{"id":12108,"date":"2021-05-17T17:03:01","date_gmt":"2021-05-17T11:33:01","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=12108"},"modified":"2023-07-12T18:30:49","modified_gmt":"2023-07-12T13:00:49","slug":"what-is-core-business-activity-in-gst","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/","title":{"rendered":"Core business activity in GST?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e82f8ae75cc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e82f8ae75cc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#core_business_activity_in_GST\" title=\"core business activity in GST\">core business activity in GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#%E2%80%9Ccore_business%E2%80%9D_category_can_be\" title=\"&#8220;core business&#8221; category can be\u00a0\">&#8220;core business&#8221; category can be\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#Exemptions_for_core_business_activity_are_available\" title=\"Exemptions for core business activity are available \">Exemptions for core business activity are available <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#selection_of_core_business_activity\" title=\"selection of core business activity \">selection of core business activity <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#The_feature_enables_LUT_filing_on_the_GST_Portal\" title=\"The feature enables LUT filing on the GST Portal.\">The feature enables LUT filing on the GST Portal.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#change_in_core_business_activity\" title=\"change in core business activity\">change in core business activity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/#Reason_for_implementation_of_core_business_activity\" title=\"Reason for implementation of core business activity\">Reason for implementation of core business activity<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12109\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST.jpg\" alt=\"WHAT IS CORE BUSINESS ACTIVITY IN GST?\" width=\"960\" height=\"540\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST.jpg 960w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST-768x432.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/WHAT-IS-CORE-BUSINESS-ACTIVITY-IN-GST-800x450.jpg 800w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/a><\/p>\n<p>A new feature &#8220;core business activity&#8221; is introduced in <a href=\"https:\/\/www.caindelhiindia.com\/blog\/2286\/\">GSTN<\/a>. By using this option, a taxpayer needs to select his one core business activity on the GST Portal. Core business activity means the business your primary business that you need to select.<\/p>\n<p>Let\u2019s say, if you are a trader then you may select the \u201ctrader\u201d category in the Core Business Selection.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"core_business_activity_in_GST\"><\/span><span style=\"color: #000080;\"><strong><em><u>core business activity in GST<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>core business activity under GST is the main or essential activity that is carried out as a major business.<\/p>\n<p>even if you are engaged in various types of activities, you have to select any one major type of activity that is your core business. This can be identified on the basis of its turnover.<\/p>\n<p>Let\u2019s say, you are a manufacturer of textiles and also doing a trading activity of chemicals. Suppose your turnover of the manufacturing business is<strong>\u00a0<\/strong>2 crores. whereas the trading turnover is only\u00a01 crore<\/p>\n<p>per year. Therefore, in that situation, you have to choose as a\u00a0manufacturer as manufacturing is your core business activity.<\/p>\n<p><iframe loading=\"lazy\" title=\"What is GST | GST \u0915\u094d\u092f\u093e \u0939\u0948 | Types of GST Registration | GST Return | GST Registration Process\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/WRnOU8xORgw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<p><em><u><strong>Read more about<\/strong>\u00a0<\/u><strong><a href=\"https:\/\/carajput.com\/blog\/itc-on-marketing-expense-sales-promotional-schemes\/\">ITC on Marketing Expenses\/Sales Promotion Scheme<\/a>\u00a0<\/strong><\/em><\/p>\n<p><strong><em><u>Read more about:<\/u><\/em><\/strong><u> <\/u><strong><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties &amp; Appeals<\/a><\/em><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"%E2%80%9Ccore_business%E2%80%9D_category_can_be\"><\/span><strong><em><u><span style=\"color: #000080;\">&#8220;core business&#8221; category can be\u00a0<\/span><\/u><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>3 options are available Manufacturer, Trader, Service Provider, and Other-<\/p>\n<ol>\n<li>Manufacturer- A manufacturer is those persons who by using the raw materials and components produce the new products using equipment and sell them to the distributors, retailers, wholesalers or others.<\/li>\n<li>Trader- A trader is persons who only deal in the buying and selling of goods. They can be Wholesaler or Distributor and Retailer.<\/li>\n<li>Service Provider and Other- A service provider is those people who provide services to the recipient<\/li>\n<li>Others- it will consist of activities like work contracts and other miscellaneous items.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Exemptions_for_core_business_activity_are_available\"><\/span><span style=\"color: #000080;\"><strong><em><u>Exemptions for core business activity are available <\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>GST Practitioners<\/li>\n<li>OIDAR<\/li>\n<li>embassies<\/li>\n<li>TDS deductors etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"selection_of_core_business_activity\"><\/span><strong><em><u><span style=\"color: #000080;\">selection of core business activity<\/span> <\/u><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>log in GST portal.<\/li>\n<li>Select your core business activity out of the following option<\/li>\n<\/ol>\n<ul>\n<li>Manufacturer<\/li>\n<li>Trader<\/li>\n<li>Service provider and others<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/CORE-BUSINESS-ACTIVITY-IN-GST.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-12110\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/CORE-BUSINESS-ACTIVITY-IN-GST.jpg\" alt=\"\" width=\"833\" height=\"497\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/CORE-BUSINESS-ACTIVITY-IN-GST.jpg 689w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/CORE-BUSINESS-ACTIVITY-IN-GST-300x179.jpg 300w\" sizes=\"(max-width: 833px) 100vw, 833px\" \/><\/a><\/p>\n<p>3. Select the submit option after the selection of core business activity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_feature_enables_LUT_filing_on_the_GST_Portal\"><\/span><span style=\"color: #000080;\">The feature enables LUT filing on the GST Portal.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Letters of undertaking for the FY 2021-2022 can now be provided in the GSTN portal, as the new functionality has been activated for all taxpayers, and this has been done for taxpayer convenience.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"change_in_core_business_activity\"><\/span><span style=\"color: #000080;\"><strong><em><u>change in core business activity<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If a taxpayer selects any core business by mistake then he can change his core business activity by following the simple step mentioned below \u2013<\/p>\n<ol>\n<li>The first step is to go to my profile<\/li>\n<li>Then select the core business status option after selecting his profile.<\/li>\n<li>After that option for changing the core business activity is shown. we can change the core business activity at them by giving a reason up to 1000 words.<\/li>\n<li>After that, we just need to click submit button.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Reason_for_implementation_of_core_business_activity\"><\/span><span style=\"color: #000080;\">Reason for implementation of <strong><em><u>core business activity<\/u><\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>When an entity acknowledges its core business activity, tax authorities can encounter it if it raises high-value invoices for unrelated services.<\/li>\n<li>A GSTN spokesperson says the idea behind the new feature is to check the practice of circulation of ITC within a company.<\/li>\n<li>&#8220;Typically, a manufacturer sells to its sister company, which claims to be in the trading business, and receives services from another sister concern, which claims to be in the provision of a specific service, so that the ITC is kept circulating within the group.&#8221;<\/li>\n<li>The government has introduced a countrywide ITC crackdown on fake bills and firms. As per official sources, the crackdown on bogus firms reduced the number of registered entities with GSTN.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A new feature &#8220;core business activity&#8221; is introduced in GSTN. By using this option, a taxpayer needs to select his one core business activity on the GST Portal. Core business activity means the business your primary business that you need to select. Let\u2019s say, if you are a trader then you may select the \u201ctrader\u201d &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[9902],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12108"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=12108"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12108\/revisions"}],"predecessor-version":[{"id":25017,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12108\/revisions\/25017"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=12108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=12108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=12108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}