New Delhi: With the LTC Cash Voucher Scheme expected to be a highlight of the 2026 Union Budget, Central Government employees must prepare their “Shopping Strategy” to avoid claim rejections. The most common reason for rejection is an invalid GST invoice. To claim your deemed fare in cash, you must ensure your purchases meet the strict “Digital & GST” criteria set by the Department of Expenditure.
✅ THE 3X RULE: To get 100% of your travel fare in cash, you must spend three times (3x) that amount on goods/services with at least 12% GST. Example: To claim ₹20,000 fare, your total bill must be at least ₹60,000.
Use these official portals to verify your vendor’s GST status and check the latest ‘Frequently Asked Questions’ (FAQs) on LTC claims:
*Note: Always verify the GSTIN on your bill matches the portal record before submitting.*
1. List of Valid Items (12% GST or Higher)
You cannot claim the benefit on groceries or 5% GST items. Here are the most popular valid categories for 2026:
| Category | GST Rate | Examples |
|---|---|---|
| Electronics | 18% | Mobiles, Laptops, LED TVs |
| Home Appliances | 12% – 18% | ACs, Refrigerators, Geysers |
| Vehicles | 28% | Cars, Two-Wheelers |
| Services | 18% | Term Insurance, Health Insurance |
| Home Decor | 18% | Paints, Tiles, Sanitaryware |
2. The “Digital Trail” Requirement
As per the LTC Cash Voucher Scheme rules, cash payments are completely prohibited. To ensure your bill is “Audit-Proof”:
- Pay via UPI/Card: The transaction must show in your bank statement.
- Name Match: The invoice must be in the name of the Government Employee (Self).
- GST Number: The vendor’s GST number must be printed clearly on the bill.
3. Internal Linking: Boost Your Savings
If you have recently received your CEA (Children Education Allowance) or your NDA Arrears, you can combine those funds to make these 3x purchases, effectively getting your travel fare back in cash while upgrading your home.
4. How to Submit the Claim?
Submit your claim in the LTC Advance/Settlement Form. Attach the original GST Tax Invoice and a copy of your bank statement highlighting the digital payment. Remember, for the 2026-29 block, this scheme is a one-time alternative to physical travel.
📋 VERIFY YOUR BILLS NOW!