Intense clashes between stone-pelting youth and security forces also rocked Jamia Masjid and adjoining areas in Srinagar shortly after Friday prayers.
"Four policemen, three Central Reserve Police Force personnel and four civilians were injured in the terror attack."
The spokesman said it was learnt that an active terrorist of Hizbul, Farooq Ahmad Bhat, had received directions from terror handlers based in Pakistan to target the members of Panchayati Raj Institutions in Kulgam.
Two soldiers were injured in the initial firing, an army official said, adding that the cordon has been strengthened.
Pakistani troops violated ceasefire by firing mortar shells and small arms along the LoC in Poonch around 8 am on Monday.
No major clash was reported on Thursday from anywhere in Kashmir.
The BSF opened fire in Pakharpora near Charar-e-Sharif area to quell stone-pelting protesters in which at least one person was killed and five injured.