Delhi govt employees need to purchase only from city-registered dealers to avail LTC scheme benefits

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New Delhi, Oct 30 (PTI) Delhi government employees seeking to avail the benefits of the Leave Travel Concession (LTC) cash voucher scheme will be required to purchase goods and services from dealers located and registered in the city.

The move will increase the Delhi government's GST collection, an official said.

The finance department issued the order following the approval of Deputy Chief Minister Manish Sisodia, who also holds the finance portfolio.

'It has to be ensured that while availing the special cash package, goods and services are purchased from a dealer located and registered in the NCT of Delhi. This order will be effective with immediate effect,' the department said.

Delhi government employees welfare association general secretary Umesh Batra welcomed the decision, saying it will stimulate consumer demand during the festival season and boost the economy. There are two lakh Delhi government employees, he said.

On October 22, the city government in a statement said cash equivalent of LTC will be given to its employees by way of reimbursement if an employee opts for this in lieu of LTC in the block of 2018-21.

'The employees who are entitled to business class airfare will get Rs 36,000 LTC, followed by Rs 20,000 for the employees who are entitled to an economy class of airfare. The employees who are entitled to rail fare of any class will get Rs 6,000 LTC,' it had said.

The Delhi government's decision came after the Centre on October 12 announced the LTC cash voucher scheme, under which central government employees can purchase any goods or services with GST rate of 12 per cent or above to avail the benefit.

Till now, employees got LTC benefits only on travelling or had to forgo the amount. PTI BUN DPB