of Shipki La trade on August 1, 2026, after approximately six years had created enormous hope among the people of upper Kinnaur. “The continued silence gives the impression that the concerns of a small tribal border community have not received the sensitivity they deserve. We urge the Centre to immediately resolve the IGST issue affecting Shipki La traditional trade, provide appropriate IGST exemption/relief for eligible traditional barter trade and issue a clear written clarification to customs and traders,” said Negi.