Most Indian exporters are honest businesses, but every buyer has heard of a deposit sent to a supplier who then vanished, or of goods that looked nothing like the sample. Nearly all of these cases could have been caught with a few checks that take less than an hour and cost nothing. Here is the checklist experienced importers use.
Ask for the supplier's GSTIN, IEC and company registration, and check them yourself on the GST portal, the DGFT website and, for companies, the Ministry of Corporate Affairs records. Confirm the names match each other and the bank account you will pay. Then hold a video call of the factory or warehouse, ask for references or past shipment documents, and for a first order use an independent pre-shipment inspection before paying the balance.
1. GST registration (GSTIN)
Every Indian exporter of goods is registered for GST. The GSTIN has 15 characters: the first two digits are the state code, the next ten are the business's PAN, and the last three are check characters. Use "Search Taxpayer" on the official GST portal (gst.gov.in) to see the legal name, trade name, business type, registration date and whether the registration is active. A cancelled or very recent registration, or a legal name different from the one on the quotation, is a reason to ask questions.
2. Import Export Code (IEC)
An Indian business needs an IEC from the Directorate General of Foreign Trade (DGFT) to export. For most businesses the IEC is the same as the PAN. Ask for the IEC certificate and check the details on the DGFT website. The name and address should match the GST record. A supplier who claims to be an exporter but has no IEC may be a broker passing your order to someone else.
3. Company records and other registrations
- Private or public limited companies and LLPs are listed with the Ministry of Corporate Affairs. The company master data shows the incorporation date, status and directors.
- Udyam (MSME) registration can be checked on the Udyam portal and shows whether the business declared manufacturing or services.
- RCMC from the relevant export promotion council (for example APEDA for agri-food or EPCH for handicrafts) shows the exporter is registered in its sector.
- Product licences where needed: FSSAI for food, drug licences for medicines, BIS or test reports for regulated products.
4. The bank account name test
This is the check that stops most payment fraud. The beneficiary name on the bank details must be the same business you verified. Be very careful if the supplier asks you to pay a personal account, a different company, or an account in a third country, or if bank details "change" by email just before payment. Confirm any change by a phone or video call to a number you already know.
5. See the business
- Video call walking through the factory or warehouse, with your product on the line or in stock.
- Photos and videos of your order during production, with the date and your purchase order number visible.
- Factory audit by an inspection agency for large or long-term orders.
6. References and track record
Ask for one or two buyer references in other countries, or for redacted copies of past shipping bills or bills of lading for the same product. Search the company name with words such as "fraud" or "complaint". A long-established website, a consistent address and phone number, and sensible answers to technical questions are all good signs.
Red flags
- Prices far below everyone else's for the same specification.
- Pressure to pay in full in advance, or "today only" offers.
- Refusal to share GSTIN, IEC or company details, or to hold a video call.
- Free email addresses only, no landline or fixed address, or a website registered last month.
- Bank account names that do not match the business.
Protect the first order
Start with a smaller trial order, pay a part advance and the balance after an independent inspection, or use a letter of credit. Once the supplier has delivered well two or three times, you can move to easier terms. See pre-shipment inspection and the complete guide to importing from India.
Frequently asked questions
How do I check if an Indian company is genuine?
Verify its GSTIN on the GST portal, its IEC on the DGFT website and, for a company, its records with the Ministry of Corporate Affairs. Confirm the names match each other and the bank account you will pay.
What is a GSTIN?
The 15-character Goods and Services Tax identification number. The first two digits are the state code and the next ten are the business's PAN.
Is an IEC the same as a PAN?
For most businesses the IEC number is the same as the PAN, but it is issued separately by DGFT and is required to export.
Should I pay 100% advance to a new Indian supplier?
It is better not to. Pay a part advance and the balance after an independent inspection, or use a letter of credit, until the supplier has a track record with you.
Sourcing from India? Post your requirement
Tell us the product, quantity and destination. Our team checks suppliers before introducing them, and each requirement goes to at most 5 suppliers so you get focused quotes, not a flood.
Post your requirement →Sourcing guides by country
Duties, documents and local rules for buyers importing from India into your market.
