I don't understand why there is a seperate section for newsstand in iTunes connect. What is the point of this section? If we have free content do you still add to this section?
For your App to be part of Newsstand, you should have atlease one autorenewable in App purchase subscription. The subscription now can be either be retail or free. For your App to be Newsstand enabled, you should have a Professional or an Enterprise DPS contract and you should aim to publish in-app content frequently (either free or retail). In case you do not want to do this, do not enable newsstand. Once Newsstand is enabled for an app, it cannot be disabled in itunes connect.