With an increase in e-Invoicing subscribers, businesses are now looking for an e Invoicing software, which can be fast and automated.
Small businesses whose invoices are less in number can quickly generate the e-Invoices manually from the Invoice Registration Portal (IRP).
However, for businesses of medium & large sizes, it is practically challenging and time-consuming to understand & get familiar with 'how to generate e Invoice' on IRP portal for a large number of transaction invoices for this business.
For such medium & large businesses, the government has allowed Direct API Integration based e-Invoicing under GST. It is feasible for medium & large businesses and for all the small & micro enterprises who want to ease their e-Invoicing process.
This article will guide you through the essential details about the e-Invoice API integration for e-Invoicing.
What is an e-Invoicing API?
API is a technical term and can be challenging to understand for some taxpayers.
Let us readily understand this term.
APIs function as a communication channel between the following two entities: Taxpayers & IRP OR GSPs & IRP
APIs work as a bridge between taxpayers and the e-Invoicing system to facilitate data exchange between the taxpayers and the IRP portal.
Any business eligible for e-Invoice under GST can use these APIs.
But the critical point to note is that he has to get these e-Invoicing API from a government-appointed GST Suvidha Provider like GSTHero.
Later in the article, we will see different types of e-Invoice API integration available for the taxpayers.
Pre-requisites for e-Invoicing API Integration
Types of e-Invoicing API Integration
- Direct API Integration
- GSP API Integration
What is 'Direct API Integration' for e-Invoicing under GST?
The GST Network has allowed direct API access for the taxpayers who have the prescribed turnover.
To directly use these APIs, the taxpayer needs to follow the simple steps shown below:
Firstly, test the API integration on the pre-production system. This testing should be done according to the parameters prescribed in the Sandbox portal developed by GSTN.
Post API testing, the successful and failure cases must be uploaded to the test result template.
With the test result template, the taxpayer should also send the IP addresses which the taxpayer wishes to use for further operations. The e-Invoice portal can allow a maximum of 4 IP addresses to be whitelisted for the API integration.
The taxpayer must also provide the contact number of the person or team who will be handling the technical end and the integration process.
After a thorough evaluation, the APIs shall be provided to that particular business by the e-Invoice API portal.
From the steps provided above, it may seem a bit tedious process to get the e-Invoicing APIS directly.
Many businesses are not ready to invest so much time getting the e-Invoice APIs directly from the portal.
That is why many businesses prefer the other type of API integration, i.e., GSP API Integration.
What is GSP API Integration for e-Invoicing under GST?
What is a GSP?
- GSP stands for ‘GST Suvidha Provider.'
- The government appoints GSPs to provide the GST services directly to the taxpayers and the businesses.
- When execute GST return filing through a GSP's solution, he has no reason to worry about the compliances issues as the GSPs like GSTHero are always 100% compliant with the rules and regulations of GST.
- GSPs like GSTHero are authorized to provide e-Invoicing APIs to businesses and taxpayers.
GSP API Integration
GSP is the most accessible medium for businesses to access the APIs required for e Invoice generation.
The advantage of getting APIs from the GSP like GSTHero is that these APIs are modified with advanced features.
These APIs can directly be used with the existing ERPs of the taxpayers to connect to the IRP portal directly.
The taxpayer will now generate e-Invoice directly from the ERP without even once visiting the IRP portal.
GSTHero’s e-Invoicing APIs
GSTHero has a wide range of APIs that can ease your e-Invoicing journey.
Why is GSTHero’s APIs the right choice for your business?
Interested in GSTHero’s APIs?
Let’s connect and show you the demo of our e-Invoicing solutions.