GST & TCS Guidance for Tranity Partners
Last updated on April 01, 2025
Important Disclaimer: This guide provides general information about Goods and Services Tax (GST) and Tax Collected at Source (TCS) as they relate to Partners using the Tranity Platform. It is intended for informational purposes only. Tax laws are complex and subject to change, and your individual circumstances may differ. This is not tax or legal advice. Tranity cannot provide tax advice. We strongly recommend consulting with a qualified tax professional to understand your specific obligations. Tranity assumes no responsibility for your tax compliance.
This guidance should be read alongside our main Terms of Service and Payments Terms of Service. The overall calculation, timing, and processing of your Payouts are governed by the Payments Terms of Service. This document only explains how tax is handled within that payment flow.
1. Understanding GST & Its Relevance to Tranity Partners
What is GST? Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India.
Why does it apply? When you, as a Partner, provide access to your Space (library, study space, etc.) via the Tranity Platform, you are supplying a service. This supply is generally subject to GST. Tranity, as an e-commerce operator facilitating this supply, also has specific obligations under GST law.
2. GST Registration for Partners
Who Needs to Register? Generally, businesses (including individuals providing services) whose aggregate annual turnover from all sources across India exceeds a certain threshold are required to register for GST.
Current Thresholds (Subject to Change): As of the "Last Updated" date, the general threshold for mandatory GST registration for suppliers of services is INR 20 lakhs in annual turnover. However, for certain "Special Category States" and Union Territories (as defined in GST law), this threshold for services may be lower (e.g., INR 10 lakhs).
Your Responsibility: It is solely your responsibility as a Partner to determine if your total turnover from supplying services requires you to register for GST. You must consider income from all your business activities, not just through Tranity. Consult a tax professional if unsure.
How to Register: If you determine you need to register, you can do so on the official Government of India GST Portal: www.gst.gov.in. While the registration process can be done online, we recommend consulting with a tax professional to ensure all steps are completed correctly based on your specific circumstances.
GSTIN: Upon successful registration, you will receive a unique GST Identification Number (GSTIN).
3. Providing Your GSTIN to Tranity
Why is it Important? Providing your valid GSTIN to Tranity is crucial because it determines how GST collected from Members is handled and whether Tax Collected at Source (TCS) applies to you.
How to Provide/Update:
Initial Listing Creation: During the process of creating a new listing for your Space on the Tranity Platform (via the Tranity Partner app or web dashboard), you will be asked if you are registered for GST. If you select 'Yes', you will be prompted to enter your valid GSTIN.
Post-Publication Update: If you register for GST after your listing is already published, or if you need to update an existing GSTIN, you can do so by editing your listing: Go to the Listings Editor, select the relevant listing, navigate to Listing Editor > Listing Settings > Taxes. Here you can add or update your GST information, including your GSTIN.
Accuracy: Ensure the GSTIN provided is always accurate and valid.
Timing: Please provide or update your GSTIN as soon as possible. Tranity applies GST/TCS rules based on the information associated with your listing at the time of a reservation request. We cannot retrospectively adjust GST payouts or TCS deductions for past periods if the correct GSTIN was not provided earlier.
4. How Tranity Handles GST Collection from Members
Tranity collects the applicable GST from Members on the Listing Fee portion of the Total Fees. The handling of this collected GST depends on your registration status:
If You Are a GST-Registered Partner (and provided a valid GSTIN):
Tranity collects the GST from the Member.
This collected GST amount (on your Listing Fee) is included in your Payout.
You (the Partner) are then responsible for reporting this supply and remitting this GST amount to the government through your regular GST returns.
If You Are NOT GST-Registered (or did not provide a GSTIN):
Tranity collects the GST from the Member.
Tranity remits this GST amount directly to the government tax authorities on your behalf, as required for supplies made through an e-commerce operator by unregistered suppliers.
You do not receive the GST amount in your payout in this case, and you generally do not need to file GST returns if your turnover is below the threshold.
Applicable GST Rate: The GST rate applied depends on the specific nature and classification of the service you provide (e.g., renting of immovable property, access to facilities). Under current Indian GST law, services related to providing access to spaces like libraries, study areas, or co-working desks generally fall under SAC (Services Accounting Code) 9972 or similar classifications, attracting a standard GST rate of 18% (subject to change by law). However, the exact classification and rate can depend on specific circumstances and interpretations. Partners are responsible for ensuring their service is correctly classified. Tranity will apply the rate deemed appropriate based on the information available but relies on the Partner for correct service classification.
5. Tax Collected at Source (TCS) for Registered Partners
What is TCS? Under Section 52 of the CGST Act, e-commerce operators like Tranity are required to collect tax at source (TCS) on the net value of taxable supplies made through the platform by registered suppliers.
Who Does it Apply To? TCS applies only if you are a GST-Registered Partner and have provided your valid GSTIN to Tranity. It does not apply to unregistered Partners.
Current Rate (Subject to Change): The current TCS rate is 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST depending on the transaction).
How it Works:
Tranity calculates TCS on the net value of your taxable supplies (Listing Fee, excluding GST collected on it).
This TCS amount is deducted from your Payout.
Tranity deposits this collected TCS amount with the government against your GSTIN.
You can typically claim this TCS amount as a credit in your electronic cash ledger when filing your GST returns.
6. GST on Tranity's Service Fee
Tranity charges Partners a Service Fee for using the Platform. This Service Fee is subject to GST (currently 18%, subject to change). Tranity deducts both the Service Fee and the GST applicable on that Service Fee from your Payout. Tranity remits the GST collected on its own Service Fee to the tax authorities.
7. Invoices and Tax Reporting
Member Invoices: Members may request tax invoices for their reservations where applicable GST has been charged. Tranity facilitates the generation and provision of these tax invoices to Members on behalf of the Partner. Partners should ensure their GSTIN (if applicable) and business details are accurate in their Tranity account to enable correct invoice generation.
Partner Reports: Tranity will provide Partners with reports summarizing transactions, collected fees, GST amounts handled, and TCS deducted (where applicable) to assist with tax reconciliation.
Partner Responsibility: Partners are solely responsible for maintaining their own accurate financial records, filing correct GST returns (if registered), reporting income, and paying all applicable taxes (GST, income tax, etc.) on time.
8. Frequently Asked Questions (FAQs)
Q: What are the "Special Category States" and Union Territories with lower GST thresholds for services?
A: Specific States and Union Territories are designated under GST law as having a lower registration threshold (e.g., INR 10 lakhs per annum) for the supply of services compared to the general threshold (e.g., INR 20 lakhs per annum). As of the "Last Updated" date of this document, these typically include:
States: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand.
Union Territories: Jammu and Kashmir, Ladakh, Puducherry.
Note: This list and the threshold amounts are based on information available at the time of writing and are subject to change based on government notifications. Always verify the current applicable threshold for services for the specific State/UT where your service is supplied by consulting official GST resources or a tax professional.
Q: My listing is in a Special Category State/UT, but I live elsewhere. Which threshold applies?
A: Generally, the GST registration threshold is determined by the state or union territory where the service is supplied (i.e., where your Space is located). However, consult your tax advisor for confirmation based on your specific circumstances.
Q: My listing offers multiple individual seats/desks. How is GST calculated?
A: Tranity supports reservations for individual units (like seats or desks) within your space. GST is calculated based on the price set for each individual unit reserved by a Member. Ensure your listing accurately reflects the price per bookable unit (seat/desk).
Q: Where can I see the TCS deducted by Tranity?
A: If you are a registered Partner, the TCS deducted should be visible in your payout reports provided by Tranity and should also reflect against your GSTIN on the government GST portal (usually in Form GSTR-2A/2B or equivalent), which you can use to claim credit.
Q: What if I de-register from GST?
A: If you are no longer required to be registered for GST and have officially de-registered, you must update your Tranity account immediately by removing your GSTIN from the tax settings (Listing Editor > Listing Settings > Taxes). Once removed, Tranity will treat you as an unregistered Partner and handle GST collection and remittance accordingly for future reservations.
9. Need More Help?
For questions about using the Tranity Platform or finding your tax settings, please contact Tranity Support: www.tranity.in/support
For advice on your specific GST registration, filing, or other tax obligations, please consult a qualified tax professional in India.