Govt announces new deadline for the special cash package Scheme LTC

By Sanjay Maurya

News Highlights

• The deadline for full and final payment of bills related to the LTC special cash package program has been extended by the national govt.
• Central government employees will now be able to file bills by May 31, 2021.
• The government allowed them to collect cash through a cash voucher system. The invoice for the goods/services must be rendered in a digital format.

New Deadline for the LTC special cash package Scheme

The deadline for full and final payment of bills related to the LTC special Cash package program has been extended by the national govt, giving relief to federal workers. Central Government Employees will now be able to file bills by May 31, 2021. An Office Memorandum has already been issued by the Ministry of Finance’s Department of Expenditure on this subject.

Since it was expensive for central Government Employees to fly and take advantage of LTC benefits, the government allowed them to collect cash through a cash voucher system, in which they had to pay bills/claims to their respective departments and receive cash in exchange.

“Keeping because of practical difficulties in submission of bills/claims for transactions made especially in late hours of 31st March 2021(including on-line purchases), it is explained that submission of bills/claims may be entertained and resolved by Ministries/Departments not later than 30th April 2021,” the Department of Expenditure said in an Office Memorandum (O.M.) dated March 31, 2021. The deadline for the LTC special cash scheme had previously been set for March 31, 2021, but it was then extended to April 30, 2021, and now to May 31, 2021.

About LTC special cash package scheme

The program was originally designed for government employees, but it was later expanded to include private-sector staff. Employees must send bills for sales made between October 12 and March 31 to be eligible for the benefit under this program.

The sum that must be paid is three and a half times the deemed LTC fare. The scheme will be used to demand GST on bills of goods and services at a rate of 12 percent or more. The invoice for the goods/services must be rendered in a digital format.

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