Finance Minister Nirmala Sitharaman announced on Monday that revenue from online gaming has surged by 412%, reaching Rs 6,909 crore in six months due to an increased levy on the sector. Sitharaman revealed this data during a press conference following the 54th GST Council meeting.
"Revenue from casinos has also jumped by 30%, reaching Rs 214 crore over the past six months," Sitharaman said.
In July of last year, both skill-based and chance-based online games were moved to a 28% GST slab during the 50th GST meeting. This change took effect on October 1, 2023. Previously, skill-based games were taxed at 18%, in addition to the 30% tax on winnings from various gaming tournaments, classified under ‘Income from Other Sources’ by income tax law.
Sitharaman also informed that the Group of Ministers (GoM) on GST rate rationalisation will convene on September 23. Additionally, the GoM on health insurance premium GST is expected to provide a status report by the end of October, with a decision anticipated in the November GST Council meeting.
The GST Council has agreed to form a GoM to address compensation cess and has reduced the tax on cancer drugs from 12% to 5% to lower treatment costs. "GST rates on cancer drugs are being reduced from 12% to 5% to further reduce the cost of cancer treatment," Sitharaman stated.
Moreover, the GST on selected snacks will be reduced from 18% to 12%. Revenue Secretary Sanjay Malhotra noted that the Council did not discuss whether payment aggregators should be exempt from tax on online payments.
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