GST revenue from online gaming up 412% to Rs 6,909 cr in 6 months, says FM Sitharaman; decision on insurance deferred
The GoM on Medical & Health Insurance have been constituted, which will be be led by Bihar DY CM, Samrat Chaudhary and it will submit a report by October end at the 55th GST Council in November. Matter on health insurance to be studied as there is “more to understand in order to take a decision”, Sitharaman said.
- Sep 9, 2024,
- Updated Sep 9, 2024 7:33 PM IST
The 54th GST Council meeting on September 9 decided to set up a new GoM on GST rate reduction on medical health insurance, which will submit its report by October-end, Union Finance Minister Nirmala Sitharaman said.
Hours earlier, Uttarakhand finance minister announced that the decision to levy GST on online transactions under Rs 2,000 has been deferred.
Addressing a press conference on the meeting outcome in the evening, Sitharaman said that a six-month review of GST tax on online gaming, casinos, and horse racing was also discussed at the council. Giving out the figures, she said revenue from online gaming increased 412% at Rs 6,909 crore in six months (October 2023 until March 2024), while GST revenue from casinos has increased by 30%.
Two status reports submitted by GoM on rate rationalisation and GoM on Real Estate in the meeting.
The FM said that two GoMs have been constituted:
1) The GoM on Medical & Health Insurance have been constituted, which will be be led by Bihar DY CM, Samrat Chaudhary and it will submit a report by October end at the 55th GST Council in November to deliberate on the above report. Matter on health insurance to be studied as there is “more to understand in order to take a decision”, she said.
2) Sitharaman said they GST Council has agreed to form a GoM, which will now take it up to study and decide on how to move forward on compensation of cess which will cease after March 2026. Total cess collection at Rs 8,66,706 crore, the FM said.
The FM said that a committee under Addition secy, Revenue set up to discuss on IGST on the request from Karnataka FM on clarity pertaining to modus operandi of IGST. The Council has decided that funds given for research to state affiliated universities and research centres established by central govt, state govt, obtained income tax exemption can receive such funds with exemption on GST, she added.
Addressing the press conference, Sanjay Malhotra, Secretary of Revenue, said that the council has decided to increase rate on car seats from 18% to 28%. Exemption would apply to services imported by a foreign airline’s establishment in India from related entities abroad, he added.
Ahead of the meeting, there were talks of possible relief to individuals and senior citizens, with a likely reduction in GST on health insurance premiums.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, includes state ministers among its members. Last month, Bihar Deputy Chief Minister Samrat Chaudhary, who leads the GST Group of Ministers on rate rationalization, acknowledged ongoing discussions about changing rates for the health insurance sector.
The 54th GST Council meeting on September 9 decided to set up a new GoM on GST rate reduction on medical health insurance, which will submit its report by October-end, Union Finance Minister Nirmala Sitharaman said.
Hours earlier, Uttarakhand finance minister announced that the decision to levy GST on online transactions under Rs 2,000 has been deferred.
Addressing a press conference on the meeting outcome in the evening, Sitharaman said that a six-month review of GST tax on online gaming, casinos, and horse racing was also discussed at the council. Giving out the figures, she said revenue from online gaming increased 412% at Rs 6,909 crore in six months (October 2023 until March 2024), while GST revenue from casinos has increased by 30%.
Two status reports submitted by GoM on rate rationalisation and GoM on Real Estate in the meeting.
The FM said that two GoMs have been constituted:
1) The GoM on Medical & Health Insurance have been constituted, which will be be led by Bihar DY CM, Samrat Chaudhary and it will submit a report by October end at the 55th GST Council in November to deliberate on the above report. Matter on health insurance to be studied as there is “more to understand in order to take a decision”, she said.
2) Sitharaman said they GST Council has agreed to form a GoM, which will now take it up to study and decide on how to move forward on compensation of cess which will cease after March 2026. Total cess collection at Rs 8,66,706 crore, the FM said.
The FM said that a committee under Addition secy, Revenue set up to discuss on IGST on the request from Karnataka FM on clarity pertaining to modus operandi of IGST. The Council has decided that funds given for research to state affiliated universities and research centres established by central govt, state govt, obtained income tax exemption can receive such funds with exemption on GST, she added.
Addressing the press conference, Sanjay Malhotra, Secretary of Revenue, said that the council has decided to increase rate on car seats from 18% to 28%. Exemption would apply to services imported by a foreign airline’s establishment in India from related entities abroad, he added.
Ahead of the meeting, there were talks of possible relief to individuals and senior citizens, with a likely reduction in GST on health insurance premiums.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, includes state ministers among its members. Last month, Bihar Deputy Chief Minister Samrat Chaudhary, who leads the GST Group of Ministers on rate rationalization, acknowledged ongoing discussions about changing rates for the health insurance sector.