Short answer: Several Indian states now partly reimburse GCC capital spending, and in some of them office fit-out items like furniture, fixtures, HVAC and electrical work can be part of that claim. Gujarat's new operational guidelines, reported on 3 October 2026, give a two-year window from the start of operations to claim eligible capex through a single online portal. So how you contract, invoice and record your fit-out now affects how much you can recover later.
This guide is for founders, India heads, finance controllers and real estate teams setting up or expanding a Global Capability Centre (GCC). It explains what the main state policies cover, where fit-out fits in, and how to plan your interior project so the paperwork holds up when you claim. It is general information, not tax or legal advice. Always confirm eligibility with the state nodal agency and your chartered accountant. For the wider picture on GCC interiors, see our page on GCC office interiors.
Why this matters in October 2026
Two things happened in the first days of October 2026. First, Gujarat released Operational Guidelines 1.0 for its GCC Policy 2025–30. They explain how GCCs get recognised, how they apply for incentives and how claims get paid. Second, industry leasing reports for July–September came out. They showed that India's main office markets had leased more than 50 million sq ft of Grade A space in the first nine months of 2026, with GCCs among the biggest sources of demand and Hyderabad growing fastest.
Taken together, this tells you something practical. Many companies are signing leases right now and will spend crores on fit-out over the next two quarters. Much of that spend could qualify for a state incentive. But only if it is documented the way the scheme asks.
Key terms, defined
- GCC (Global Capability Centre): An offshore unit owned by a multinational that does technology, engineering, finance, analytics or other work for its parent company.
- Capex assistance: A partial refund of eligible capital spending. It is usually paid in instalments after you start operating.
- Opex assistance: A partial refund of recurring costs such as rent, bandwidth, cloud or electricity, usually for a fixed number of years.
- GFCI (Gross Fixed Capital Investment): The total value of fixed assets you invest in, used to place a unit in an incentive category.
- Fit-out: The interior work that turns a bare or warm-shell floor into a working office: partitions, ceilings, flooring, furniture, HVAC, electrical, fire systems, lighting and IT cabling.
What the main state GCC policies offer
The table below summarises headline provisions from published policy documents and newspaper reports. Percentages and caps change by category and zone, so treat it as a starting point and not a substitute for the notified text.
| State / policy | Capex support | Rent / opex support | Entry threshold (headline) |
|---|---|---|---|
| Gujarat GCC Policy 2025–30 | Up to 20% on building and fixed assets; up to 30% on computers, software and hardware; ceiling ₹50 crore (Category I) or ₹200 crore (mega); paid in 20 quarterly instalments | Up to 15% of eligible opex, up to ₹20 crore/year (Category I) for five years; lease rental counted up to ₹50 per sq ft per month or actual, whichever is lower | Minimum 50 employees on payroll |
| Uttar Pradesh GCC Policy 2024 | 25% of eligible investment, capped at ₹10 crore (Level-I) or ₹25 crore (Advanced), paid over seven annual instalments | 20% reimbursement of eligible operating costs, including office rent, bandwidth and electricity, for five years | In Gautam Buddha Nagar/Ghaziabad: ₹20 crore investment or 200 employees (Level-I) |
| Maharashtra GCC Policy 2025 | 20% of eligible investment (reported as plant and machinery only), paid over five years | Rent support of 10% or 20% depending on zone, for up to five years, with caps by size | Smallest tier: ₹50–100 crore investment or 100–250 employees |
Karnataka, Telangana, Tamil Nadu, Madhya Pradesh and others also have GCC or IT policies with their own incentives. If you are still choosing a city, compare incentives alongside talent, rent and commute.
Where office fit-out fits in Gujarat
According to newspaper reports on the new guidelines, eligible capex includes construction or purchase of buildings; computers, software and networking hardware; and fixed assets such as furniture, fixtures, HVAC, electrical equipment and machinery. Land is excluded. Stamp duty, registration fees and renewable energy equipment are allowed only under conditions. Claims go through the Integrated Incentive Management Portal run by the Directorate of ICT and e-Governance. Firms have two years from the start of commercial operations to claim eligible capex.
The policy document also sets a cap on construction cost: ₹3,000 per sq ft of built-up area, with 60 sq ft of built-up area allowed per employee. How these caps apply to leased-office fit-out rather than a building you construct is something to confirm with the department. If they do apply, they shape your budget in two ways:
- Area: A 300-person GCC would have about 18,000 sq ft of eligible area (300 × 60), even if it leases 22,000 sq ft for growth.
- Rate: Any spend above ₹3,000 per sq ft may not be counted. For reference, Officea Design & Build's published 2026 rates (per sq ft, GST extra) are ₹1,800 Basic, ₹2,200 Medium, ₹2,600 Good and ₹4,500 High end. A High-end spec would therefore go over the cap on part of the spend. See office fit-out cost in India for what each tier covers.
Uttar Pradesh and Maharashtra: read the asset definitions closely
UP's capital subsidy is on "eligible investment". Reported summaries of Maharashtra's policy limit capital subsidy to plant and machinery. Whether interior items such as partitions, ceilings and loose furniture count depends on the definitions in the notified policy and its guidelines. HVAC, electrical, UPS and IT infrastructure are more likely to be treated as plant and machinery than decorative finishes. Clear this point with your advisor before you finalise the fit-out specification, not after.
A worked example (indicative only)
Suppose a 300-seat GCC leases 20,000 sq ft in Ahmedabad or Gandhinagar and builds it at a "Good" specification of ₹2,600 per sq ft (GST extra).
| Item | Figure |
|---|---|
| Fit-out value at ₹2,600 × 20,000 sq ft | ₹5.20 crore + GST |
| Eligible area if the 60 sq ft/employee rule applies (300 × 60) | 18,000 sq ft |
| Eligible fit-out value at ₹2,600 × 18,000 | ₹4.68 crore |
| Assistance at up to 20% | Up to ₹93.6 lakh, paid in 20 quarterly instalments |
This is arithmetic to show how the caps interact, not a promise of any amount. The actual claim depends on category, approvals, what the department accepts as eligible, and whether GST is included or excluded from the eligible base.
How to plan your fit-out so the claim holds up
Incentives are paid against paperwork. Here is what usually makes the difference between a smooth claim and a stuck one.
1. Ask for an itemised BOQ even on a turnkey contract
A single design-and-build contract keeps accountability in one place, but a lump-sum invoice reading "office interiors, turnkey" is hard to map to eligible asset classes. Ask for a bill of quantities (BOQ) split into clear heads: civil and partitions, ceilings and flooring, loose and modular furniture, HVAC, electrical and lighting, fire detection and suppression, IT and networking, and AV. Officea Design & Build, for example, delivers turnkey projects under one contract while keeping the BOQ itemised, so finance teams can tag each line to the right asset class.
2. Invoice the right entity, at the right address
Invoices should be in the name of the GCC entity applying for the incentive, with its GSTIN and the project site address. Mismatches between the applicant entity, the lease holder and the invoiced party are a common reason claims slow down.
3. Keep a fixed asset register from day one
Tag furniture, AHUs, VRF units, UPS, DG sets and network equipment with asset IDs, serial numbers and locations. Your CA will need this to certify investment, and auditors will ask for it later.
4. Pay through banking channels and keep the trail
Gujarat's guidelines call for CA-certified investment documents, GST registration, board resolutions, service agreements with the parent, a certified project report and employee details. Payment proof that matches each invoice makes certification much faster.
5. Watch the calendar
With a two-year capex window in Gujarat, and instalment-based payouts elsewhere, the date you declare commercial operations matters. Try to have the main fit-out invoiced and paid before or soon after you start operating. Leaving a large final bill hanging for months can push it outside the window.
6. Phase the build to match headcount
If eligible area is linked to headcount, fitting out the whole floor on day one for a team that will take two years to hire may not earn you more incentive. A phased fit-out, with shell areas finished later, can match spending to hiring and to claim windows.
Checklist for CFOs and real estate heads
- Get the state's notified policy and operational guidelines, not only press summaries.
- Confirm in writing which fit-out heads count as eligible capex.
- Check for area or rate caps (such as ₹3,000 per sq ft and 60 sq ft per employee in Gujarat) before you fix the specification.
- Write itemised BOQ and invoicing terms into the fit-out contract.
- Agree who prepares asset tagging and as-built documents at handover.
- Line up commercial-operations dates with fit-out completion and payment milestones.
- Budget for the incentive as a later cash inflow, not a reduction in upfront cost.
Our office fit-out checklist for CFOs covers the cost and schedule checks to run before signing, during construction and at handover.
How Officea can help
Officea Design & Build delivers turnkey office fit-outs across India under one contract, with design, civil, MEP and furniture handled by one accountable team. For GCC projects, that means one BOQ, one schedule and one set of handover documents (as-built drawings, warranties and an itemised asset list) that your finance team can hand to the CA. We are not incentive consultants and do not advise on eligibility, but we can structure the fit-out paperwork to match what your advisor needs. Read more about our turnkey office fit-out service.
If you are planning a GCC office, you can request a free site visit and a layout and budget estimate through the enquiry form, on WhatsApp or by phone on +91 98711 11446.
Frequently asked questions
Can office fit-out costs be claimed under a state GCC policy?
Often in part, depending on the state. Gujarat's operational guidelines, as reported, list furniture, fixtures, HVAC and electrical equipment among eligible fixed assets. Other states define eligible investment differently, so confirm with the nodal agency before you finalise your specification.
What is the time limit to claim capex under Gujarat's GCC policy?
According to reports on Operational Guidelines 1.0, firms have two years from the start of commercial operations to claim eligible capital expenditure. Claims are filed through the Integrated Incentive Management Portal. Plan fit-out invoicing and payment so they fall inside that window.
Does Gujarat cap the fit-out cost it will count?
The policy sets a construction cost cap of ₹3,000 per sq ft of built-up area and allows 60 sq ft of built-up area per employee. How this applies to leased-office fit-out should be confirmed with the department. If it applies, spending above the cap, or area above the headcount allowance, may not be counted.
Does Uttar Pradesh's GCC policy help with office rent in Noida?
Yes. Reported summaries of the UP GCC Policy 2024 include a 20% reimbursement of eligible operating costs, including office rent, bandwidth and electricity, for five years. Separate investment or headcount thresholds apply in Gautam Buddha Nagar and Ghaziabad.
Should a GCC choose a turnkey or design-and-build contractor for incentive-linked projects?
A single-contract model makes coordination and handover documents simpler, which helps claims. The key is to insist on an itemised BOQ and invoices split by asset class, so one contract still produces claim-ready paperwork.
How much does a GCC office fit-out cost per sq ft in India?
It depends on specification and scope. As a reference, Officea's published 2026 rates are ₹1,800 (Basic), ₹2,200 (Medium), ₹2,600 (Good) and ₹4,500 (High end) per sq ft, GST extra. A site visit and layout are needed for a firm estimate.
Sources
- Gujarat's new GCC rules: single portal for incentives, two-year window (The Hans India / IANS, 3 Oct 2026): https://www.thehansindia.com/news/national/gujarats-new-gcc-rules-single-portal-for-incentives-two-year-window-for-eligible-investment-1128435
- Gujarat Global Capability Center (GCC) Policy 2025–30, policy document (GIFT City): https://api.giftgujarat.in/public/GCC_Policy.pdf
- UP GCC Policy 2024 (Invest UP, Government of Uttar Pradesh): https://invest.up.gov.in/up-gcc-policy-2024/
- Uttar Pradesh GCC Policy 2024: key features, incentives and eligibility (Business Standard, Sept 2026): https://www.business-standard.com/economy/uttar-pradesh/uttar-pradesh-global-capability-centres-policy-2024-key-features-incentives-and-eligibility-126092100300_1.html
- Incentives under Maharashtra GCC Policy 2025 (TaxGuru): https://taxguru.in/finance/incentives-maharashtra-global-capability-centre-gcc-policy-2025.html
- Officea 2026 rate card (llms.txt): https://officea.in/llms.txt