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GST E-Invoicing API

What is API full form in GST?

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

Who is eligible to use API?

In terms of the e-invoice system, APIs make it easier for taxpayers or GSPs (GST Suvidha Providers) to communicate and exchange data with the system.

Two software elements must interact with one another per the API specifications for the government to build a platform to offer GST services to taxpayers.

Various taxpayer operations, including submitting returns, registering, examining ledgers, making online payments, etc., are provided via the e-invoice system using RESTful web services.

Users of API

Taxpayers and GSPs can use API to comply with various GST requirements.

The types of taxpayers who are qualified to use APIs to create e-invoices are listed below:

Turnover in the previous fiscal year Date of Application
More than Rs. 500 crores 1 October 2020 (Required, with some exceptions*)
Greater than Rs. 100 crore but less than Rs. 500 crore 1 January 2021 (Required, with some exceptions*)
Greater than Rs. 50 crore April 1, 2021
Greater than Rs. 20 crore April 1, 2022
Greater than Rs. 10 crore October 1, 2022
Greater than Rs. 5 crore August 1, 2023

Turnover may increase at any time from 2017–18 through 2021–22. Financial institutions, NBFCs, the GTA, passenger transportation services, and cinema tickets are among the industries exempted from e-invoicing and QR code generation.

What is the purpose of using APIs under GST?

The success of the GST rollout depends on how convenient it is for taxpayers. They can connect to the GST filing system via third-party software that offers a variety of interfaces on computers, laptops, and mobile devices.

By utilising GST APIs, these third-party programs communicate with the GST filing system, boosting the convenience of the taxpayers.

Taxpayers will produce electronic invoices through their own ERP software and report them on the invoice registration portal under e-invoicing (IRP).

The IRP used an API mode to build the e-invoice process. The GSPs and taxpayers can incorporate these APIs into their current ERP systems and produce e-invoices straight from them.

Types of APIs

Currently, these are the different APIs available:

  • Authentication
  • Create a reference number for the invoice (IRN)
  • Cancel IRN
  • Get IRN information
  • Generate an e-way bill using an IRN
  • Get GSTIN information
  • Reject the e-way bill
  • Synchronise GSTIN data from CP (Common Portal)
  • Get e-way bill information using IRN
  • Obtain IRN information using document details
  • Medical API

How does API help in generating an e-invoice?

Using API is necessary for creating an electronic invoice. The taxpayer’s accounting software must be used to enter the information on the invoice, and data is sent via the API to the Invoice Registration Portal (IRP).

After being registered under the IRP and issued an IRN, the invoice is sent to the taxpayer with an electronic version that has been digitally signed and a QR code.

The invoice, which has the IRN and QR Code incorporated, is prepared for printing by the taxpayer’s system.

What are the benefits of using APIs?

  • APIs provide seamless interaction between the taxpayer’s ERP and accounting system and the e-invoice platform.
  • APIs will prevent the duplication or double entry of an invoice/IRN because the outward supply invoices are first entered in the taxpayer’s ERP before being transferred to the e-invoice system.
  • APIs assist in the elimination of data entry errors in electronic bills.
  • The taxpayer only needs to submit the information once in their ERP, and the APIs will then transfer it to the e-way bill and GST portals.

Prerequisites for e-invoice API

The following are the requirements for using e-invoicing APIs:

  • Taxpayers and GSPs must automate the creation of invoices.
  • GSPs and taxpayers must ensure that no viruses, malware, intrusions, bots, or other harmful components are present in the traffic that leaves their end and arrives at the e-invoice system. Any malicious traffic could result in the service being suspended if the NIC identifies it.
  • GSPs and taxpayers must follow the Government of India’s regulations and IT security standards.
  • GSPs/taxpayers must adhere to the application and infrastructure security standards outlined by http://www.cert-in.org.in.
  • The Information Technology Act 2000 (including 43A) and its revisions must be complied with by GSPs and taxpayers.
  • Taxpayers and GSPs must declare a minimum of four Indian static IP addresses to access the production environment.
  • A pre-production infrastructure for testing is required to use different kinds of activities or services.
  • On the e-invoice pre-production portal, GSPs and taxpayers must test their upgraded systems with various activities and services.

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