Glossary
The terms, in plain words.
Definitions of the solar, GST and trade terms Indian installers and distributors deal with every day, and how Ordwell handles each. A definition explains a term; it is not tax or legal advice.
Solar · GST · Money and stock
Solar
70:30 deemed valuation
- The GST rule for a solar power plant supplied with its installation as one contract (an EPC contract). 70% of the contract value is treated as goods taxed at 5%, and 30% as services taxed at 18%, which works out to 8.9% on the whole. Ordwell splits every EPC invoice this way automatically, so the tax is right without anyone working it out by hand.
EPC contract
Engineering, procurement and construction
- A turnkey contract in which one installer designs, buys the equipment for and builds the whole system. For a rooftop solar plant it is usually valued for GST under the 70:30 rule.
PM Surya Ghar
PM Surya Ghar: Muft Bijli Yojana
- The Government of India scheme that pays a subsidy to households installing rooftop solar, up to ₹78,000 per home. The installer files the application and documents; the subsidy reaches the consumer by Direct Benefit Transfer. A rejected file can cost the household the subsidy, which is why Ordwell checks a file before it is submitted.
DISCOM
Electricity distribution company
- The state electricity distribution company. For rooftop solar it approves feasibility, inspects the installation and fits the net meter. Each DISCOM has its own forms, documents and turnaround times, and Ordwell tracks each project against them.
Net metering
- A bidirectional meter approved by the DISCOM that records both the electricity a home draws from the grid and the electricity its solar plant sends back, so the household pays only for the difference.
ALMM
Approved List of Models and Manufacturers
- The Ministry of New and Renewable Energy's list of solar modules (List-I) and cells (List-II) approved for government-supported projects. Modules must be on List-I for a subsidy project; Ordwell checks the panels on a project against it.
DCR
Domestic Content Requirement
- The rule that subsidy projects use domestically manufactured cells and modules, proven by a DCR certificate number for the panels. Ordwell keeps the certificate with the project and will not let a subsidy claim be recorded without it.
SLD
Single line diagram
- A simple electrical drawing of a solar installation, required by the DISCOM. Its format varies by DISCOM, and a mismatch is one of the commonest reasons an application is sent back.
Milestone billing
- Billing a project in parts as it reaches agreed stages — for example 30% on order, 40% on installation and 30% on commissioning. Ordwell raises each milestone invoice when the project reaches its stage.
GST
CGST, SGST and IGST
- The parts of GST. A sale within one state carries CGST and SGST (central and state tax, half each); a sale to another state carries IGST. Which applies depends on the place of supply, which Ordwell decides from the delivery or installation address.
RCM
Reverse charge mechanism
- Supplies on which the buyer, not the seller, pays the GST — for example some services from unregistered suppliers. Ordwell records the tax on the right side and keeps it apart for the return.
ITC
Input tax credit
- The GST you paid on purchases that you may set off against the GST you collect on sales. Your purchase bills, entered or read by AI in Ordwell, carry their ITC into the GST workings.
e-Invoice and IRN
Invoice Reference Number
- For businesses above ₹5 crore aggregate turnover, B2B invoices must be registered on the government's Invoice Registration Portal, which returns an IRN and a signed QR code. Ordwell registers the invoice when it is finalised and prints the IRN and QR on it.
AATO
Aggregate annual turnover
- A business's total turnover across all its GST registrations in a year. It decides whether e-invoicing applies (above ₹5 crore) and whether an invoice must be registered within 30 days (₹10 crore and above).
e-Way bill
- The document required to move goods worth more than ₹50,000 by road, generated on the government portal with the vehicle and route. Ordwell creates it from the invoice or delivery challan, so the details are not typed twice.
GSTR-1 and GSTR-3B
- The two main GST returns: GSTR-1 lists your sales invoice by invoice; GSTR-3B is the monthly summary on which tax is paid. Ordwell prepares both from your posted documents and checks them before you file.
GSTR-2B and IMS
Invoice Management System
- GSTR-2B is the statement of purchase invoices your suppliers have reported, which decides the input tax credit you can claim. IMS is the GST portal's screen for accepting or rejecting those invoices. Ordwell matches them against the purchase bills in your books.
HSN and SAC
- The codes that classify goods (HSN) and services (SAC) for GST, and decide the tax rate. Each item in Ordwell carries its code — found by describing the item, from the official GST list — and rates are dated so a change applies from the right day.
Money and stock
Retention
- A share of a bill the customer holds back until a later event, such as handover or the end of a warranty period. Ordwell keeps retention separate from what is overdue, so it is collected on time rather than forgotten.
Capital locked
- Money tied up in projects that has not been collected yet: work billed but unpaid, and work not yet billed. Ordwell shows it by project stage, so you can see where your cash is stuck.
Ageing
- Grouping what customers owe by how long it has been overdue — for example 0–30, 31–60, 61–90 and over 90 days. Ordwell keeps ageing current every day and sends reminders by it.
FEFO
First expiry, first out
- Selling or issuing the stock that expires soonest first. In Ordwell's distribution edition, batches with expiry dates are picked this way, so less stock is lost to expiry.
Schemes and slabs
- Trade offers a distributor runs with its dealers: a discount that rises with quantity (slabs), or free goods for buying a certain amount. Ordwell applies the right scheme on the invoice and shows a dealer how close they are to the next slab.
Beat
- The fixed route a salesman follows to visit dealers on set days. In Ordwell a salesman takes orders and collects payments on the beat from a phone.
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