Nirmala Sitharaman: Centre to present money vouchers to workers in lieu of LTC this 12 months | India Enterprise Information

NEW DELHI: In a bid to stimulate demand within the economic system, the federal government on Monday introduced giving out money vouchers to central authorities staff this 12 months in lieu of depart journey concession (LTC) fare which may very well be spent solely on shopping for non-food GST-rated gadgets.
Finance minister Nirmala Sitharaman mentioned the staff may purchase gadgets that appeal to 12 per cent or extra items and companies tax (GST). These purchases must be made in digital mode from GST-registered retailers.
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 through the pandemic, the federal government pays the entitled fare as money vouchers which need to 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 may be Rs 19,000 crore, and one other Rs 9,000 crore if half of the states comply with this guideline, she added.

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