In a recent ruling, the Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) absolved BookMyShow from paying service tax on transactions made through credit card companies. The government contended that BookMyShow should be taxed on the difference between what customers paid and what cinemas received. However, the court disagreed, stating that BookMyShow acted as a collection agent for credit card company offers and didn’t retain any of the difference. This decision is a significant victory for the online ticketing industry, clarifying tax implications and potentially saving other platforms money. BookMyShow’s role as a facilitator rather than a service provider to credit card companies was pivotal in the ruling, setting a precedent for future e-commerce taxation.