Before supplying on credit, confirm the buyer's GSTIN is Active and the name matches the order (a buyer registered in Delhi has a GSTIN starting 07), read the GST filing record, and check court cases and defaults reported by other suppliers. In wholesale trading, also make sure the business that pays you is the one on the GSTIN. FundRaksha Trust runs the GST check free and the full buyer report in one place.
How credit works in Delhi's markets
In Gandhi Nagar's garment market and Chandni Chowk's wholesale lanes, credit is given on reputation and repeat business, often without a written order. Electronics and electricals traders buy from manufacturers and importers and resell to retailers across Delhi NCR, Haryana and Uttar Pradesh. Okhla and Bawana hold printing, packaging and component units that supply both traders and corporates.
Government and PSU supply is a separate world: tenders, purchase orders and payment after inspection and bill processing, where delays come from paperwork rather than refusal.
Credit risks typical of Delhi's trades
- Intermediaries who order in one name, pay from another account and disappear when stock moves.
- Borrowed or recently registered GSTINs in fast-moving trading.
- Retailer chains of credit in electronics, where the trader pays you after the retailer pays him.
- Government bills held for missing documents or budget timing.
- Cross-border NCR buyers in Haryana (06) or Uttar Pradesh (09) billed to the wrong GSTIN.
Checks to run on a buyer
- Validate the GSTIN with the GSTIN validator. A Delhi registration starts with 07; a different prefix means the buyer is registered in another state, which is fine if it matches the billing address on the order.
- Run the [free Trust check](https://www.trust.fundraksha.com/gst-lookup): status Active, legal and trade name matching the purchase order, registration date and constitution.
- Read the filing record in the Advance GST report (129 RP), which also shows registered contacts, associated people and places, and defaults reported by other suppliers.
- For a larger order, the GST + Financial report (499 RP) adds court cases, tribunals and FIRs and the owner's credit score and loan record, fetched with the owner's consent, and ends in a give-credit, caution or avoid decision.
In trading, match three names: the GSTIN legal name, the name on the purchase order and the name on the bank account or cheque that pays you.
Worked example: an Okhla printer and a new trader in Noida
An Okhla printing unit is asked for ₹2,40,000 of printed cartons on 45 days by a trader who gives an address in Noida. The GSTIN starts 07 (Delhi) instead of 09 (Uttar Pradesh), and was registered five months ago. The Advance GST report shows two months of GSTR-3B not filed and associated places that do not include Noida. The unit asks for full advance on the first order and offers credit after three paid orders.
If a buyer stops paying
Act early. Start with a payment follow-up, then a legal notice by email and WhatsApp or by registered post with proof of delivery. For a bounced cheque, the Section 138 notice must go within 30 days of the return memo.
A micro or small supplier with Udyam registration located in Delhi can file on MSME Samadhaan before the Delhi Micro and Small Enterprises Facilitation Council (Office of the Commissioner of Industries, Government of NCT of Delhi) once the buyer is past the agreed period, which the MSMED Act caps at 45 days. Interest runs at three times the RBI bank rate, compounded monthly.
Report the defaulter so other suppliers are warned, and for recovery help in the city see FundRaksha Delhi.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.