The LTC Special Cash Package Scheme was announced by Ministry of Finance on 12.10.2020 . Later many Clarifications were issued one by one by the DoE which led to many confusion in submitting the bills for Final claims.
LTC Special Cash Package Order issued on 12.10.2020
First Clarification on 20.10.2020
Additional Clarification on 4.11.2020
Second Clarification on 10.11.2020
Third clarification on 25.11.2020
Fourth Clarification on 10.3.2021
The Scheme is valid only for 6 Months from 12.10.2020 to 31.3.2021. But altogether 5 Clarification were issued in different dates during this period. It is evident that these clarifications, instead of giving clarity, made this scheme very difficult to avail. The Employees who decided to avail this scheme left with more confusion in submitting their final claim. All the Claims to be settled before 31.3.2021. But the last Clarifications was issued on 10.3.2021.Initially the scheme was not very particular about mode of payment. But later the clarification issued on 10.11.2020 and 10.3.2021 says that the mode of payment to be digital.
The purpose of announcing the scheme as per the Finance Ministry is to increase the spending in the Market and to increase the GST revenue. But so many conditions were brought into effect to avail this scheme after products were purchased and obtained GST Bills for final Claim.
Initially it was told that purchasing Goods and Services which attract 12% GST and above is enough to claim under this scheme. Then so many restrictions were imposed
1.People thought that Insurance Premium which attracts 18% GST is Ok and purchased and obtained GST Bills. Then Clarification comes that Premiums of Existing Policy will not be allowed, Fresh Policy to be purchased.
2. Employees those who purchased Vehicles thought that Vehicle Registration Certificate and Insurance everything are in my name and it is too new purchase.So it will be allowed. Later comes clarification that Payment to be made through digital Mode.
The above examples shows that how this scheme become difficult for employees to get reimbursement after they spent their hard earned money for purchasing the items which attracts 12% GST and above.
The National Council JCM needs to take up this issue to the Government and necessary clarification to be issued to settle the LTC cash Package Claims by relaxing the conditions.
SK says
It is not worth to avail this LTC special cash benefit because whatever amount sanctioned to you is taxable and you need to spend 3 times the amount. Finally, you will end up in buying unwanted products and burden you with hefty credit card dues.