Bombay HC: Film Copyright Licensing Cannot Be Treated as Software for GST
The Bombay High Court Division Bench held that licensing of copyright in cinematographic films by original copyright holders must be classified under Service Accounting Code 997332, attracting 12 per cent GST, not as information technology software at 18 per cent.
The court determined that classification should be based on the essential character of the supply, not the mode of transmission. The case involved GST demands on a film producer who licensed theatrical, satellite, digital and other rights to distributors during Financial Years 2017–2018 to 2020–2021.
The petitioner had classified these licensing transactions under SAC 997332 for "Licensing services for the right to broadcast and show original films" but tax authorities had demanded differential GST. The court's ruling clarifies that such cinematographic copyright licensing is a distinct service category, separate from software licensing.
