Step 01
Vendor verified at onboarding
GSTIN, PAN, Udyam verified live at vendor onboarding. Dispute history captured. Vendor record carries the verified state.
Procurement Software | Vendor Compliance at PO
Vendor compliance verified at PO save. Not at FY-end.
GSTIN status (CBIC), PAN status (CBDT), MSME flag (Udyam), dispute history checked live at vendor onboarding and again at every PO save. A cancelled GSTIN blocks the PO. An MSME flag triggers the 45-day payment scheduling rule downstream.
How it works
From vendor record to PO-time compliance check.
Step 02
Re-verified at PO save
Each PO triggers a re-check. GSTIN status (active or cancelled) is the gating signal. PAN status (active or inoperative) drives TDS rate downstream.
Step 03
Block on critical fail
A cancelled GSTIN blocks the PO with a clear message. An inoperative PAN warns (Section 206AA higher rate will apply). Dispute history surfaces as a soft warning.
Step 04
MSME flag downstream
An MSME-tagged vendor flows to the payment scheduler with the 45-day rule active. Section 43B(h) disallowance computed at scheduling, not at audit.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| GSTIN check at PO | Vendor GSTIN + CBIC API | Active / cancelled / suspended status |
| PAN check at PO | Vendor PAN + CBDT API | Active / inoperative status |
| MSME flag | Vendor Udyam status | MSME tag for 43B(h) downstream |
| Dispute history | Open + resolved disputes | Soft warning at PO |
| Block on critical | Cancelled GSTIN | PO save blocked |
| Audit trail | Every check | Timestamp + status preserved |
-
GSTIN check at PO
- Input
- Vendor GSTIN + CBIC API
- Output
- Active / cancelled / suspended status
-
PAN check at PO
- Input
- Vendor PAN + CBDT API
- Output
- Active / inoperative status
-
MSME flag
- Input
- Vendor Udyam status
- Output
- MSME tag for 43B(h) downstream
-
Dispute history
- Input
- Open + resolved disputes
- Output
- Soft warning at PO
-
Block on critical
- Input
- Cancelled GSTIN
- Output
- PO save blocked
-
Audit trail
- Input
- Every check
- Output
- Timestamp + status preserved
Compliance + integrations
Compliance check at the source, not at the audit.
Vendor compliance checked at PO is the cleanest pattern. The PO carries the verified state forward to the bill, to the payment, to the GSTR-2B match.
Regulations we work within
-
Section 16, CGST Act
GSTIN active status condition for ITC eligibility.
-
Section 206AA
Higher TDS rate where PAN inoperative or absent.
-
MSMED Act + Section 43B(h)
MSME tag flows to payment scheduling.
Connects to
- CBIC GSTIN status API
- CBDT PAN status API
- Udyam Registry MSME status API
Vendor Compliance at PO FAQ
What buyers ask.
Cancelled GSTIN. Does the PO block immediately?
Yes. A cancelled GSTIN at PO save triggers a hard block with a clear message. The vendor record updates with the cancelled status. AP and procurement are alerted. The vendor is locked from new POs until the GSTIN is reactivated.
PAN inoperative. Block or warn?
Warn, not block. Section 206AA applies the higher rate (20% or double the normal rate, whichever higher) on TDS. The system applies the rate automatically; the warning surfaces so the requester knows the implication.
MSME flag. How does it affect the PO itself?
It doesn't affect the PO directly. It tags the vendor so the downstream bill, payment scheduling and Form 3CD reporting respect the MSME status. Procurement teams sometimes use the MSME tag to track government-mandated MSME spending.
How often is the GSTIN re-checked?
At every PO save (live API call). Caching is up to 24 hours for read-heavy operations. For real-time critical decisions (block at PO), the check is always live.
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Run your top 50 vendors through the PO compliance check.
Connect your vendor master, free. The PO compliance check runs across every vendor; the cancelled GSTINs, inoperative PANs and MSME tags all surface tonight.