Buying Wholesale for Your Shop: MOQ, GST Invoice and Credit

IndiaWish Team · Wholesale · 3 min read

Buying stock in bulk lowers your cost per piece, but only if you buy the right quantity, from a genuine supplier, with a proper GST invoice. This guide covers the basics every small shop owner and reseller should know before placing a wholesale order.

1. Know what sells before you buy in bulk

Start with the items your customers already ask for. Order a smaller quantity first, see how fast it sells, then increase. Stock that sits on the shelf ties up your money and can go out of date or out of fashion.

2. Minimum order quantity (MOQ) and price slabs

Most wholesalers set a minimum order quantity, the smallest number of pieces they sell at the wholesale price. Many also have price slabs: the more you buy, the lower the price per piece. For example:

(Example numbers only.) Work out which slab makes sense for how fast you sell. Saving ₹10 a piece on 200 pieces is not a saving if 150 of them sit unsold for months.

On IndiaWish Wholesale, each listing shows the MOQ and price slabs, and you can ask several suppliers for their best price at once.

3. Check the supplier

• GSTIN: a registered supplier has a 15-character GST number. Check it on the official GST portal (gst.gov.in → Search Taxpayer → Search by GSTIN/UIN). Make sure the name and address match the supplier and that the registration is active.
• Business details: how long they have been in business, whether they are a manufacturer, wholesaler or trader, and their address. On IndiaWish, suppliers whose GST the team has checked show a GST verified badge.
• Samples: for a new supplier, ask for a sample or start with a small order.
• References: ask other shop owners in your market.

4. Get a proper GST invoice

If you are registered under GST, a correct tax invoice lets you claim input tax credit (ITC): the GST you paid on your purchases is set off against the GST you collect on your sales. The invoice should show:

• The supplier's name, address and GSTIN
• Your name, address and GSTIN (without your GSTIN on it, you can't claim the credit)
• Invoice number and date
• Description of goods, HSN code, quantity and rate
• Taxable value, GST rate and the amount of CGST and SGST (same state) or IGST (another state)

5. Make sure you can actually claim the credit

Your credit depends on the supplier doing their part too. In general you can claim ITC when:

1. You have the tax invoice.
2. You have received the goods.
3. The supplier has reported the invoice in their GST return, so it appears in your GSTR-2B on the GST portal.
4. The supplier has paid the tax to the government.
5. You file your own returns.

Check GSTR-2B every month. If an invoice from a supplier is missing, ask them to report it. Rules change from time to time, so confirm details with your accountant or tax advisor.

6. Payment and delivery terms

• Agree the price, delivery date, who pays for transport, and what happens with damaged or wrong goods, in writing (a message or email is enough).
• For a new supplier, prefer paying part in advance and the rest on delivery, or full payment on delivery.
• Pay by bank transfer or UPI to the business's account, not a personal account with a different name.
• Check the goods when they arrive: count, quality, and the e-way bill for larger consignments.

7. Post a buy requirement

If you know what you need, let suppliers come to you: post a buy requirement with the product, quantity and your city, and compare the quotes you get.

Checklist before you order

Find suppliers and bulk deals on IndiaWish Wholesale.