Expectations around GST, taxation from Budget that can accelerate growth of coworking industry: Manas Mehrotra, founder of 315Work Avenue

Some of the measures that we look forward to include lower GST rate for small-scale coworking clients as this will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. Input tax credit under GST is an important issue that concerns coworking sector, said the founder.

The coworking industry has become more relevant than ever with the demand surging significantly in recent times owing to its affordable pricing options and flexible work culture. It has emerged as a pivotal force in the modern workspace landscape, that cater to diverse business needs. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming Union Budget that can further accelerate growth of this sector. Moreover, ensuring the availability of institutional finance at competitive rates is vital for the growth of the coworking sector as it would enable coworking firms to scale efficiently and making them more attractive to businesses of all sizes. We also believe that a significant push to infrastructure and single-window clearance system will help in faster establishment of coworking spaces in non-metro cities as well.

Some of the measures that we look forward to include lower GST rate for small-scale coworking clients as this will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. Input tax credit under GST is an important issue that concerns coworking sector. Hence, we expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs.  There are few other aspects too that needs attention. Typically stamp and registration duties are high and since both the landlord as well as client agreements are subject to these charges, hence, either concession in such stamp duty rates or allowing twice the duty paid as expenditure under income tax will encourage even the small agreements to get registered. An important requirement for the coworking industry has been Lower/Concessional rate of TDS which will improve the working capital. Another measure that could be announced to intensify growth of the coworking sector is a further and continued extension of tax holiday for start-ups as they would be motivated to scale up their business and enhance investment.

Coworking spaces have emerged as the defining feature of India's rapidly evolving commercial real estate market, reflecting the broader shift toward work culture, flexibility, collaboration, innovation, and sustainability. Hence, the coworking sector, is expecting continued improvement in the ease of doing business and a series of both financial and non-financial incentives which will play an important role in the growth of the industry. Coworking businesses will also continue to attract investment due to the sector's scalability and growth potential. The share of coworking in the overall leasing of flex space is set to grow further and play a pivotal role in 2025 and beyond.