The Bombay High Court has upheld the Maharashtra government’s decision to impose entertainment duty on additional fees charged for online movie ticket bookings, treating them the same as traditional box-office purchases.
The ruling was delivered by a division bench comprising Justice M.S. Sonak and Justice Jitendra Jain.
Bombay High Court Upholds Entertainment Duty on Online Movie Ticket Booking Fees
Multiple petitions were dismissed that had challenged the constitutional validity of the seventh proviso inserted into Section 2(b) of the Maharashtra Entertainments Duty Act (MED).
The amendment includes convenience charges exceeding ₹10 per ticket under the definition of “payment for admission,” making them subject to entertainment duty.
Petitioners argued that online booking constitutes a separate service and should not be taxed under Entry 62 of List II of the Constitution, which allows states to levy taxes on entertainment.
They also alleged “colourable legislation,” claiming the amendment was a disguised attempt to control excessive convenience fees charged by cinemas.
Court Rules Legislature Has Full Authority to Decide Tax Measures
The court rejected these arguments, stating the legislature is within its rights to decide the tax measure.
It held that the convenience fee is “directly connected with buying a ticket for entertainment” and that differentiating between booking methods is unnecessary.
The bench noted, “The distinction sought to be made within the entertainment area and outside the entertainment area is superfluous,” adding that without the proviso, all such charges would still fall under the tax measure in Section 2(b)(iv).
The court observed that the power to tax entertainment under Entry 62 also covers matters “incidental thereto,” meaning online booking fees are part of the admission process.
It clarified that the Statement of Objects and Reasons—mentioning the aim to curb excessive fees—does not affect the amendment’s validity.
As a result of this decision, cinema owners in Maharashtra must continue paying entertainment duty on online booking charges over ₹10 per ticket, the same as with traditional ticket sales.
