Before supplying on credit, confirm the buyer's GSTIN is Active and the name matches the order (a buyer registered in Maharashtra has a GSTIN starting 27), read the GST filing record, and check court cases and defaults reported by other suppliers. For tier-2 buyers, also look at their filing record closely: a squeezed tier-2 shows it in GST before it shows it in payments. FundRaksha Trust runs the GST check free and the full buyer report in one place.
How credit works in Pune's supplier belts
A typical Pune component maker supplies machined or pressed parts to a tier-1 or tier-2 company, which supplies an OEM. Payment comes on purchase-order terms, often with monthly billing and debit notes for rejections. When an OEM cuts volumes, the tier-2 in the middle is squeezed first and the small supplier below it waits longest.
IT services firms in Hinjewadi and Magarpatta, and training providers, bill on milestones or monthly retainers. Their risk is less about fraud and more about clients disputing scope or delaying sign-offs.
Credit risks typical of Pune's trades
- Tier-2 buyers under pressure when OEM volumes fall.
- Debit notes and rejections that reduce invoices long after delivery.
- Payment beyond 45 days to Udyam-registered suppliers, often accepted to keep the business.
- Milestone disputes on IT and training contracts.
- Tooling advances paid by the supplier and recovered only through future orders.
Checks to run on a buyer
- Validate the GSTIN with the GSTIN validator. A Maharashtra registration starts with 27; 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.
Re-check existing tier-2 buyers whenever the auto cycle turns. A watchlist on key accounts tells you when other suppliers start reporting defaults.
Worked example: a Chakan press-shop and a tier-2 buyer in Aurangabad
A Chakan press-shop is offered ₹12 lakh a month of sheet-metal parts by a tier-2 company in Aurangabad, on 60 days. The GSTIN is Active (27), but the GST + Financial report shows GSTR-3B filed late in batches over the last year, one recovery suit by a steel supplier, and recent delays on the owner's loans. The press-shop accepts on 45 days, with a ₹10 lakh limit and production for the next month only after the previous month is paid.
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 Maharashtra can file on MSME Samadhaan before the Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions) (Directorate of Industries, Government of Maharashtra, Mumbai, and regional Joint Director of Industries offices) 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. Maharashtra runs regional Councils; a Pune supplier's claim is heard in the Pune region.
Report the defaulter so other suppliers are warned, and for recovery help in the city see FundRaksha Pune.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.