Clarification issued by PIB: Ministry of Finance statement on misinterpretation of LTC stimulus and its benefits

This notification has been released by Press Information Bureau (PIB) on behalf of Ministry of Finance on 13 October, 2020. This press release is based on a report published by Economic Times Market related to the LTC voucher scheme for Government employees. The report raised questions on the LTC government scheme which the Ministry of Finance clarified in the abovementioned press release.

The Ministry of Finance mainly concentrated on describing the LTC scheme and how it is different from other allowances by the corporate bodies. The Ministry of Finance in the report clarified that employee has only two options under the government system either to travel and claim for the expenses or forgo the entitlement if not stated within the date.

The government added a new option related to the LTC scheme where the government employees can use it to buy things and that’s where the Economic Times Market report raises question related to the non payment of GST while buying things. This contention has been quashed by the Ministry of Finance in the given circular.

On a concluding remark the Ministry of Finance has used this press release to show that how the government employees have been given all their salaries and used it to boost the achievements of Government during the unprecedented time.

The clarification released by PIB can be accessed here.

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