Modes of E-Invoicing API Integration

Application Programming Interface (API) facilitates the interaction between the taxpayer and the IRP. So, in this blog, we will discuss Modes of E-Invoicing API Integration.

Modes of E-Invoicing API Integration

Direct API Integration

As per the recent mandate businesses with an annual turnover of more than INR 20 crores need to implement e-invoicing from 1st April 2022. To follow the mandate, the taxpayer needs APIs to integrate with their ERPs that will communicate with the IRP directly. Using API integration on their ERP, the taxpayer can upload their invoices directly and generate IRN in real-time. The expense involved in the direct integration of API is approximately INR 5-7 lakhs.

To use this mode of e-invoicing API integration, the taxpayers need to:

1. The taxpayer first needs to test the API integration via sandbox testing.
2. Post this; a test rundown report, in the prescribed arrangement, needs to be sent to support.einv.api@gov.in.
3. Once the report is successfully verified, the taxpayer will get the detail about the API user credential.
4. Using this user credential the taxpayers would then be able to sign into the IRP.

Note 1: The taxpayer can use the same user credentials that he got at the time of integrating e-way bill API with ERP.

Note 2: Using the Registration Option available on the portal, the taxpayer can also apply for new registration.

Merits of Direct API Integration

1. Direct interaction between GSTN and Taxpayer,
2. Data security
3. Accuracy and efficiency

Demerits of Direct API Integration

1. Realigning ERP system for regular API updates.
2. Difficulty in feeding data as per the e-Invoice schema without expert assistance.

GSP Based API Integration

Numerous businesses consider the GSP Based API Integrations as one of the easiest and fastest methods for implementing the e-Invoicing process. Most of the business choose GSP based API integration as it is easily scalable and provide real-time support. Moreover, certain GSPs provide different VAS (Value-Added Services) such as expert assistance and data back-up, as we already know that IRP does not hold the e-invoice data for more than 24 hours. So, you need to select the best-fit e-invoicing service provider for your business so that you can take care of other tasks such as cash flow for your business.

It shall be noted the steps involved remain the same as we have listed out earlier in this blog. The lone difference would be that the GSP will send the sandbox testing report to support.einv.api@gov and post verification of details the GSP will get API creation details.