Vendor onboarding in India: what to verify before approval

A practical checklist for onboarding a new supplier in India: GST, PAN, bank account and MSME checks, the documents to collect, and who approves.

Most supplier problems are onboarding problems that surface later. A wrong GSTIN found after the first invoice, a bank account that belongs to a director rather than the company, an MSME claim nobody checked. The fix is boring: verify at onboarding, before anyone approves.

What to collect

Company details: legal name, registered address, constitution.
Tax: GSTIN and PAN.
Bank: account number, IFSC, and a cancelled cheque or bank letter.
MSME: Udyam registration, if the supplier claims it.
Compliance documents your policy needs, such as a signed code of conduct.

What to verify, not just collect

Collecting a document is not verifying it. Four checks are worth running on every new supplier:

GST. Confirm the GSTIN is active and belongs to the legal name on the form.
PAN. Confirm the PAN matches the entity.
Bank account. Confirm the account exists and is in the supplier’s name.
MSME. Confirm the Udyam registration, because MSME status changes payment terms and reporting.

Who approves, and when

Approval should happen after verification, on the same record. If the approver sees the form but not the verification result, they are approving a promise.

How SupplierX does it

Suppliers register themselves on the SupplierX supplier portal and upload their own documents. SupplierX checks GST, PAN, bank account and MSME details through verification providers. Your approvers review the verified record in one approval workflow. The approved supplier can quote on RFQs and see orders, GRNs, invoices and payment status on the portal.

See it on your process

Book a 30-minute demo on demo data, set up around your ERP landscape.

SupplierX is an independent source-to-pay platform. Its deepest native connectivity is with SAP ECC, SAP S/4HANA Private Cloud and SAP S/4HANA Public Cloud, and it connects to any other ERP.