The 70:30 Split Invoicing Crisis: Why Solar EPCs Are Risking Severe GST Audits

The Composite Works Contract Dilemma

Solar installations are legally treated as "Works Contracts" combining both goods and services under Indian GST regulations. This mandates a highly specific, complex split: 70% of the contract value must be billed at 12% GST (representing panels, structures, and cables), and 30% of the contract value must be billed at 18% GST (representing labor, engineering, and installation services).

Generic billing apps like Vyapar, Tally, or MyBillBook are built for simple retailers. They do not support splitting a single solar project into these exact proportions on a single invoice, forcing installers to compute these values manually. One minor math error or rounded-off decimal discrepancy can trigger severe GST compliance notices and huge penalties during tax audits.

The Solution: The Automated Solar GST Engine of Vendor NetFlow

Vendor NetFlow eliminates tax compliance risks with a native 70:30 Solar Invoicing Engine:

1. 1-Click Split Calculations: Enter the total project cost. The system automatically computes the 70% material margin (taxed at 12%) and the 30% labor margin (taxed at 18%) instantly.
2. Accurate Tax Slabs: Distributes CGST and SGST down to the exact decimal based on customer locations.
3. Audit-Ready Records: Automatically formats and structures your invoice records, generating GSTR-ready reports in seconds.

Protect your solar business from auditing traps. Use Vendor NetFlow to generate 100% compliant, flawless solar GST tax invoices instantly!