Finance Minister Nirmala Sitharaman on Monday informed that revenue from online gaming has increased 412 percent, reaching ₹6,909 crore in six months, due to the increased levy on the sector.
Addressing a press conference after the 54th GST Council meeting, the Finance Minister said casino revenues have “jumped by 30 per cent.” “For casinos, revenue increased 30 per cent to ₹214 crore over the six months,” she said.
In July last year, the 50th GST meeting placed online games, both skill-based and chance-based, in the 28 percent GST slab. The measure came into effect on October 1, 2023. Earlier, skill-based games were taxed at 18 percent.
This is in addition to the tax on winnings from different gaming tournaments. Under income tax law, these winnings are treated as revenue from online games and taxed at 30 percent under the heading ‘Income from other Sources’.
The GoM on GST rate rationalisation will hold a meeting on September 23, informed FM Sitharaman.
The GoM on health insurance premium GST is likely to include a status report by the end of October and the decision will likely be made at the November GST Council meeting.
The GST Council has also agreed to form a GoM on compensation cess and slashed the tax on cancer drugs from 12 per cent to 5 per cent. “GST rates on cancer drugs are also being brought down.
It’s being reduced from 12 per cent to 5 per cent to reduce the cost of cancer treatment further,” said the Finance Minister. The GST on selected snacks has also been reduced from 18 per cent to 12 per cent.
Revenue Secretary Sanjay Malhotra said the Council did not discuss exempting payment aggregators from paying tax on online payments.
This story is based on an IANS wire feed.
Subscribe to our Telegram, WhatsApp, and Instagram channels and get the best stories of the day delivered instantly.