B2B Trade Glossary
Every Indian B2B buyer and supplier should understand these terms before their first transaction. Plain language, no jargon.
Business Registration
What is MSME?
Micro, Small and Medium Enterprise — India's official classification for businesses below ₹250 crore turnover that unlocks priority credit, govt tenders, and subsidies.
Read definition →What is Udyam Registration?
The official free digital certificate that classifies a business as Micro, Small, or Medium (MSME). Replaced the old Udyog Aadhaar system in July 2020.
Read definition →Taxation & Compliance
What is HSN Code?
Harmonised System of Nomenclature — a 6–8 digit international product classification code used in GST invoices to determine the correct tax rate.
Read definition →What is GST?
Goods and Services Tax — India's unified indirect tax that replaced excise duty, VAT, and service tax in July 2017. Applies to all B2B transactions above ₹40 lakh turnover.
Read definition →What is a GST Invoice (Tax Invoice)?
A tax invoice is the mandatory legal document issued by a GST-registered supplier at the time of supply. It enables the buyer to claim Input Tax Credit (ITC).
Read definition →Procurement
What is RFQ (Request for Quotation)?
A Request for Quotation is a formal document a buyer sends to suppliers asking for price, lead time, and terms — the first step in any B2B procurement. On VyaparSethu it's called a "Requirement".
Read definition →What is a Purchase Order (PO)?
A Purchase Order is a legally binding commercial document a buyer issues to a supplier confirming the agreed product, quantity, price, delivery date, and payment terms.
Read definition →What is a Pro Forma Invoice?
A preliminary invoice sent before goods are dispatched. It confirms price, quantity, and terms — used to get buyer approval and arrange advance payment or LC.
Read definition →Payments & Finance
What is Escrow Payment (Protected Payment)?
An escrow holds the buyer's payment with a neutral third party until the supplier delivers as agreed — eliminating advance payment fraud in B2B trade. VyaparSethu calls this "Protected Payment".
Read definition →What is Trade Credit?
An arrangement where a supplier allows the buyer to pay 30–90 days after receiving goods — the most common form of short-term business financing in India.
Read definition →What is a Letter of Credit (LC)?
A bank-issued guarantee that a buyer's payment will be made to the seller on time and for the correct amount — the gold standard for international and large domestic B2B transactions.
Read definition →Trade
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