Budget 2024: Coworking sector seeks lower GST, infra boost, tax incentives from Finance Minister

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Also Read: Budget 2024: Industry status, more tax deductions, affordable housing boost among key expectations of real estate sector Among key measures sought by the coworking industry include lower GST rate for small-scale clients which is expected to help the 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. “The salary upper limit of ₹25,000 could be enhanced to ₹40,000 and timeline from 3 years to 5 years to enable start-ups/coworking entities to enjoy the benefit of Section 80JJAA as these industries are generating a greater volume of employment," said Manas Mehrotra, Founder, 315Work Avenue.

Moreover, the ambiguity regarding GST on the reimbursement of electricity charges could be cleared as utility charges are coworking entities’ significant expenditure and GST exemption on such expenditure will contribute to better cash-flow management, he noted. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Mehrotra further expects the Union Budget to enable coworking firms to claim input tax 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.

“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," according to Mehrotra. Apart from these, the coworking