Core Entity Feature On GST Portal

As a one-time data collection activity, the Government has enabled the ‘Core Business’ feature on the GST portal. Taxpayers have to mandatorily update this information to navigate further on the portal. This feature is added to monitor the rising ITC related frauds and keep a check on the circulation of ITC within a company. In this article, we will help you understand:

Meaning Of Core Business Activity

In this context, ‘Core Business Activity’ refers to the kind of business a taxpayer primarily deals in. For example, if a taxpayer is manufacturing clothes, the core business activity here will be ‘Manufacturer’. The GST portal provides 3 options under ‘Core Business Activity’:

• Manufacturer
• Trader
• Service Provider and Others

How To Identify “Core Business Activity’?

As mentioned above, a Taxpayer has 3 options to select from: Manufacturer, Trader or Service Provider/Others. A Taxpayer can choose the most suitable option based on the following points:

Manufacturer

A manufacturer is a GST 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 the manufactured goods. Despite this, he would continue to be classified as a manufacturer because the manufacturing of goods is the Primary Business Activity here.

Trader

A trader is a GST registered person who engages in the buying and selling of goods. Traders can be further classified as:

• Wholesaler or Distributor
• Retailer*

*Here, a Retailer also includes a GST registered person selling goods through e-commerce operators.

Service Provider and Others

A service provider is a GST registered person who provides services to a service recipient and is neither a manufacturer nor a trader. Example: Banking service, IT service, works-contract service, agents, intermediaries, GTAs etc.

How To Update/Edit ‘Core Business Activity’ On The GST Portal?

When a user logs into the GST portal (the first time after the feature is enabled), a pop-up window appears. This prompts the user to add the ‘Core Business Activity’. Without updating the same, the user cannot navigate further. Users can view the updated ‘Nature Of Core Business Activity’ in their ‘Profile’ section. If the user wishes to change the ‘Core Business Activity Status’, here are the steps: Step 1: Log in to the GST Portal. Step 2: Visit the ‘Profile’ Page Step 3: Here, under ‘Quick Links’, select ‘Core Business Activity Status’. Step 4: Select the relevant Core Business Activity, add the reason for Change of Core Business Activity and click on ‘Submit’. Note: Certain Taxpayers are exempted from the scope of these rules. Some of them are:

• GST Practitioners,
• Online Information and Database Access or Retrieval Service (OIDAR) providers,
• TDS deductors,
• Embassies, etc.