A wholesaler offers 50 units of a fast-moving phone model at ₹400 below the market rate. The stock looks real in the photos, and the seller sends a GSTIN on WhatsApp. Before any money moves, that GSTIN deserves five minutes of your time. A fake or cancelled registration costs you more than the deal: you lose the input tax credit on the purchase, and you may have bought stock with no traceable source.
What a GSTIN tells you
A GSTIN is 15 characters, and each part means something:
- First two digits: the state code (07 is Delhi, 27 is Maharashtra, 29 is Karnataka).
- Characters 3 to 12: the business's PAN.
- 13th character: the registration number for that PAN in that state.
- 14th character: usually "Z".
- 15th character: a check digit.
If the state code doesn't match the city the seller claims to ship from, ask why before going further.
The five-minute check
1. Search it on the GST portal
Use Search Taxpayer on gst.gov.in and enter the GSTIN. Note down:
- Status: it must be Active. A Cancelled or Suspended GSTIN can't issue an invoice you can claim credit on.
- Legal name and trade name: these should match the name on the invoice you'll receive.
- Date of registration: a registration a few weeks old, offering large volumes of premium stock, is a warning sign.
- Nature of business: look for wholesale or retail trade.
2. Check their filing history
The portal shows whether returns have been filed and how regularly. A supplier who skips GSTR-1 filings is a risk to you: your credit depends on their invoices appearing in your GSTR-2B.
3. Match the bank account to the business
Ask for payment details in the business's name. A personal account for a GST invoice is a common sign of trouble.
How Elex Exchange handles this for you
Every business on Elex Exchange registers with its GSTIN, and our team checks it against the GST portal before the account can post listings or contact other traders. A verified trader carries the verified mark on every listing.
Verification confirms the business is real and registered. It doesn't confirm a particular consignment. That's why every rating on Elex Exchange shows who gave it, and why we always say: check the goods before you pay. Elex Exchange never holds money, so payment terms are agreed directly between the two traders.
A quick checklist before you pay
- GSTIN status is Active on the GST portal
- Legal name matches the invoice and bank account
- Recent returns are filed
- The state code fits the shipping location
- You've inspected the stock or a sample
You can browse live, verified stock on the market before you register, by model, quantity and city.