India has no single government list of businesses that fail to pay suppliers. To check a buyer, combine court records (cheque bounce and recovery cases), credit bureau data on loans, and supplier-reported defaults. FundRaksha Trust runs a defaulter network: suppliers report buyers who did not pay, the Trust team reviews every report, and approved reports appear in that buyer's Trust reports. It is Trust's own network, not a government list.
Where default information actually lives
| Source | What it shows | Limits |
|---|---|---|
| Court records (eCourts) | Cheque bounce complaints, recovery suits, other cases by party name | Only disputes that reached court; name searches need care |
| Credit bureaus | Loan and credit card repayment reported by lenders | Trade credit owed to suppliers is not lender data |
| GST filing record | Missing or late returns, cancelled registrations | Shows distress, not a specific unpaid invoice |
| FundRaksha Trust defaulter network | Unpaid invoices reported by suppliers, reviewed by the Trust team | Covers buyers reported by suppliers on FundRaksha |
None of these is complete alone. A buyer with a clean court record may still owe three suppliers; a buyer with a loan default may pay suppliers on time.
How the Trust defaulter network works
- A supplier reports a buyer that did not pay, with the buyer's GSTIN, the unpaid amount and the invoice date. Invoice proof speeds up approval.
- The Trust team reviews the report. False or personal disputes are rejected.
- Once approved, everyone who checks that buyer on Trust sees the warning in the Advance GST and GST + Financial reports.
- Users watching that buyer get a watchlist alert when a new report is approved.
Trust's terms prohibit using reports to settle personal disputes or pressure a business, and accounts that upload false data are removed.
Checking a buyer step by step
- Run the free GST check to confirm identity and status.
- Run the Advance GST report (129 RP) to see the filing record and any supplier-reported defaults.
- For a larger order, the GST + Financial report (499 RP) adds court cases, tribunals and FIRs and the owner's credit record.
- Add important buyers to the watchlist (99 RP per buyer per month) so you hear about new reports.
Worked example
An Indore pharma distributor is approached by a new chemist chain in Bhopal for ₹4,50,000 of stock on 45 days. The GSTIN is Active and filing is regular, but the Advance GST report shows two approved defaulter reports from other suppliers within the year. The distributor offers 15 days on a ₹1,00,000 first order. See give credit or ask for advance and, if you are owed money yourself, report a defaulter.
Reading a defaulter report fairly
One approved report does not mean a buyer never pays. It means at least one supplier, with documents the Trust team reviewed, was left unpaid. Look at how recent the report is, the amount, and whether the rest of the record agrees: missing returns, cheque bounce cases or a falling repayment record make the report more significant.
- One old report, clean record since: normal or slightly shorter terms.
- One recent report: give credit with care; ask the buyer about it.
- Several reports, or reports plus court cases: ask for advance or cash on delivery.
If you have dealt with the buyer for years without trouble, a new report is a reason to talk and to tighten terms, not necessarily to stop supplying.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.