Run seven checks: (1) validate the GSTIN and match the name, (2) read the GST filing record, (3) for companies, read the MCA master data, (4) search court cases, (5) check the owner's or company's credit record with consent, (6) look for defaults reported by other suppliers, (7) speak to one reference. FundRaksha Trust runs checks 1, 2, 4, 5 and 6 in one report and suggests credit terms.
The seven checks, in order
- GSTIN and name. Check the format with the GSTIN validator, then confirm on the GST portal or the free Trust check that it is Active and that the legal or trade name matches the purchase order.
- Filing record. Look for regular GSTR-1 and GSTR-3B. Gaps of several months are an early sign of cash trouble. See how to check a GST number is active.
- MCA data (companies and LLPs). Status, date of incorporation and directors. See MCA master data.
- Court cases. Cheque bounce complaints, recovery suits, insolvency petitions.
- Credit record. The owner's credit score and loan repayment, or the company's credit report.
- Supplier-reported defaults. Has anyone else been left unpaid?
- One reference. Call an existing supplier of the buyer, not one they nominate.
What each check can and cannot tell you
| Check | Catches | Misses |
|---|---|---|
| GSTIN and name | Fake, cancelled or borrowed GSTINs | A genuine business that pays badly |
| Filing record | Businesses that have stopped trading or are short of cash | Seasonal gaps in quarterly filers |
| MCA data | Struck-off companies, very new companies, director changes | Proprietorships and partnerships |
| Court cases | A pattern of cheque bounces or recovery suits | Disputes still at notice stage |
| Credit record | Loan defaults and recent delays | Trade credit owed to suppliers |
| Supplier defaults | Trade credit already unpaid | Buyers no supplier has reported yet |
No single check is enough. The point of running them together is that each covers what the others miss.
Doing it in one report
FundRaksha Trust combines most of these. Enter the GSTIN and the basic check is free. The GST + Financial report (499 RP) adds the owner's credit score and loan repayment record, promoter or director financials, court cases, tribunals and FIRs, and the defaults other suppliers have reported. The owner confirms consent first and Trust saves the date, time and device. If no mobile number is available, the report finishes with court cases only.
| Trust report | Price | What it shows |
|---|---|---|
| Basic GST check | Free, no sign-up | GST status, legal and trade name, registration date, constitution and nature of business |
| Advance GST report | 129 RP | GST health score and compliance risk, filing record with delays and missing returns, registered contacts, associated people and places, Aadhaar, eKYC and e-invoice signals, defaults reported by other suppliers |
| GST + Financial report | 499 RP, charged when ready | Everything above plus the owner's credit score and loan repayment record, promoter or director financials, court cases, tribunals and FIRs, and a give-credit, caution or avoid decision |
Turning the checks into terms
Trust ends with one of three outcomes. Safe to give credit: normal terms, for example 30 to 45 days. Give credit with care: a lower limit and short terms, or part payment in advance. Avoid credit: ask for advance payment or cash on delivery. Trust describes this as guidance; you make the final call.
Worked example: a Coimbatore motor maker receives a first order of ₹3,80,000 on 45 days from a dealer in Nagpur. The GSTIN is Active, but the filing record shows GSTR-3B missing for three of the last six months and one cheque bounce complaint is pending. The supplier ships ₹1,50,000 on 15 days and asks for advance on the rest until two invoices are paid on time. See credit limit for a new buyer and give credit or ask for advance.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.