Balaji Telefilms Faces ₹50.62 Crore GST Demand Post-Subsidiary Merger
Balaji Telefilms received GST demands totaling ₹50.62 Crores (₹32.58 Cr for itself, ₹18.04 Cr for erstwhile subsidiary ALT Digital) for FY 2021-22. The company considers the demands unsustainable and plans to appeal, with no cash outflow expected for pre-deposit. The orders are deemed to have no material financial impact.
The total demand of ₹50.62 Crores is substantial. However, the company's confidence in appealing and the lack of expected cash outflow reduce the immediate operational and financial impact.
The company believes the GST demands are unsustainable and plans to appeal, stating no material impact. While a significant demand exists, the company's stance and planned actions mitigate immediate negative sentiment.
Balaji Telefilms Limited has disclosed receipt of an order from the Deputy Commissioner of State Tax, Mazgaon, Mumbai, under Section 73(9) of the CGST/MGST Act, 2017, for the Financial Year 2021-22. The company received a demand of ₹32.58 Crores, comprising tax of ₹16.93 Crores, interest of ₹13.96 Crores, and penalty of ₹1.69 Crores, allegedly due to ineligible/excess Input Tax Credit.
Furthermore, its erstwhile subsidiary, ALT Digital Media Entertainment Limited (merged with Balaji Telefilms effective June 20, 2025), also received a similar order dated December 09, 2025, from the Deputy Commissioner of State Tax, Vile Parle East, Mumbai, for FY 2021-22. This order raises a demand of ₹18.04 Crores, including tax of ₹9.54 Crores, interest of ₹7.22 Crores, and penalty of ₹1.28 Crores.
The company believes these demands are not legally sustainable, citing retrospective amendments to Section 16(2)(c) of the CGST Act and fulfillment of all conditions for availing Input Tax Credit (ITC). A significant portion of the demand relates to prior year credits legitimately claimed within the statutory time limit.
Balaji Telefilms is in the process of filing appeals with the Appellate Authority. The required pre-deposit will be discharged using available ITC balance, resulting in no cash outflow. The company states that these orders do not have a material impact on its financial, operational, or other activities. The information will be available on the company's website, www.balajitelefilms.com.
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Balaji Telefilms Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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