In this guide 8 sections
Published guides describe coworking as renting non-residential property at 18 per cent GST, with bundled services taxed alongside the rent. Place of supply is generally the property’s location. Fit-out credit is restricted. These are secondary sources, so confirm each point with your chartered accountant before you print an invoice.
What the sources say about the rate
A November 2024 EY report on managed workspaces states that the sector is taxed at 18 per cent GST. A TaxBuddy guide says the same for coworking. It splits the tax into 9 per cent CGST and 9 per cent SGST within one state.
Neither is the Act itself. Treat them as a starting point, then ask your accountant to confirm against the current notification.
Service code and bundled services
The TaxBuddy guide places renting of non-residential property under service code 9972, with 997212 as the more specific line. Check which code your accountant uses, because the guide itself is inconsistent about the label.
The same guide says internet, meeting rooms and similar items that are naturally bundled with the desk follow the rent. Items sold on their own, such as event hosting or a cafeteria, may be treated differently. Decide which of your products are bundled, and write that down.
CGST and SGST, or IGST
The guide says the place of supply is generally the location of the property. If your centre and the member’s billing state differ, that matters. Members registered in another state may still receive CGST and SGST if the property sits in your state.
One vendor blog we read contradicted itself on this point. It is a good reason to ask your accountant rather than copy a template.
- State of the centre and its GST registration
- State on the member’s GSTIN
- Whether the member is registered at all
- Which tax lines your invoice template prints
Credits and fit-out costs
EY explains that the law restricts input credit on works contract services and goods used to construct immovable property, which is where most fit-out spending lands. TaxBuddy notes that operators can claim credit on costs such as utilities, internet, security and software, where they link to taxable supplies.
Keep fit-out bills separate from running costs in your books. The split decides what you can claim.
Deposits, e-invoicing and records
The guide flags security deposits adjusted against rent as needing careful treatment but gives no rule. Ask your accountant how to show a deposit, a refund and any adjustment.
Both TaxBuddy and a DeskOS blog mention a 5 crore turnover threshold for e-invoicing. Thresholds change, so check the current figure on the GST portal.
Good software keeps the trail: the plan, the tax lines, the GSTIN, the credit note. It does not replace tax advice.
Put the advice to work.
Use a test copy or fictional example to turn the discussion into something your team can check.
Deposits, e-invoicing and records
Can you explain the balance from its original documents?
Select a partly settled example in “Deposits, e-invoicing and records”. Ask for the invoice, allocated receipts and remaining balance to be shown together before agreeing the opening figures.
Background reading: ERPNext: outstanding invoices
Questions to take to your accountant
Eight questions on a single sheet: rate, service code, bundled items, place of supply, deposit treatment, credit on fit-out, e-invoicing threshold and how credit notes should appear. Each question has a blank line for the answer with the date each was confirmed.
Open a blank worksheet to printQuestions owners ask
Is 18 per cent GST charged on the whole coworking invoice?
The guides we read say bundled services follow the rent at the same rate. Items sold separately may differ, so ask your accountant how to split them.
Does a member with a GSTIN in another state get IGST?
It depends on the place of supply. The guide says it is generally the property’s location, so the answer may be CGST and SGST. Confirm before you issue invoices.
Can the software decide the GST for me?
It applies the tax lines you configure and keeps the records. Classification and filing remain your accountant’s call.
Do day passes carry the same tax?
The sources do not address day passes. Ask your accountant, and record the answer in the plan setup.
Sources
- EY: GST on managed workspace services (November 2024) — verified 8 Nov 2026
- TaxBuddy: GST on co-working spaces and shared offices — verified 8 Nov 2026
- DeskOS: GST for coworking operators in India — verified 8 Nov 2026