The GSTN has enabled a new feature that requires the taxpayer to select one core business activity on the GST Portal.

Taxpayers are required to select their business activity only once, as – Manufacturer, wholesaler /Distributor/Retailer, service providers & others post login based on highest turnover amongst them. This can also be changed later.

Core Business Activity means which kind of business you primarily deal in.

For example, if you are a Soap manufacturer you may select ‘manufacturer’ in Core Business Selection.

One may choose any ONE of the aforesaid activity based on below criterion:

  • Manufacturing:
    • A manufacturer is a registered person produces new products from raw materials and components using tools, equipment and machines and then sells them to the consumers, wholesalers, distributors, retailers or to the other manufacturers. Further, a manufacturer may sell some more brought out items or may provide some ancillary services with his manufactured goods, but he would continue to be classified as manufacturer because it is the Primary Business Activity.
  • Trader:
    • A trader is a registered person who engages in the buying and selling of goods. Traders have been further recognised as Wholesaler or Distributor and Retailer. The Retailer includes a registered person selling goods through e-commerce operators.
  • Service Provider and Other:
    • A service provider is a registered person who provides service to a recipient of service and is neither a manufacturer nor a trader.

The Procedure to be followed- on opening GST Portal, you will see a new pop-up wherein you will have to identify your core business as either manufacturer or trader or service provider and others.

It is noteworthy that you can select only one core business activity.

In case all activities are applicable to you, kindly select your core business activity.

Others will include Works Contract and other Miscellaneous items.

Also, if you want to change it in the future you can do it by navigating MY PROFILE>CORE BUSINESS ACTIVITY STATUS.

More Under Goods and Services Tax

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