LTC Cash Voucher and Festival Advance Scheme: Govt employees can make purchases in family member’s name

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LTC Cash Voucher and Festival Advance Scheme: Govt employees can make purchases in family member’s name

LTC Cash Voucher and Festival Advance Scheme: Govt employees can make purchases in family member's name Central government employees availing the LTC

Clarification on Special cash package in lieu of Leave Travel Concession Fare during the Block Year 2018-21: FAQ 2 by FinMin Dtd. 10 Nov 2020
LTC Special Cash Package: Common discrepancies while submission of final adjustment claims – PCDA (WC) observation
Submission of final adjustment claims on account of Special Cash Package in lieu of LTC for the block year 2018-2021 (All India/Home Town)

LTC Cash Voucher and Festival Advance Scheme: Govt employees can make purchases in family member’s name

Central government employees availing the LTC cash voucher scheme can purchase goods or services in the name of spouse or other family members eligible for LTC fare.

ltc-cash-voucher-and-festival-advance-scheme-govt-employees-can-make-purchases-in-family-members-name

The second set of FAQ issued by the Department of Expenditure also clarified that an employee can claim reimbursement for the purchase of goods and services, attracting GST of 12 per cent or more, on or after October 12 even if he/she has not formally exercised the option of availing the scheme.

The government on October 12 announced the LTC cash voucher scheme under which employees can purchase any goods or services with a GST rate of 12 per cent or above to avail the benefit. The payments for such purchases have to be made via digital mode or cheque, demand draft, NEFT/RTGS.

So far employees had only Leave Travel Concession (LTC) benefits on travels made or forgo the amount.

To a query on whether purchase receipt can be in the name of any dependent, the FAQ said, “The invoices of the goods and services purchased as per the scheme may be in the name of spouse or any family member who are eligible for LTC fare as declared in the service records”.

View: LTC Cash Voucher Scheme 2020 Application Form Download

View: LTC Cash Vouchers Scheme: केन्द्रीय कर्मचारियों के लिए एलटीसी एवं लीव इनकैशमेंट के बदले विशेष कैश पैकेज; जानिए क्या है विशेष कैश पैकेज ; बिन्दुबार सम्पूर्ण जानकारी

View: Misinterpretation of LTC stimulus and its benefits; Statement by Ministry of Finance

View: LTC Cash Vouchers Scheme: Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees; FinMin OM Dt. 12 Oct 2020

The expenditure department, under the Finance Ministry, said the special cash package scheme in lieu of one LTC is to “compensate and incentivise consumption” by government employees and the benefits can be availed up toMarch 31, 2021.

The FAQ also clarified that purchase of goods or services on EMI is also permissible under the scheme provided they have been bought after October 12 and have a GST invoice.

With regard to a query on whether reimbursement would be available for items purchased after October 12, 2020, but before formally exercising the option of LTC cash voucher scheme, the FAQ said, “All eligible purchases on or after October 12, 2020, but before March 31, 2021, can be counted”.

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