GST & Compliance
MSME, Udyam & the 45-Day Rule
Record a customer's Udyam number, flag invoices that breach the MSMED Act 45-day deadline, and produce evidence packs for disputes.
If you're a registered MSME, the law gives you a hard payment deadline and real teeth to enforce it. InvoiceKaro helps you record Udyam details, surfaces invoices that breach the 45-day rule, and packages the proof you'd need to escalate.
Record Udyam and the MSME flag
MSME status lives on the customer record, so it travels with every invoice you raise for that party.
- 1Open the Customers tab and open or add a customer.
- 2Enter their Udyam number and MSME category in the MSME/Udyam fields.
- 3Save. The customer now carries an MSME badge wherever they appear, so the status is obvious at a glance.
The 45-day rule
Under the MSMED Act, 2006 (sections 15–16), a buyer must pay a registered MSME supplier within 45 days. Miss it and the consequences compound:
- Interest accrues at up to three times the RBI notified rate, compounded monthly.
- The dues can be escalated through the MSME Samadhaan portal to a Micro and Small Enterprise Facilitation Council.
| Day | Status |
|---|---|
| 0 | Invoice raised / goods or services accepted |
| Up to 45 | Within the statutory window — payment due |
| 45+ | Breach — MSMED Act interest applies and Samadhaan escalation is available |
Where breaches surface in Collect
The Collect workspace and its Payment Health dashboard turn the rule into a number you can see. Alongside total receivable, overdue and worst overdue, it surfaces the MSME 45-day breach amount — the value of dues that have crossed the statutory deadline — so nothing slips quietly past 45 days.
Evidence packs as a dispute artifact
If a payment dispute or a Samadhaan escalation looms, you want a single, tamper-evident record of what was delivered, agreed and chased. That's the Evidence Pack PDF — generated per milestone or per project. It bundles:
- The invoice itself.
- Proof of delivery — attached files, links and notes.
- The reminder history showing every nudge you sent.
- The signed acceptance from the client.
The acceptance comes from the public client approval link (/approve/{token}, valid around 30 days). When the client approves, InvoiceKaro produces an immutable acceptance certificate recording the approver's name, email, IP, browser and timestamp, plus a SHA-256 hash of the deliverable bundle — so what was approved can't be quietly swapped later.