Before supplying on credit, confirm the buyer's GSTIN is Active and the name matches the order (a buyer registered in Telangana has a GSTIN starting 36), read the GST filing record, and check court cases and defaults reported by other suppliers. For construction and real-estate buyers, also check court cases and tribunal matters. FundRaksha Trust runs the GST check free and the full buyer report in one place.
How credit works in Hyderabad
Bulk-drug and intermediates makers in Jeedimetla and Pashamylaram sell to formulation companies across India, and buy solvents, chemicals and packaging from local suppliers on credit. Engineering and electrical units in Balanagar and Cherlapally supply manufacturers, contractors and government projects. IT and IT-enabled services firms bill clients monthly or on milestones.
Real estate and construction draw in steel, cement, electrical, plumbing and interiors suppliers, who are usually paid as the builder's own collections come in.
Credit risks typical of Hyderabad's trades
- Out-of-state formulation buyers on 60 to 90 days with price-linked disputes.
- Builders and contractors paying sub-suppliers late during slow sales.
- IT clients delaying sign-off on deliverables.
- Solvent and chemical traders reselling to buyers you do not see.
- Government projects with payments tied to bill processing.
Checks to run on a buyer
- Validate the GSTIN with the GSTIN validator. A Telangana registration starts with 36; 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.
For a builder, run the GST + Financial report on the entity that signs the order, not the group's best-known company. Project companies are often separate GSTINs.
Worked example: a Balanagar electrical contractor and a Hyderabad builder
A Balanagar electrical-panel maker is asked to supply ₹14 lakh of panels on 90 days to a residential project in Kokapet. The project company's GSTIN starts 36 and was registered two years ago. The GST + Financial report shows regular filing, but four court cases by contractors and one tribunal matter. The panel maker agrees milestone billing with 30% advance and payment within 30 days of each delivery.
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 Telangana can file on MSME Samadhaan before the Telangana State Micro and Small Enterprises Facilitation Council (Commissionerate of Industries, Government of Telangana, Hyderabad) 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 Hyderabad.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.