B2B supplier fraud in India follows predictable patterns. Most could have been caught with 20 minutes of due diligence.
12-step supplier verification checklist:
Basic identity (15 minutes) - [ ] 1. Verify GSTIN at gstn.in — check status (Active/Cancelled) and filing history. A supplier who hasn't filed GSTR-1 in 3+ months is a red flag. - [ ] 2. Check PAN — ask for PAN card copy. Verify name matches company/proprietor name on GSTIN. - [ ] 3. Confirm business address on Google Maps — does the pinned location match a real factory/warehouse? - [ ] 4. Check MCA registration at mca.gov.in (for Pvt Ltd or LLP) — verify directors and paid-up capital.
Quality and capability (15 minutes) - [ ] 5. Ask for 3 customer references in the same city as your delivery location. Call at least 2. - [ ] 6. Request quality certifications — BIS, ISO, FSSAI, or category-specific. Verify certificate numbers where possible. - [ ] 7. Ask for a factory/warehouse photo or video — a legitimate supplier will share this without hesitation. - [ ] 8. Request the most recent sales invoice (with your GSTIN removed from the buyer field). Check if the invoice format is professional.
Get Compliance Supplier Quotes
Post your Requirement free — verified suppliers respond with competitive quotes within 24 hours. Every deal is covered by Protected Payment (escrow).
Financial check (10 minutes) - [ ] 9. Ask for bank account details and verify the bank name matches the company name on the account (UPI ID or cancelled cheque). - [ ] 10. Check Trade Confidence Score on VyaparSethu if they're registered — a score below 50 needs explanation.
Order risk mitigation - [ ] 11. Start with Protected Payment (escrow via VyaparSethu) for the first order. Funds release only on delivery confirmation. - [ ] 12. Keep advance payment below 30% for any first order above ₹1 lakh. Remaining 70% via Protected Payment on delivery.
VyaparSethu's Verified Supplier badge means steps 1–8 have already been completed by our verification team. Verified Suppliers have lower fraud risk by default.