E-Invoicing API – Type, Purpose, & Eligibility
E-invoicing API is a type of software that helps in exchanging and communicating the data between GSP/ASP and IRP flawlessly. This will help the taxpayer to stay GST compliant. So, in this blog, we will discuss e-invoicing API eligibility and its purpose.
Types of APIs
There are currently 6 different types of e-invoicing API:
- Authentication
- Generate IRN
- Cancel IRN
- Get E-Invoice Details
- Generate E-Way Bill Details
- Get GSTIN details
E-Invoicing API Purpose
The purpose behind the introduction of e-invoicing API is to ease the burden of GST compliance of taxpayers. Using these APIs, a taxpayer can take the leverage of different functionality. Moreover, using the e-invoicing API a taxpayer can even interact with IRP on the go using a mobile enhancing the taxpayers’ experience. However to generate an e-invoice a taxpayer first needs to generate an invoice on their ERP and then need to report the same on IRP. And integrating these e-invoicing APIs taxpayers can generate e-invoice on their ERP without interacting directly with the IRP servers.
E-Invoicing API Eligibility
Here is the list of eligible taxpayers who can utilize e-invoicing API to generate e-invoice and adhere to the e-invoicing mandate:
S.No. | Eligible Taxpayers | Date of Implementation |
1 | Whose aggregate turnover during any preceding financial year (2017-18 onwards) exceeds INR 500 crores | 1st October 2020 |
2 | Whose aggregate turnover during any preceding financial year (2017-18 onwards) exceeds INR 100 crores | 1st January 2021 |
3 | Whose aggregate turnover during any preceding financial year (2017-18 onwards) exceeds INR 50 crores | 1st April 2021 |
4 | Whose aggregate turnover during any preceding financial year exceeds INR 20 crores | 1st April 2022 |
Note: There is a list of taxpayers who are exempted from the e-invoicing mandate such as
- Insurance and banking
- Financial institutions
- Non-Banking Financial Corporations
- Goods Transport Agency
- Taxpayers providing passenger transportation services
- Movie tickets in multiplex
How to Generate an E-Invoice using E-Invoicing API?
E-invoicing API plays a vital role in generating an e-invoice using ERP as it interacts directly with the IRP. In simple words, once a taxpayer generates an invoice in their ERP, e-invoicing API sends it across to the IRP for authentication data. After the data gets authenticated, IRP generated IRN using a hash generation algorithm and sends back the e-invoice along with the signed QR code. Using this, the taxpayer can easily print out the e-invoice generated using e-invoicing API or send it to their customers easily.