When the film was launched/planned it was titled "Gautam Govinda Gopalam". Gopala was for Vijay Arora's character. The distributors insisted to the producer that the title be changed to just " Gauatam Govinda" because Vijay Arora's declining box office pull. Vijay Arora insisted the producer changed his mind due to numerology reasons.
Anil Kapoor was a regular visitor on the sets. He was attempting to get any role in the film.
Subhash Ghai stated "I have tasted success, I have tasted failure and i know every one and everything changes around you when failure occurs. After Vishwanath, the party was over. Gautam Govinda, Karz and Krodhi. Gautam Govinda and Krodhi took 3 years to make. With these two flops, everybody around me changed their tune. I never could forget how people turned on me. Even Shatrughan Sinha changed his tune. He stated that Subhash Ghai needs to learn the difference between a role and a actor. He does'nt know what is commercial and what is art. He said so many things like he understood commercial cinema. He forgot it was this Subhash Ghai that gave him Kalicharan and Vishwanath. That was when we decided to not work together again. The role of Ram in Ram Lakhan could have been done by Shatrughan. I decided to make Karz on a dancing subject. I made Karz with a vengeance. But then I make all my subjects with a vengeance. I spoke to Laxmikant Pyarelal to compose the music. They were not known for western disco music. Rahul Dev Burman would have been a better choice. But i challenged Laxmikant Pyarelal take up the film and prove they can make western music just like any one else.
Bhiku Verma was burnt during a dangerous stunt. During the bull cart stunt when the bull cart caught fire, Bhikoo Verma suffered 3rd degree burns.
After the super success of Vishwanath, this film came, than after Gautam Govinda, then came Karz.