# 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
- Title: Bombay High Court Rules Film Not IT Software Under GST
- Summary: 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…
- Keywords: cinematographic film, gst, karan johar, dharma productions, dharmatic entertainment, bombay high court, services accounting code, sac 997332, sac 998340, film licensing, intellectual property rights, gst rates
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/media/entertainment/cinematographic-film-not-it-software-under-gst-hc-quashes-rs-79-cr-tax-demand-on-karan-johar-firms/articleshow/134431943.cms
- Author: PTI
- Published: 2026-09-23T10:21:00+00:00
- Read time: 1 min
- Topics: cinematographic film, gst, karan johar, dharma productions, dharmatic entertainment, bombay high court, services accounting code, sac 997332, sac 998340, film licensing, intellectual property rights, gst rates
## 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.
## Key takeaway

Bombay High Court clarifies cinematographic films are not IT software under GST law