So here is the solution ... don't go through App Store Update .. seems that it's a glitch in App Store.
Search for gmail using the "Search Button". If you already have Gmail installed, click the "update" button and it will ask for your password for App Store. once entered, it will download the Gmail Update. At least that's what I just ended up doing and it seems to be installing the new update. #Apple #Google +Google+ Helper #iOS6