The Centre on Monday announced giving out cash vouchers to central government employees this year in lieu of leave travel concession (LTC) fare which could be spent only on buying non-food GST-rated items.
Finance minister Nirmala Sitharaman said that the government will give Rs 10,000 special festival advance to all its employees as one-time measure to stimulate demand in the economy.
Sitharaman said the employees could buy items that attract 12 per cent or more goods and services tax (GST).
She said these purchases will have to be made in digital mode from GST-registered outlets.
“Under LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus 3 times ticket fare, to buy items which attract GST of 12% or more. Only digital transactions allowed, GST invoice to be produced,” Sitharaman said.
Leave Travel Concession (LTC) is available to government employees and organized sector employees.
Every four years, central government employees get LTC to any destination to their choice plus one to their hometown.