In the case of e-Invoicing, an Application Programming Interface (API) is an acting intermediary that facilitates communication between the taxpayer and the e-Invoice Portal. This article will list down the possible ways of using APIs for implementing the e-Invoicing mechanism.
The GST Network (GSTN) allows eligible taxpayers (businesses with an annual turnover of more than Rs 100 crores) to use APIs to integrate with the Invoice Registration Portal (IRP) directly. This integration helps taxpayers in generating the Invoice Reference Number (IRN) for the invoices in real-time. To use this mode of integration, the taxpayers need to:
- First, use the sandbox environment to test the API Integration.
- Post this; a test summary report, in the prescribed format, needs to be sent to email@example.com.
- On successful verification of this report, the taxpayer will be given API production details.
- The taxpayers can then log into the e-Invoice Portal (https://einvoice1.gst.gov.in Portal)*.
- If the taxpayer has already integrated with the e-Waybill API’s, he/she can use the same API credentials. However, if a new integration is opted for, the IP whitelisting has to be initiated. For this, taxpayers have to select the IP whitelisting option under the API registration tab and enter the IPs’ to be whitelisted. Here, a maximum of four IPs can be submitted.
- The IP address of the taxpayers will be then scrutinised and whitelisted.
- On successful registration, the taxpayer will receive a Client ID and a Client Secret for future use (to generate e-Invoices).
*Note: If the taxpayer is already registered on the e-Way bill Portal, he/she can use the same login credentials to enter the e-Invoice Portal. Alternatively, he/she can apply for new registration by selecting the registration option on the Portal.
The approximate cost involved here will be in the range of INR 5-7 lakhs.
With this kind of integration:
- There will be direct interaction between GSTN and Taxpayer,
- Data security is ensured and
- Accuracy and efficiency are improved.
The commonly faced issues here are:
- Enterprises may not be well-equipped to realign their ERP system for regular API updates.
- It can be difficult to collate data according to the GSTN’s e-Invoice schema/format without expert assistance.
GSP stands for GST Suvidha Provider. Many businesses consider the GSP Based API Integrations as one of the easiest and fastest methods for implementing the e-Invoicing process. Trusted GSPs like Masters India are usually preferred. This is because their APIs are scalable, and they offer real-time support.
Certains GSPs also provide several value-added services. The backup of data is one among them. This becomes important as the IRP does not store information for more than 24 hours.
For this kind of integration, all you need to do is, select the best fit GSP for your business. Post that, the GSP’s will take care of the rest.
Note: Once the GSP is onboarded, the steps involved here are similar to those mentioned above. However, the only difference would be that the GSP has to send the required test summary report to support.einv.api@gov. Post this; once the report is verified, the GSP will be provided with the API production details. Taxpayers can use these details to proceed with the next steps.
Furthermore, the taxpayers must register their GSP on their e-invoice Portal (if nor done for e-Way Bill).
The list of GSPs registered with the GSTN is available here.
Masters India is a GST Suvidha Provider (GSP) appointed by the Goods and Services Tax Network (GSTN), a Government of India enterprise. We offer tax and financial automation products to enterprises.
Our e-Invoicing APIs can help you automate the entire process flawlessly. Here are the benefits of using Masters India’s e-Invoicing APIs:
We take data security very seriously. The data shared by you is shared with the IRP and brought back in an encrypted format through a secured network. There are no third parties involved.
While our APIs are integrated with your systems, you can automatically report invoices to the IRP on a real-time basis and digitally share the signed e-Invoices with your buyers/recipients.
We provide a single window for communicating with all three government Portals (GST, EWB and e-Invoicing).
The enterprises associated with us can surely vouch that our connections are stable and can balance load without compromising the performance.
Our teams are working round the clock. We have our well-trained experts, always ready to address functional and technical queries.
- In the case of sister concerns, the public IP used by the business and its sister concern should be the same while accessing the e-Invoice production APIs.
- If a taxpayer has got his/her IPs already whitelisted for e-Way Bill APIs, he/she can use the same IP addresses to access the e-invoice system.