Can the LTC Cash Voucher Scheme bills be in the name of spouse, family members? Govt clarifies

The government has once again come out with clarifications regarding the Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-2021. This time, the clarifications are around the purchases being made by family members of the employee. Earlier, the government had issued a list of Frequently Asked Question (FAQ) to help employees get a better understanding of the working of the LTC fare scheme.

The recent clarifications on the LTC cash voucher scheme is around these points:

(i) Whether the advance taken as per the scheme shall be settled within 30 days of disbursal of advance and

(ii) Whether the invoice can be in the name of spouse and/or any family member who are eligible for LTC.

The government clarifies that as this is a Special Cash Package, the rules relating to advance taken under LTC are not applicable in the present Scheme.

Accordingly, as per the latest circular, it is clarified that:

(i) the advance taken under the scheme shall be settled on or before 31st March, 2021, and

(ii) 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.

Also, as per the LTC cash voucher scheme rules multiple bills are accepted. However, the employees need to ensure that the purchase should have been done from the date of issue of the LTC Cash Voucher Scheme Order dated October 12, 2020, till the end of the current Financial Year.

And most importantly, the purchase should carry a GST of 12% and above and payment should have been made through a digital mode. Any goods and services which attract GST of 12% and above would qualify. The invoice with GST details should be submitted and payment should have been made through digital mode. It was also clarified earlier that the procurement from e-commerce platform is also permissible provided the relevant invoice or details are submitted.

On October 12, the government by issuing a circular had introduced the Special Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21 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 to 31.03.2021. The LTC cash voucher scheme circular dated 12.10.2020 provides for advance to Government employees in lieu of LTC fare and Leave encashment.