In a bid to stimulate demand within the financial system, the federal government on Monday introduced giving out money vouchers to central authorities staff this 12 months in lieu of go away journey concession (LTC) fare which may very well be spent solely on shopping for non-food GST-rated gadgets. Finance minister mentioned that the federal government will give Rs 10,000 particular competition advance all its staff as one-time measure to stimulate demand within the financial system.
Finance Minister Nirmala Sitharaman mentioned the workers may purchase gadgets that appeal to 12 per cent or extra items and providers tax (GST). These purchases must be made in digital mode from GST-registered retailers.
Below LTC Money Voucher Scheme, authorities staff can decide to obtain money amounting to depart encashment plus three instances ticket fare, to purchase gadgets which are a magnet for GST of 12% or extra. Solely digital transactions allowed, GST bill to be produced,” FM Nirmala Sitharaman mentioned.
Particular Competition Advance Scheme for non-gazetted staff is being revived as a one-time measure, for gazetted staff too
All central govt. staff can now get interest-free advance of Rs. 10,000, within the type of a pay as you go RuPay Card, to be spent by March 31, 2021 – FM pic.twitter.com/uvbcgm66iI
— Prasar Bharati Information Companies (@PBNS_India) October 12, 2020
Solely digital transactions shall be allowed on this and GST bill shall be produced, Sitharaman mentioned.
Go away Journey Concession (LTC) is out there to authorities staff and arranged sector staff. Each 4 years, central authorities staff get LTC to any vacation spot to their alternative plus one to their hometown.
Since journey is tough to undertake throughout the pandemic, the federal government pays the entitled fare as money vouchers which should be spent by March 31, 2021, she mentioned.
Central authorities payout on cash-in-lieu-for-LTC shall be Rs 5,675 crore, and one other Rs 1,900 crore shall be payout by central PSUs and public sector banks, Sitharaman mentioned.
The demand infusion due to this might be Rs 19,000 crore, and one other Rs 9,000 crore if half of the states comply with this guideline, she added.