Before supplying on credit, confirm the buyer's GSTIN is Active and the name matches the order (a buyer registered in Kerala has a GSTIN starting 32), read the GST filing record, and check court cases and defaults reported by other suppliers. For hotels and resorts, also check the filing record for seasonal gaps that run longer than the off-season. FundRaksha Trust runs the GST check free and the full buyer report in one place.
How credit works in Kochi
Seafood processors buy from boats and agents, process and export, and also supply hotels and domestic wholesalers. Spice traders in Mattancherry buy pepper, cardamom and other spices from growers and sell to exporters and processors in other states, where prices and payment both follow the commodity market. Shipping agents, freight forwarders and customs brokers carry dues from importers and exporters.
Hotels, resorts and houseboat operators buy food, linen and services on credit and pay as tourist season collections come in.
Credit risks typical of Kochi's trades
- Seasonal hospitality buyers whose payments stop in the off-season.
- Spice buyers delaying payment when prices fall after the order.
- Freight and clearing dues from importers who run into trouble.
- Export-dependent buyers waiting on overseas payments.
- Domestic seafood wholesalers disputing quality on perishable goods.
Checks to run on a buyer
- Validate the GSTIN with the GSTIN validator. A Kerala registration starts with 32; 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 perishable goods, agree in writing how quality claims must be raised and by when. A claim raised weeks later on fish or produce is weak, and the written term makes that clear.
Worked example: a Mattancherry spice trader and a processor in Tamil Nadu
A Mattancherry trader is asked for ₹6,40,000 of black pepper on 45 days by a spice processor in Erode. The GSTIN starts 33 (Tamil Nadu) and is Active, filing regularly. The GST + Financial report shows no court cases and a good owner score, but one default reported by a cardamom trader. The trader offers 30 days on half the quantity and the rest against payment, with full terms once the first invoice is settled.
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 Kerala can file on MSME Samadhaan before the Kerala Micro and Small Enterprises Facilitation Council (Directorate of Industries and Commerce, Government of Kerala, Thiruvananthapuram) 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 Kochi.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.