Recently GST has added a new option to add the “Core Business Selection” tab on common GSTN portal. It will help the department and other stakeholder to identify the core type of a business. Taxpayer need to select from below option-
- Service Provider and Others
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.
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 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.
Some points that you need to take care-
- 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 Work Contract and Other Miscellaneous items.
- In order to understand the definitions of Manufacturer / Trader / Service Provider, you can click on “Information Button”.
- Further if you want to change it in future you can do it by navigating MY PROFILE>CORE BUSINESS ACTIVITY STATUS.