GST Registration for Businesses in Coworking Spaces: A fatiguing Quest
In 2019, Spacelance Office Solutions , a coworking operator from Kochi, filed an application with the Kerala Authority of Advance Ruling, GST Department. They sought an advance ruling on whether separate GST registration could be allowed for multiple companies operating from the same address in a coworking space.
The authority ruled that separate GST registration can indeed be allowed for multiple companies in a coworking space. However, the companies must upload the rental agreement with the landlord and lessee. In the case of subleasing, the rental agreement between the lessee and sublessee should also be uploaded as proof of address for the principal place of business.
The ruling was comprehensive and did give a heads up? for businesses operating from coworking spaces to get GST registration. However, the plethora of registration denials didn’t come to a halt. To prevent companies from misusing the coworking system for solely obtaining GST registration, the authorities implemented stringent documentation requirements, including verified leases and approvals from the property owners.
MILAN MEHTA , regional manager at Avanta Business Centre Pvt. Ltd. , explained that obtaining a NOC from the direct owner of the building can be difficult, and the electricity bill often comes under the name of the facility provider rather than the party mentioned on the rental agreement leading to rejection of GST registration applications.
领英推荐
While these measures are necessary to prevent misuse, they present a tedious process for coworking spaces and their clients. Coworking operators and tax experts have appealed to the government for simplified GST registration for businesses operating in shared office spaces, but according to our knowledge, there has been no reply, yet a response has yet to be. Nevertheless, this is an exciting development to watch for, and we recommend following our Linkedin page to be updated about all the latest happenings in the #coworking industry.
Until then...
Greetings From GoFinx.com Excited to connect with you all ! At GoFinx, we are building *BazaarX.CO - Amazon of Services* We're on a mission to transform service landscapes, offering tailored solutions across vertical. Let's be a good clients, partners or advisors to each other & shape a prosperous future together!. App Link - https://play.google.com/store/apps/details?id=com.gofinx.app GST Registration Only @499/- Contact @83294555277 Limited offer !!