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:

1. Authentication 
2. Generate IRN 
3. Cancel IRN 
4. Get E-Invoice Details
5. Generate E-Way Bill Details
6. 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

1. Insurance and banking
2. Financial institutions
3. Non-Banking Financial Corporations
4. Goods Transport Agency
5. Taxpayers providing passenger transportation services
6. 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.