Selection of Core Business Selection on GSTN Portal for Registered Taxpayers –
Recently GSTN has introduced a facility to identify core business activity from one of the below options –
A. Manufacturer
B. Trader
C. Service Provider and Others
One may choose any ONE of the aforesaid activity based on below criterion –
Meaning of Manufacturer,Trader and Service Provider
| MANUFACTURER | A manufacturer is a registered person produces new products from raw materials and components using tools, equipment’s and machines and then sells them to the consumers, wholesalers, distributors, retailers or to the other manufacturers. 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 classified as –
Retailer includes a registered person selling goods through e-commerce operators. |
| SERVICE PROVIDER AND OTHERS | A service provider is a registered person who provides service to a recipient of service and is neither a manufacturer nor a trader.
e.g. Banking service, IT service, works-contract service, agents, intermediaries, GTAs etc. |
Action to be taken:
a. Login to the GSTN Portal.
b. On prompting to select the activity, please carefully assess your business activity based on aforesaid explanation
c. In case your business activity falls under more than one activity, select core activity which has highest turnover
d. You may change the core activity later on.
NOTES:
1. You can select only one core business activity.
2. In case all activities are applicable to you, kindly select your core business activity.
3. Others will include Work Contract and Other Miscellaneous items.
4. In order to understand the definitions of Manufacturer / Trader / Service Provider, you can click on “Information Button”.
5. Further if you want to change it in future you can do it by navigating MY PROFILE>CORE BUSINESS ACTIVITY STATUS.
Update on GSTN 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. You can change the same later.
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Disclaimer: The content of this document is for general information purpose only. TaxMarvel shall not accept any liability for any decision taken based on the advice. You should carefully study the situation before taking any decision.
Author Bio
For work contract which one should I choose
Dear Sir,
We prepare and deliver food online through Swiggy and Zomato delivery apps to our Customers in Mumbai. Here companies like Swiggy & Zomato collect GST on our behalf and deposit it to our bank account along with the payment. What is a suitable option for a bussiness like this?
Thank you for this article. Please do share more information on GST to stay fully compliant with the law.
Vijay Yadav
Geeta Fast Food
You may select Service Provider since sale of food article is sale of service.
Hello Sir,
I am a Trader who sells goods to unregistered customers.
But sometimes I sell goods to Registered Firms too.
Which Option Should I select?
I am a Trader who sells goods to unregistered customers.
But sometimes I sell goods to Registered Firms too.
Which Option Should I go for?
manufacturing unit is at Gujarat & its branch is in Karnataka.which effects sales only. What option we have to select under Core Business
manufacturing unit is at Gujarat & its branch i.e. office is in Karnataka. which effects sales only What option we have select under Core Business