Kachin media outlets said 30 people were killed and blamed the artillery strike on the military.
Kachin media shared a series of graphic images on Facebook of destruction, which could not immediately be verified by Reuters.
Others showed men in military attire sifting through wreckage and a man carrying the body of a small child.
The incident was the deadliest since an air strike in Myanmar's volatile Sagaing region in April that killed scores of people including civilians.
It sits close to the Chinese border and is home to many civilians living in displacement camps in and around the town.
Persons:
Kyaw Zaw, Martin Petty, Michael Perry
Organizations:
Kachin Independence Army, Reuters, Nations, National Unity Government, Kachin, Network Civil, Reuters Staff, Thomson
Locations:
China, Myanmar, Myanmar's, Kachin State, Kachin, Sagaing, Khon