Nature of business activities under GST registration

To correct the mistake, let's identify the correct nature of business activity for your client.

Types of Supplies Your client supplies various goods to the government through the GeM portal, including:

1. *Paper cups*: Classified as "paper products" or "food packaging material."

 2. *Clothes*: Classified as "textiles" or "apparel."

 3. *Fridges*: Classified as "electrical appliances" or "household appliances."

4. *Plastic items*: Classified as "plastic products" or "household goods."

Nature of Business Activity Based on the supplies, the correct nature of business activity for your client would be:

*1. Manufacturer/Trader* If your client is involved in manufacturing or trading these goods, they should select "Manufacturer/Trader" as the nature of business activity.

*2. Wholesaler/ Distributor* If your client is involved in wholesaling or distributing these goods, they should select "Wholesaler/Distributor" as the nature of business activity. Correcting the Mistake To correct the mistake,

your client should:

1. Log in to the GST portal.

 2. Go to the "Registration" tab.

 3. Select "Amendment" and then "Core Amendment."

 4. Update the "Nature of Business Activity" field with the correct option (Manufacturer/Trader or Wholesaler/Distributor).

 5. Save and submit the amendment request. It's essential to correct the mistake as soon as possible to avoid any compliance issues or penalties.

But he doesn't have large no of stock, he purchase and sell as per order, should I select Reatil option?

For a business that buys goods and sells them (including via GeM), the correct category is Manufacturer/Trader or Wholesaler/Distributor/Dealer, not Works Contract and not Retail.

What each option means:
- Works Contract: only for construction or civil works. Not applicable here.
- Retail: for physical shops selling directly to end consumers.
- Manufacturer/Trader or Wholesaler/Distributor: covers all buying-and-selling businesses, including those on GeM or other online platforms.

Since your client buys goods and sells them to government departments through GeM, they are acting as a trader. Select Manufacturer/Trader or Wholesaler/Distributor.

To correct this: GST portal > Services > Registration > Amendment of Registration (Core Fields) > Update nature of business activity > Submit. Core amendments need officer approval.

For more on the GST registration process and amendment steps: https://taxgarden.in/blog/gst-registration-process-india-2026