Undertakers - beware - Why LUT? - Do we collect tax by undertaking or law?

Being a regular reader of article of the author right from the time of DDT but this time not convinced with the views expressed by the author for justification of furnishing of LUT for export of goods or services without payment of duty. I think as per section 5 of IGST Act, there shall be levied IGST on every interstate supplies which also covers zero rate supply. That means without payment of tax, no supply can be made. However, in order to give relaxation for non payment, the Government has allowed zero rated supply without payment of tax under LUT on compliance of certain procedure enumerated in Rule 96Z. This is a sort of facilitation of export and in order to save its interest, they have safeguarded the revenue by way of binding the exporter to pay tax alongwith interest in case no export is made. Whenever there is a relaxation in legislation that must be supported with counter checks which is there in this case. Yes it is correct that export can be made without executing LUT but how to ensure the things, a mechanism has been evolved in form of LUT. In order to maintain its dignity, every Society makes its law for smooth functioning. Marriage is a law of society which gives right two persons to live together and give rise to its offspring. Even without legitimate marriage, children can be produced, then what is the need for marriage. That is the law of society, we have to follow. Similar is the sanctity of following laws of taxation. We are not here to please the taxman. We must encourage them to follow the law of land. Thanks

cestat cestat 16/04/2020