Selection of Core Business Activity on GSTN Portal

GST has enabled a new feature on the GST portal. At the login time, the portal prompts the user to select the “Core Business Activity.” This is required for the department to understand the nature of the business carried out by the taxpayers.

The portal prompts three options initially

Manufacture – A manufacturer is a registered person who produces new products from raw materials and components using tools, equipment, and machines and then sells them to the consumers, wholesalers, distributors, retailers, or other manufacturers. A manufacturer may sell some more brought-out items or may provide some ancillary services with his manufactured goods. Still, he would continue to be classified as a 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 –

  • Wholesaler or Distributor
  • Retailer

Retailer includes a registered person selling goods through e-commerce operators.

Service Provider & Others – A service provider is a registered person who provides service to a recipient and is neither a manufacturer nor a trader—Example Banking service, Information Technology service, works-contract service, agents, intermediaries, Goods Transport Agency etc.

The taxpayers must select only one of the Activity prompted.

The taxpayer should select one Activity which is providing him the major source of Revenue. Say, for example, if the taxpayer is having a manufacturing turnover of rupees one crore and forty lakhs and services of rupees twenty lakhs, in this case, the taxpayer has to select manufacturing as it is contributing maximum Revenue to him/her.

If the taxpayer is providing works contract services or others, then he/she can select the “Service Provider & Others.”

If the taxpayer is selecting “Trader,” then the system will prompt the taxpayer to select either of the following “Wholesaler/Distributor” or “Retailer.”

The options selected by the taxpayers can be modified at a later date by navigating through My Profile on the GST portal.