GENERAL23 Sept 2026
Bombay HC sets aside ₹79.7 crore GST demand on Karan Johar's firms
The Bombay High Court has set aside a ₹79.7 crore GST demand on Karan Johar's Dharma Productions and Dharmatic Entertainment. The court held that a cinematographic film is not IT software, even when delivered on a hard disk or digital link. So the mode of delivery cannot decide GST classification. If you license film rights, check how your transactions are classified before the tax department does.
Key Statutory Highlights
- The Bombay High Court set aside a GST demand of over ₹79.7 crore raised on Karan Johar's two production companies, Dharma Productions and Dharmatic Entertainment.
- The court held that a cinematographic film is a passive audio-visual work, incapable of execution or interactivity, so it cannot satisfy the definition of information technology software.
- The tax department had treated the copyright licensing of films as IT software services, but the court said the mode of delivery cannot determine classification.
Actionable Advice for Taxpayers / Founders:If you license film or other content rights, review how those transactions are classified for GST and keep documents showing the nature of the rights. For your own case, it is best to confirm the position with your CA, since the outcome depends on your specific contract terms.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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