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Choosing a GST Suvidha Provider for E-Invoicing API Connectivity

This article outlines the process for businesses to connect with the e-invoice portal and select a GST Suvidha Provider (GSP) for API integration. It details various methods for interacting with the Invoice Registration Portal (IRP), including direct API access and GSP-assisted connectivity, alongside recent e-invoicing mandate updates. The guide also provides a step-by-step procedure for GSP selection within the e-invoice system, emphasizing the benefits and requirements for efficient e-invoicing compliance.

📖 3 min read read🏷️ e-Invoicing

Businesses must register with the e-invoice portal to commence e-invoicing procedures. This involves creating invoices within their accounting systems and subsequently submitting them to an Invoice Registration Portal (IRP), which can be an official GSTN-approved IRP or NIC's e-invoice portal. The primary goal is to generate an Invoice Reference Number (IRN) for each e-invoice.

Recent Updates on E-Invoicing Mandates

May 10, 2023 The Central Board of Indirect Taxes and Customs (CBIC) announced the sixth phase of e-invoicing implementation. Consequently, as of August 1, 2023, taxpayers with an annual turnover exceeding ₹5 crore in any financial year since 2017-18 are required to issue e-invoices.

May 6, 2023 The GST department temporarily extended the deadline for reporting older e-invoices on IRPs by three months, previously set at 7 days from the invoice date. A new implementation date is yet to be announced.

April 13, 2023 An advisory issued by GSTN on April 12 and 13, 2023, mandated that taxpayers with an annual turnover of ₹100 crore or more must report tax invoices and credit/debit notes to the IRP within seven days of their issuance, effective May 1, 2023.

August 1, 2022 Through notification no. 17/2022, the e-invoicing system for Business-to-Business (B2B) transactions was expanded to include entities with an annual aggregate turnover ranging from ₹10 crore to ₹20 crore, effective October 1, 2022.

Methods for Connecting with the Invoice Registration Portal (IRP)

All GST-registered taxpayers who need to generate IRNs for e-invoices are required to establish a connection with an IRP or the e-invoice portal. Several methods are available for taxpayers to connect with the IRP:

  1. Utilizing Existing E-way Bill API Access: If a taxpayer is already registered on the e-way bill portal, the same login credentials can be used to access the e-invoice portal. For those already using GST Suvidha Provider (GSP) services for the e-way bill system, re-selection of a GSP for the e-invoice portal is not necessary, though changing or adding a new GSP remains an option.
  2. When E-way Bill API Access is Unavailable: In situations where e-way bill API access is not available, taxpayers must first complete registration on the e-invoice portal. Once registered, they can choose between two primary API integration methods:
    • Direct API Access: Taxpayers with an annual turnover exceeding ₹5 crore are eligible for direct API integration with the IRP. This involves testing the API integration within a sandbox environment (https://einv-apisandbox.nic.in/) and then submitting a test summary report to support.einv.api@gov.in. Upon successful verification, production API details will be provided. This approach facilitates a direct, unmediated data flow, though market studies indicate an approximate initial cost of ₹5 lakh, plus ongoing expenses.
    • API Access through a GSP: This method offers the quickest way to connect with the IRP, providing advantages such as scalability and real-time support. A GSP ensures a stable and high-performance connection, crucial for enterprises handling large transaction volumes. While engaging GSP services incurs an additional cost, it guarantees uninterrupted connectivity with the GST portal. GSPs often offer value-added services, including managing sales and purchases, GST filing, and trend analysis.

Selecting a GST Suvidha Provider (GSP) for API Integration

The process for selecting a GSP to facilitate API integration with the e-invoice system involves several steps:

Step 1: Log in to the e-invoice portal.

Step 2: From the main menu, navigate to 'API registration.' Under the User Credentials section of the API registration menu, click on the 'Create API User' tab. An OTP will be dispatched to the registered mobile number. After entering this OTP, the API registration form will become accessible.

Step 3: Within the API registration form, select 'through GSP' to proceed with API integration via a GSP. The desired GSP name can be chosen from the provided drop-down list.

Step 4: Define a unique username and password for the selected GSP, then click 'submit.' This action adds the GSP to your approved list. It is then necessary to share these credentials with your chosen GSP to enable the transmission of your e-invoice data to the e-invoice system through their services.

Frequently Asked Questions

What is Goods and Services Tax (GST) in India?
GST is a comprehensive indirect tax introduced in India on July 1, 2017. It replaced multiple cascading taxes levied by central and state governments, aiming to simplify the tax structure and create a unified national market.
Who is required to register for GST?
Businesses exceeding a certain annual turnover threshold (which varies by state and type of goods/services) are generally required to register for GST. Voluntary registration is also available for businesses below the threshold.
What are the components of GST in India?
GST in India has four components: Central GST (CGST) levied by the Centre, State GST (SGST) levied by states, Integrated GST (IGST) for inter-state transactions and imports, and Union Territory GST (UTGST) for Union Territories without legislatures.
How does Input Tax Credit (ITC) work under GST?
Input Tax Credit allows businesses to claim credit for the GST paid on purchases of goods and services that are used for business activities. This mechanism prevents the cascading effect of taxes, where tax is paid on tax.
What is an e-way bill under GST?
An e-way bill is an electronic document required for the movement of goods exceeding a certain value (typically ₹50,000) from one place to another. It ensures that goods being transported comply with GST rules and helps prevent tax evasion.

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