LTC Cash voucher scheme facilitates purchases in family member's name
LTC Cash voucher scheme facilitates purchases in family member's name
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The Finance Ministry has soothed some conditions for LTC Cash Voucher Scheme and advised all Central Ministries and Department to ensure festival advance is given before Diwali.

The second set of Frequently asked questions (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 percent or more, on or after October 12 even if they have not formally exercised the option of availing the scheme. The payments for such purchases have to be made through 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 question 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". The expenditure department, under the Finance Ministry, said the special cash package scheme in lieu of one LTC is to "compensate and incentivize consumption" by government employees and the benefits can be availed up to March 31, 2021.

The FAQ also explains that the 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. relating 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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