SRINAGAR: The 54th GST Council meeting on September 9, highlighted key developments in India’s taxation landscape, particularly regarding online gaming, medical health insurance, and rate rationalisation. One of the most significant outcomes was the council’s decision to defer the imposition of GST on online gaming transactions below Rs 2,000, a move anticipated by industry stakeholders. The deferment was announced by the Uttarakhand Finance Minister, providing temporary relief to the growing online gaming sector.
In her evening press conference, Union Finance Minister Nirmala Sitharaman revealed that the council had conducted a six-month review of GST levied on online gaming, casinos, and horse racing. She cited figures showcasing a dramatic 412 per cent increase in revenue from online gaming, which amounted to Rs 6,909 crore between October 2023 and March 2024. This exponential rise underscores the sector’s burgeoning contribution to the economy. Additionally, the GST revenue from casinos increased by 30 per cent over the same period, indicating sustained growth across these entertainment industries.
The council also focused on other important matters, including the formation of a new Group of Ministers (GoM) tasked with evaluating GST rate reductions for medical health insurance. This GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, is expected to submit its findings by the end of October. Sitharaman asserted the importance of a thorough review, noting that “more understanding is needed to take a well-informed decision on health insurance reforms.”
Besides, the council deliberated on the issue of cess compensation, which is set to expire in March 2026. A separate GoM will now examine how to address compensation concerns, as total cess collection has reached Rs 8.66 lakh crore.
Addressing tax complexities, the council agreed to establish a committee to clarify issues related to IGST, following a request from the Karnataka Finance Minister. Sitharaman also announced a tax exemption for funds allocated to research centres and universities affiliated with state or central governments that already enjoy income tax exemptions.
Meanwhile, Revenue Secretary Sanjay Malhotra shared additional updates, including a rate hike on car seats from 18% to 28% and a service exemption for foreign airlines’ Indian establishments importing services from their related overseas entities.
With ongoing discussions about tax relief for individuals and senior citizens, particularly through potential reductions in health insurance premiums, the GST Council’s future meetings will continue to be pivotal for policy reforms.
