Is GST Registration available to a Start-up operating in Co-work space?

GST law does not provide any prohibition for obtaining GST registration in a co-working space. The applicant can submit address proof like a sub-lease agreement along with a non-objection certificate (NOC) from the landlord to obtain GST registration.

However, GST law contains provisions for physical verification of the principal place of business and the proper officer may visit the principal place of business where it is possible that he may not verify company presence properly due to many companies working on the same premises and he may submit a negative report for physical verification to the authority and GST registration may not be granted to the company. Considering issues face by the start-up company, proper demarcation like desk number or cabin number should be there so that proper officer can easily verify the company. Further, the complete address should also carefully be mentioned in GST registration form (GST REG 01) and the same should be matched with the sub-lease agreement.

Basis the same, the authority may easily verify the business address of the company and issued a GST registration certificate.

GST registration for companies dealing in goods in a co-work space

The Authorities may not grant GST registration to a company dealing in the sale and purchase of goods considering the fact that how one can store the goods in a co-working space.

In this regard, it is advisable that a business note should be submitted by the taxpayer along with the documents while applying for the GST registration, describing the business model of the company and declaring that the taxpayer is involved in such a business that there is no requirement of space for storing the goods in the co-work premise in which he wish to avail the GST registration, so that the proper officer can understand the business model of the company and issue the GST registration for the same.

In this regard, reliance can also be place on Kerala Advance Ruling in matter of M/s Spacelence office solutions private Limited, KER/55/2019 dated 15.07.2019, Facts of the case:

The applicant is engaged in the business of sub leasing of office spaces as "co-working spaces" to their clients. The lease agreement between the applicant and landlord permit sub leasing and accordingly they obtain NOC from landlord for registering GST for the customers. The applicant provides dedicated land line number, fax number, high speed internet, air conditioning, housekeeping, pantry with drinking water, power back up, receptionist support, letter and postage handling and meeting room to the clients. In the "co-working space model" the petitioner offers dedicated distinct and identifiable space, tables and chairs to each client’s working there. Each client company is working as separate and identifiable office within the main office. These companies are maintaining their financial records in electronic form and very well accessible from the "co-working space" at all the time. The applicant requested advance ruling on the following:

Can GST registrations allowed for multiple companies from same address, provided they follow all GST rules related to "Principal place of business"? These are start-up companies in service sector, where no stock has to be maintained.

Authority Ruling:

Separate GST registration can be allowed to multiple companies functioning in a "co working space" and which provide services alone. Such companies shall upload the rental agreement with the land lord and lessee. If there is any sub-lease, then rental agreement between lessee and sub lessee should also be uploaded as proof of address of principal place of business of respective suit or desk number assigned to them. In addition to this, the applicants can upload a copy of "monthly utility bili" in connection with payment towards electricity charges, water charges or other common services availed by the respective suit or desk number.

Conclusion :

From the above discussions, it can be concluded that GST registration is available to various offices working in Co-work space, provided the proper documentation as required under law mentioning the correct GST desk or cabin number as provided in sub-lease agreement is submitted by the taxpayer at the time of filing of GST registration.

Resultantly, complete address including GST desk or cabin number would be mentioned in GST Registration form 01 of the taxpayer.

If you are also working in Co-work space and struggling to get the GST Registration, we are happy to help!

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