Cash Package Scheme in Lue of LTC
The Government vide office memorandum no. F.No. 12(2)/2020—EH(A) dated 12 October 2020 announced the Cash Voucher LTC (Leave Travel Scheme) scheme for Government employees.
2. What is LTC Scheme? The Leave Travel Scheme is assistance received by the employee from his employer for traveling on leave. The employee and family can visit anywhere in India once in a block of 04 years. The current block period is 2018-21.
3. An employee can avail leave encashment for a maximum of 10 days during the period he avails LTC The leave encasements are payable on Basic pay + Dearness Allowance as on commencement of LTC.
4. In view of the Covid-19 pandemic and resultant nationwide lockdown as well as disruption of the transport and hospitality sector, as also the need for observing social distancing, a number of Central Government employees are not in a position to avail themselves of LTC for travel to any place in India or their Hometowns in the current Block of 2018-21.
5. With a view to compensate and incentivise consumption by Central Government employees thereby giving a boost to consumption expenditure, it has been decided by the Government that the cash equivalent of LTC, comprising Leave Encashment and LTC fare of the entitled LTC may be paid by way of reimbursement.
6. Conditions for reimbursement: The cash equivalent of entitled LTC Fare and leave encashment will be given to the employee subject to the following conditions:
6.1 The employee spends an amount equal to the value of leave encashment and an amount 3 times of the cash equivalent of deemed fare, on purchase of items or avail services.
6.2 The item purchase or services availed shall carry a GST Rates not less than 12%.
6.3 Such purchase shall be from GST registered vendors/service providers through digital mode
6.4 The employee shall obtain a voucher indicating the GST number and the amount of GST paid.
2. What is LTC Scheme? The Leave Travel Scheme is assistance received by the employee from his employer for traveling on leave. The employee and family can visit anywhere in India once in a block of 04 years. The current block period is 2018-21.
3. An employee can avail leave encashment for a maximum of 10 days during the period he avails LTC The leave encasements are payable on Basic pay + Dearness Allowance as on commencement of LTC.
4. In view of the Covid-19 pandemic and resultant nationwide lockdown as well as disruption of the transport and hospitality sector, as also the need for observing social distancing, a number of Central Government employees are not in a position to avail themselves of LTC for travel to any place in India or their Hometowns in the current Block of 2018-21.
5. With a view to compensate and incentivise consumption by Central Government employees thereby giving a boost to consumption expenditure, it has been decided by the Government that the cash equivalent of LTC, comprising Leave Encashment and LTC fare of the entitled LTC may be paid by way of reimbursement.
6. Conditions for reimbursement: The cash equivalent of entitled LTC Fare and leave encashment will be given to the employee subject to the following conditions:
6.1 The employee spends an amount equal to the value of leave encashment and an amount 3 times of the cash equivalent of deemed fare, on purchase of items or avail services.
6.2 The item purchase or services availed shall carry a GST Rates not less than 12%.
6.3 Such purchase shall be from GST registered vendors/service providers through digital mode
6.4 The employee shall obtain a voucher indicating the GST number and the amount of GST paid.