Revenues from online gaming surged 412 pc at Rs 6,909 crore: FM Sitharaman

New Delhi, Sep 9 (IANS) Finance Minister Nirmala Sitharaman on Monday informed that revenue from online gaming has increased 412 per cent, reaching Rs 6,909 crore in six months, from the increased levy on the sector.

Addressing a press conference after the 54th GST Council meeting, the Finance Minister said revenues of casinos have "jumped by 30 per cent".

"For casinos, revenue increased 30 per cent to Rs 214 crore over the six months," she said.

In July last year, online games, both skill-based and chance-based, were placed in the 28 per cent GST slab in the 50th GST meeting. The measure came into effect on October 1, 2023.

Earlier, skill-based games were taxed at 18 per cent. This is in addition to the tax on winnings from different gaming tournaments.

As per the income tax law, these winnings are treated as winnings from online games and taxed at 30 per cent under the head '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 come with a status report by the end of October and the decision is likely in the November GST Council meeting.

The GST Council has also agreed to form a GoM on compensation cess and slashed 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 in order to further reduce the cost of cancer treatment," 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 whether to exempt payment aggregators from paying tax on online payments.

Disclaimer: This story has not been edited by the Sakshi Post team and is auto-generated from syndicated feed.