Rental Agreement to be uploaded for Separately Registering Multi Companies providing Services in a Co-Working Space: AAR [Read Order]

Co-Working Space - GST - Taxscan

The Kerala Authority for Advance Ruling in an application filed by M/s Spacelance office Solutions Pvt ltd held that separate GST registration can be allowed to multiple companies functioning in a “co-working space” and which provide services alone. However, such companies shall upload the rental agreement with the landlord or lessee. If there is any sub-lease, then the rental agreement between lessee and sublessee should also be uploaded as proof of address of the principal place of business of respective suit or desk number assigned to them.

The applicant is engaged in the business of subleasing of office spaces as “co-working spaces” to their clients. In such a model, the petitioner offers dedicated distinct and identifiable space, tables and chairs to each clients working there. Each client company is working as a separate and identifiable office within the main office. They are maintaining their electronic financial records which are accessible all the time.

The issue before the Authority is the determination of the issue that whether GST registrations can be allowed for multiple companies (service rendering start-ups where no stock has to be maintained) from the same address, provided they follow all GST rules related to “Principal place of business”

The Bench constituting of Hon’ble Members Shri S. Anil Kumar and B.S. Thyagarajababu held that “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 landlord or lessee. If there is any sub-lease, then the rental agreement between lessee and sublessee should also be uploaded as proof of address of the 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 bill” in connection with payment towards electricity charges, water charges or other common services availed by the prospective suit or desk number.”

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