GST

Setting Up an API System for E-Invoicing

Setting Up an API System for E-Invoicing

Application Programming Interfaces are called APIs. Each and every taxpayer must make sure to register their API in the e-invoice. A software bridge called an API allows two apps to communicate with one another. To facilitate communication between taxpayers or their GSPs (GST Suvidha Providers) and the e-invoice system, e-invoicing uses APIs.

There are three different forms of API integration for e-invoices:

  • Direct integration
  • GSP integration
  • Third-party software solution integration

Need to use API under GST

The ease of the taxpayers is essential for the GST’s successful implementation. They can connect to the GST filing system via third-party software that offers a range of interfaces on computers, laptops, and mobile devices. The ease of use for taxpayers is increased by these third-party applications’ connection to the GST filing system via GST APIs.

Taxpayers that use e-invoicing will produce electronic invoices using their separate ERP systems and record them on the Invoice Registration Portal (IRP). The e-invoice procedure has been built by the IRP using an API mode. The GSPs and taxpayers may link these APIs into their current ERP systems and use those systems to immediately produce e-invoices.

Benefits of Setting up API system for E-invoicing

  • Less chances of Mistake: The preparation of e-way bills will be made easier by a one-time input for getting e-invoices, which also auto-fills the majority of the information in GSTR-1 and prevents the need for several human entries. Additionally, by using an API system for E-invoicing, taxpayers can avoid manually entering their data. As a result, it aids the entity in avoiding transmission and data input problems.
  • Effortless data transfer: APIs make it easier for data to be sent efficiently between the e-invoice system and the taxpayers’ accounting system. To send data to the e-way bill and GST portals1 and back to the ERP or accounting software, a taxpayer only has to enter the information once into its accounting program.
  • 24/7 self-help Service: The e-invoicing system offers a round-the-clock self-help option for the taxpayer.
  • Decrease in manual intervention: The e-invoice portal may be seamlessly integrated with an organization’s ERP or accounting system thanks to the API system for E-invoicing. The e-invoice API system makes it easier to send invoice information from the ERP to the e-invoice portal or the Invoice Registration Portal (IRP) automatically or on a set schedule. For reporting e-invoices, manual data entry may be avoided.

Importance of API in generating Invoice

An API is vital for the creation of an e-invoice. The information from the taxpayer’s Invoice must be entered into their accounting software. The Invoice Registration Portal (IRP) receives the data after it has been supplied over the API.

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The Invoice is delivered and returned to the taxpayer together with the digitally signed e-invoice and QR Code after being registered under the IRP and given an IRN. The Invoice is prepared for printing by the taxpayer’s system and includes an embedded IRN and QR Code.

What are the Requirements for using API for generating invoices?

The requirements for using an API system for E-invoicing are as follows:

  • The creation of invoices shall be done in an automated manner by the taxpayers and GSPs.
  • GSPs and taxpayers must make sure that there are no viruses, malware, intrusions, bots, or other harmful components in the traffic that leaves their end and arrives at the e-invoice system. If the NIC discovers any malicious traffic, the service could be suspended.
  • GSPs and taxpayers are required by the Indian government to abide by all IT Security standards and legal obligations.
  • GSPs/taxpayers are expected to adhere to the application and infrastructure security standards outlined by http://www.cert-in.org.in.
  • The GSPs and taxpayers must mandatorily obey the Information Technology Act 2000 (including 43A) and any amendment thereto.
  • To access the production environment, taxpayers and GSPs must declare a minimum of four Indian static IP addresses.
  • To employ various activities or services, a pre-production testing system is required.
  • On the e-invoice pre-production portal, GSPs and taxpayers must test their upgraded systems with a variety of activities and services.

How do you set up an API system for E-invoicing?

You need to follow the following steps to set up an API system for e-invoicing:

Step 1: First, you must log in to the official portal of e-invoice – https://einvoice1.gst.gov.in/.

Step 2: Now, click on API registration and go to IP whitelisting.

Step 3: It will take some time to verify your test report, and once it is verified, the IP whitelisting will be completed.

Step 4: The taxpayer’s registered mobile phone will get an SMS message including the client ID and client secret. The taxpayer can log in to the e-invoice site and choose “Resend” if the same is not received.

Note: This information pertains to a PAN that represents the entire Company. Therefore, these credentials must be used by all GSTINs registered under the same PAN.

How to add multiple users under the same PAN on the e-invoice portal?

Follow the below-mentioned steps to add multiple users under the same PAN:

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Step 1: The first step is the same: you need to log in to the portal – https://einvoice1.gst.gov.in/.

Step 2: In the left corner, you will find an option of ‘Create API User’. Click on that.

Step 3: Enter the client ID and client secret on the API registration page. Select “direct” or “through GST Suvidha Provider” as the registration option for API. The taxpayer will need to edit the GSP’s name from the drop-down list and hit submit if he chooses that option. The procedures for choosing a GST Suvidha Provider for e-invoicing are shown below.

Step 4: Create the username password, and confirm the password now, then save the information. The process can be repeated by the taxpayer for each additional GSTIN that is associated with the same PAN but requires a different set of credentials.

Conclusion

API system for E-invoicing can make the work easy and will keep the system managed. People can now create their own API by logging in to the official e-invoice portal.

Frequently asked questions

  1. How do I create an API in the GST portal?

    Step 1: Login and go to the 'My profile' area of the GST portal.
    Step 2: Click “Manage API access” in the quick-links menu.
    Step 3: Choose “Yes.”
    Step 4: A drop-down menu for the Duration will appear.

  2. How do I get GST portal API?

    • Click My Profile in the top-right corner of the page.
    • Select Manage API Access.
    • Under Enable API Request, choose Yes.
    • Select 30 days under Duration.
    • Select Confirm.

  3. What is GSTIN API?

    Businesses may now easily validate Goods and Services Tax Identification Numbers (GSTIN) using GST verification APIs. It provides a software interface that enables interaction between your programs and the GST database, enabling them to access information about a certain GST number, such as the taxpayer's name, address, and registration date.

  4. How do I give access to API?

    Navigate to the Endpoints > Services page for your project in the Google Cloud interface. Click the name of the API if there are several APIs available. Click Add Permissions to open the Permissions side panel if it isn't already. Enter the email address of a user, service account, or Google Group in the Add Members box.

  5. How do I verify my GST number using API?

    • After receiving the link to the enquiry form, go there and enter your information.
    • The GST verification API will then need to be integrated.
    • In the dialogue fields, enter the GSTIN number.
    • The API checks each GSTIN against the databases maintained by the GSTIN Department. The data may be extracted.

  6. How do I create an e-invoice step by step?

    • Creation of invoices
    • Generation of invoice registration numbers
    • Upload of invoices on the invoice registration portal
    • Digital Signature and QR Code Generation
    • IRP Validation of Invoice Information
    • Transmission of E-Invoice data to the E-Way Bill Portal and the GST System
    • Receipt of E-Invoice data back to the supplier's ERP

  7. How do you generate the IRN number?

    The calculation of the hash of the GSTIN of the document's (invoice, credit note, or debit note) creator, the financial year, the kind of document, and the document number, such as the invoice number, will determine the unique IRN. This hash will be exclusive to this combination and will follow the e-invoice standard.

  8. What is the format of the electronic Invoice?

    A typical invoice is a straightforward form used to charge for the goods or services you deliver. It will contain information on the goods or services, their costs, the acceptable payment options, and the date by which the Invoice is due. You may choose from a number of different formats and modify them to suit your needs.

  9. How do I create an e-invoice in ERP software?

    • Click Registration > Portal Login after seeing the IRP homepage.
    • In the e-Invoice Registration Form that appears, enter your Company's GSTIN and CAPTCHA code before clicking the Go button.
    • Enter the necessary company information, then click Send OTP to confirm it.

  10. What is the full form of API in the GST portal?

    API (Application Programming Interface) is a software interface that enables communication between two programs.

  11. What is API in GST?

    An application programming interface for GST is known as GST API. In order for two apps to communicate with one another, an API serves as a mediator.

  12. What is API in GST e-invoice?

    The e-invoice system may be communicated with by taxpayers or their GSPs via an application programming interface (API).

  13. What is GSP and API in GST?

    GSTN is committed to developing a service ecosystem. The GST Suvidha Provider (GSP) is a provider that offers cutting-edge solutions (Portal, Mobile App, Enriched API) either directly or through third parties.

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Read Our Article: An Overview of E-Invoicing Under GST

References

  1. https://www.gst.gov.in/

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