How to Specify Your Primary Business Activity on the GST Portal
The GST portal introduced a feature in March 2021 allowing registered taxpayers to specify their core business activity. Users can select from manufacturer, trader, or service provider categories, with an option to change this selection later. This guide outlines the steps for both the initial selection and subsequent modification of the core business activity on the portal.
📖 2 min read read🏷️ GST Portal
In March 2021, the Goods and Services Tax (GST) portal introduced a new feature allowing taxpayers to define their primary business activity. This selection appears after logging in and can be modified later. This document outlines the process for both initially choosing and subsequently altering your core business activity.
I. Initial Selection of Core Business Activity on the GST Portal
- Access the official GST portal using your registered login details. 2. Upon successful login, a prompt will appear, asking you to choose your primary business category. The available choices include: - Manufacturer - Trader - Service Provider and others Select the relevant option by checking the corresponding radio button. 3. After making your selection, click 'Submit' to confirm.
Important Considerations:
- Each registered user can only choose one primary business activity. If your business involves multiple activities, you should select the predominant one, often determined by turnover. 2. The chosen activity can be updated later, and instructions for this process are provided further below. 3. For guidance on selecting the most suitable core business activity, refer to the following table:
| Options available | Description |
|---|---|
| Manufacturer | Defines an entity that produces new goods from raw materials, employing various tools and machinery. These products are then distributed to consumers, wholesalers, retailers, or other manufacturers. Even if a manufacturer also sells minor auxiliary goods or offers incidental services, their primary classification remains 'Manufacturer'. |
| Trader | Encompasses individuals or businesses involved in purchasing and reselling goods. This category includes wholesalers, distributors, retailers, and those operating through e-commerce platforms. |
| Service Provider or Others | Refers to any entity offering services, such as banking, goods transportation, or IT services. The 'others' sub-category covers various other business activities, including works contract services. |
II. Modifying Your Core Business Activity Selection
- Log into the GST portal with your valid credentials. 2. From your dashboard, locate and select the 'View Profile' option, typically found on the right side. 3. Under the 'Quick Links' section, choose 'Core Business Activity Status' from the presented list. 4. Choose the appropriate new core business activity. You must also provide a mandatory reason for this modification. 5. Click 'Submit' to finalize the updated selection.
Further Reading
Frequently Asked Questions
What is the primary purpose of GST in India?
The primary purpose of GST in India is to simplify the indirect tax structure by subsuming multiple central and state taxes into a single, unified tax system, thereby facilitating a common national market.
How many types of GST are there in India?
In India, there are four main types of GST: Central GST (CGST), State GST (SGST), Integrated GST (IGST), and Union Territory GST (UTGST).
What is the GST threshold for registration in India?
The GST registration threshold in India varies based on the nature of supply and the state. Generally, it is Rs. 20 lakh for goods and services (or Rs. 10 lakh for special category states), and Rs. 40 lakh for goods only (excluding special category states).
Can a business registered under the Composition Scheme issue tax invoices?
No, businesses registered under the Composition Scheme cannot issue tax invoices. Instead, they issue a 'Bill of Supply' because they are not eligible to collect GST from their customers and thus cannot pass on Input Tax Credit.
What is Input Tax Credit (ITC) under GST?
Input Tax Credit (ITC) under GST allows businesses to reduce the tax they pay on their output by the tax they have already paid on their inputs. This mechanism helps avoid the cascading effect of taxes, where tax is levied on tax at each stage of the supply chain.