From The Economic Times · PTI · · 50s
Bombay High Court Rules Film Not IT Software Under GST
Bombay High Court quashes Rs 79 cr GST tax demand on Karan Johar film firms
In brief
Bombay High Court quashes Rs 79 cr GST tax demand on Karan Johar film firms Bombay High Court clarifies cinematographic films are not IT software under GST law Originally reported by The Economic Times.
GST Classification Clarified
Bombay High Court ruled cinematographic films are not IT software under GST law regardless of delivery method.
“There is nothing on record to show how a cinematographic film could satisfy the statutory definition of information technology software.”
Tax Demand Quashed
Court set aside Rs 79.7 crore tax demand from state tax department for 2017-2021 period.
Delivery Method Irrelevant
Whether films are delivered via hard disks or digital links does not affect GST classification.
Tax Authority Misclassification
Tax authorities incorrectly classified film licensing as IT software services under SAC 998340.
Correct Classification Applied
Firms correctly used SAC 997332 for film intellectual property licensing at 12% GST rate.
Here's the gist
Bombay High Court clarifies cinematographic films are not IT software under GST law
