A genuine buyer's details agree with each other. Check that the GSTIN is Active and the legal name matches the PO, that a company's MCA status is active with directors you can identify, that the delivery address matches a registered place of business, that the bank account paying you is in the same name, and that no other supplier has reported a default. FundRaksha Trust shows the GST part free.
The eight signs to check
- GSTIN is Active and the check digit is valid (GSTIN validator).
- Legal name matches the purchase order, letterhead and email signature.
- Registration is not brand new relative to the size of the order.
- Delivery address is the registered principal or additional place of business, not a transport godown or a third city.
- Company status on MCA is Active and the directors are real people you can find. See MCA master data.
- Bank account name on any advance or cheque matches the buyer.
- Email and phone belong to the business: a company domain, a number listed in the registered contacts.
- No reported defaults or a pattern of cheque bounce cases.
Common fake-buyer patterns
- Borrowed GSTIN: a real, active number belonging to another business. The name on the portal will not match the PO.
- Fresh registration, big order: a GSTIN registered weeks ago placing a large order on credit, often with urgency.
- Address diversion: goods to be delivered to a city different from the registered address.
- Look-alike names: a trade name close to a well-known company. Check the legal name and PAN type.
- Token advance, large credit: a small advance to build trust before a much larger credit order.
See fake GST number check for how cancelled and invented GSTINs show up.
Where Trust helps
The free basic check gives status, legal and trade name, registration date, constitution and nature of business. The Advance GST report (129 RP) adds registered contact details and associated people and places, which is often where an address or phone mismatch shows up, plus Aadhaar, eKYC and e-invoice signals and supplier-reported defaults. For a large order, the GST + Financial report (499 RP) adds court cases, tribunals and FIRs and the owner's credit record.
If the details do not agree, you do not need to accuse anyone. Ask for the GST registration certificate and a cancelled cheque, and sell against advance until they do.
Worked example
A Rajkot casting supplier receives a ₹7,50,000 order from "a Chennai OEM vendor", with delivery to a transport yard in Hyderabad. The GSTIN is Active and starts with 33 (Tamil Nadu), but the legal name belongs to a small proprietorship registered four months ago, and the registered places do not include Hyderabad. The supplier asks for full advance. The buyer stops responding. A five-minute check prevented a loss of the full order value.
What to do when something does not match
- Ask the buyer to explain the mismatch in writing, by email.
- Ask for the GST registration certificate and a cancelled cheque from the account that will pay.
- Speak to the owner or a director directly, on a number from the registered contacts, not only the one on the order.
- Until the answers check out, supply only against advance.
Genuine buyers usually have simple explanations, such as a new branch or a recent change of name. Buyers who go quiet at this stage have answered the question for you.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.