June 2, 2023

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LTC cash voucher: Central govt employees can make purchases in eligible family member’s name

Under the LTC voucher scheme, central government employees can make purchases in the name of any eligible family member or spouse to claim the applicable cash reimbursement.
Any central government employee opting for the Leave Travel Concession (LTC) voucher scheme can buy goods and services in the name of their spouse or family members, who are eligible for the LTC fare.
The Department of Expenditure has recently released a second set of frequently asked questions (FAQs) regarding the LTC voucher scheme.
“The invoices of the goods and services purchased as per the scheme may be in the name of spouse or any family member who is eligible for LTC fare as declared in the service records,” said one of the questions listed in the FAQ.
In the fresh notification, the department also clarified that an employee can claim reimbursement for the purchase of goods and services on or after October 12, even if the individual has not formally availed of the scheme. However, the goods and services need to attract 12 per cent GST, as per the guidelines.
In October, Finance Minister Nirmala Sitharaman made an announcement about the government’s LTC cash voucher scheme to boost consumer spending. Central government employees can avail of the cash benefit under the scheme by purchasing any goods or services attracting 12 per cent GST.
It may be noted that payments for such purchases need to be made digitally or through cheque, demand draft, NEFT, or RTGS.
The new scheme was introduced in view of the prevailing pandemic situation. The government said that since most of its employees may not be traveling this year due to Covid-19, the LTC cash voucher scheme will help them earn cash benefits.
The government also clarified that the purchase of goods and services on EMI is also permissible under the scheme, provided they have a GST invoice and have been bought after October 12.

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