Revenue from online gaming soared 412% to reach Rs 6,909 crore, according to Finance Minister Sitharaman.
Finance Minister Nirmala Sitharaman announced on Monday that revenue from online gaming has surged by 412%, reaching Rs 6,909 crore over the past six months, attributed to the increased levy on the sector.
Speaking at a press conference following the 54th GST Council meeting, Sitharaman also reported a 30% rise in casino revenues, which have reached Rs 214 crore in the same period.
Last July, the GST on online games, encompassing both skill-based and chance-based types, was raised to 28% during the 50th GST Council meeting, effective October 1, 2023. Previously, skill-based games were taxed at 18%, in addition to a 30% tax on winnings from various gaming tournaments under the Income Tax Act.
The Group of Ministers (GoM) on GST rate rationalisation will convene on September 23, according to Sitharaman. The GoM on health insurance premiums is expected to present a status report by the end of October, with decisions anticipated in the November GST Council meeting.
The GST Council has also established a GoM to review compensation cess and reduced the tax on cancer drugs from 12% to 5% to lower treatment costs. Additionally, the GST rate on selected snacks has been cut from 18% to 12%.
Revenue Secretary Sanjay Malhotra indicated that the Council did not address the issue of exempting payment aggregators from taxes on online payments.
