e-Invoicing APIs under GST- Everything You Need To Know

After the introduction of e-Invoicing, many businesses aligned themselves with the e-Invoicing system.

Majority of the businesses use custom ERP software solution to manage their sales and purchase data.

In order to enable the e-Invoice generation process right from their ERP and to connect to the Government Portal, they need some connectors or an intermediary which is called as API gateway.

Businesses get these APIs from the government appointed GST Suvidha Providers (GSPs) or use e-Invoicing software.

GSPs provide these connectors to the businesses for facilitating easy access to the government portal from their ERPs to make their GST return filing process much easier.

In this brief article, we will learn about the details of the APIs used to connect your ERPs directly to the e-Invoicing portal for easy e-Invoice generation as well as GST return filing process.

What is this API?

API stands for Application Programming Interface. From the name, it is evident that it has nothing to do with the GST system directly.

API is a tech-end term and can be a challenge in understanding for all the non-technical audience.

Well, it’s not that difficult either. Let me give you a simple example to understand this better.

The waiter here acts as an intermediate agent (postman) between the customer and the Kitchen.

The customer gives his order to the waiter, the waiter then gives the requirement to the kitchen.

Further, the kitchen hands over the food to the waiter, and finally the waiter serves it to the customer.

This is exactly how our API works.

GST e-Invoicing APIs

As discussed in the example above, we can apply a similar concept here for understanding the function of Application Programming Interface (APIs) in the context of the GST e-Invoicing system.

These e-invoicing APIs facilitate as a communication channel between:

1. Taxpayers and the e-Invoicing System
2. GST Suvidha Providers (GSPs) and the e-Invoicing System

These APIs will work as a connecting block for the exchange of data between the taxpayers and the e-Invoicing system.

Who can use GST e-Invoicing APIs?

Taxpayers and GST Suvidha Providers are the users of these APIs. These APIs help the taxpayers to be compliant with the GST rules.

Following is the list of the taxpayers who are eligible to use the APIs for e-invoice generation. This classification is based on the annual aggregate turnover.

In short, any business eligible for the e-Invoicing can use these APIs.

But the important point to note is that, he has to get these APIs form a government appointed GST Suvidha Provider.

How does API help in e-invoice Generation?

APIs are very helpful in the e-Invoice generation process.

A taxpayer either directlyuploads the data to the Invoice registration Portal (IRP) or hires a GST SuvidhaProvider(GSPs) to upload the data for him.

Irrespective of who uploads the data on the IRP, these APIs are used to send the data to the IRP platform.

The invoice data uploaded on the IRP then get registered under the IRP and a unique Invoice Reference Number (IRN) gets generated. This e-Invoice is then sent back to the taxpayer with the digital signature and QR code appended on it.

The taxpayer’s ERP system or the GSP’s system can further print the e-Invoice which will have a unique IRN and a QR code.

GST APIs- Significance & Purpose

GST council has made consistent efforts to make the GST structure more lucid and user-friendly.Making the taxpayer’s process simple and user-friendly is the ultimate aim of the GST system.

The government has even appointed 'GST Suvidha Providers (GSPs) for the convenience of the taxpayers and to ease the complete GST return filing process.

TheseAPIs connect to the GST Filing platforms like GSTN or IRP. This makes the task of the taxpayers more easy and user-friendly.

As far as e-Invoicing is concerned, the taxpayers can generate their invoices on their respective ERP software like Tally, Oracle, Microsoft Dynamics, or another custom ERPs.

These invoices are to be reported on the IRP platform for the e-Invoice generation under GST with a unique IRN and a QR code.

These APIs can also be integrated with the respective ERPs of the taxpayers.

To sum it up, there is a three-level interaction between the taxpayers, the GSPs, and the e-Invoicing System.

e-Invoicing GST APIs- Advantages

1. APIs enable a smooth and secured data flow between the taxpayer or GSP and the IRP platform.
2. Seamless integration between the ERP or accounting software of the taxpayer and the e-Invoicing system.
3. These APIs will help the taxpayer to eliminate the data entry errors by validating the data before uploading it to the IRP.
4. Duplication of entries will be eliminated as the details of the outward supplies will be first entered into the ERP system of the taxpayer and then passed on to the IRP.
5. Taxpayers have to input the data into their ERP system only once. This same data will be replicated for the e-Way Bill generation and the GST portal for the auto-population of the GSTR-1.

Where can I get GST e-Invoicing APIs?

Now, after understanding the details of the e-Invoicing APIs, it is very important to know where to find these APIs.

The answer is simple, you can get these APIs from any government-appointed and authorized GST Suvidha Provider.

The GSPs get the raw APIs from the Government.

The APIs are then enhanced with improved features like advanced reconciliations, validation checks for the data, etc.

You can find the APIs for all your e-Invoicing needs, here.

Are there any pre-requisites to access the APIs?

Yes, to access and use these APIs certain conditions should be fulfilled.

Let me jot down some of them below:

1. GSPs and taxpayers should strictly adhere to the IT standards specified by the Government of India.
2. GSPs and taxpayers must comply with the IT Act 2000 and the amendments thereof.
3. As the data being handled by the GSPs is very sensitive and there is a huge risk involved for the misuse of this information. Hence it is compulsory for the GSPs/ taxpayers that they meet the prescribed security requirements. You can find the details at www.cert-in.org.in/.
4. GSPs and taxpayers will have to test their modified systems on the e-Invoice pre-production site. This is an important step to get your modification tested from the government portal.

For more details and insights you can click, here.

In Conclusion

In this brief article, we have discussed the features and working of the APIs used for e-Invoice generation.

We can easily integrate these e-Invoicing APIs with any of the ERPs to facilitate an easy and error-free process.

GSPs can make a difference in saving the time and costs of the taxpayers by validating the data, reconciliation the invoices, and fully automated the process.

It is advisable to the taxpayers to opt for a government appointed GSP.

Until the next time…

About the Author– GSTHero– Making GST Simple! GSTHero is the best GST filing, e-Way Bill Generation & E Invoicing Software in India. GSTHero is a government authorized GST Suvidha Provider. Both Businesses and Tax Practitioners can file GSTR 1, GSTR 3B, GSTR 9 and GSTR 9C with all supporting reports. 1 Click Auto Reconciliation& report-matching feature helps you in claiming up to 100% ITC and finds your GST Defaulting Suppliers. GSTR2A vs GSTR-3B, GSTR-1 vs GSTR-3B, ‘GSTR-1, GSTR-2A & GSTR-3B’ annual report matching is also provided by GSTHero.

GSTHero ERP Plugins provide 1 Click e-Way Bill & E-Invoice, Generation, Operation & Printing from your own ERP like Tally, SAP, Marg, Busy, Microsoft Dynamics, Oracle & others itself with high data security