CLAIM OF LTA

[S.C. WADHWA]

Dear Expert,

There is some scheme to get benefit of LTA if we purchased goods after paying 12% GST. Whether we can also purchase goods on which GST payable @18% or more. Please give your valuable suggestions.

REGARDS,

WADHWA

[KASTURI SETHI]

Will you please elaborate your query ?

[S.C. WADHWA]

Dear Expert,

Some time I read some where that If I make purchases of goods taxable GST @12%, I will get LTA exemption for 1/3rd of purchase amount or LTA amount received which ever is less. Pl confirm whether the said scheme is available for FY 2020-21.

REGARDS,

WADHWA

[KASTURI SETHI]

Pl. go to this weblink Reply to both questions are available in detail.

https://cleartax.in/s/claim-lta-exemption-cash-voucher-scheme-fy-2020-21

[ABHISHEK TRIPATHI]

Dear Sh. SC Wadhwa Ji,

Have advised a client (CG Employee) regarding the scheme. I remember that the scheme says anything above 12% GST is fine and paid via net banking/upi etc. (basically not in cash). If you buy something paying 12% + GST, it is fine. But the dates are gone right, last date of availing the scheme was March 31, 2021.

[Ganeshan Kalyani]

I read the article on the link given by Sri Kasturi Sir. According to the write-up the scheme was available on the purchase made between 12th October 2020- 31st March 2021.

AI Summary

LTA exemption scheme permits purchases taxed above minimum GST rate and non-cash payments to qualify for benefit. Discussion states that the cash voucher LTA exemption applied where purchases bore GST at or above a specified rate and were paid by non-cash methods; the exemptible amount was described as one-third of the purchase or the LTA received, whichever is less, and the scheme applied only to purchases within the stated window ending in March 2021.