Steps to select GST Suvidha Provider (GSP) for e-Invoicing API Access

A taxpayer needs to register on the e-invoice portal to start with e-invoicing. He will have to generate invoices on his accounting system and upload the same on IRP (Invoice Registration Portal) such as Clear IRP, GSTN-approved official IRP and NIC’s e-invoice portal.

Latest Updates on e-Invoicing

10th May 2023
CBIC notified the 6th phase of e-invoicing. Hence, taxpayers with ₹5 Cr+ turnover in any financial year from 2017-18 shall issue e-invoices w.e.f 1st August 2023.

06th May 2023
The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months. Further, the department is yet to announce the new implementation date.

13th April 2023
The GSTN released an advisory on 12th and 13th April 2023 stating that taxpayers with an annual turnover of Rs.100 crore and more must report tax invoices and credit-debit notes to the IRP within 7 days from the date of issue of the invoice/CDN from 1st May 2023.

1st August 2022 
The e-Invoicing system for B2B transactions has now been extended to those with an annual aggregate turnover of more than Rs.10 crore up to Rs.20 crore starting from 1st October 2022, vide notification no. 17/2022. 

Possible modes of connecting with the IRP or e-invoice portal

All registered GST taxpayers who need to generate IRN for e-invoices should connect with the IRP (invoice registration portal) or e-invoice portal. A taxpayer can connect with the IRP with the below-mentioned modes:
 

1. In the case of the e-way bill, API access is available: If a taxpayer is already registered on the e-way bill portal, he can use the same login credentials to login onto the e-invoice portal. If a taxpayer is already using GSP services on the e-way bill system, there is no need to select the GSP again on the e-invoice portal. But one can change or add the new GSP on the e-invoice portal.
2. In case e-way bill API access is not available: In this case, the taxpayer will have first to register himself on the e-invoice portal, as per the process given in our article- “Steps for registration on the e-invoice portal”.
   1. Direct API access: A taxpayer with a turnover higher than Rs.5 crore can use direct API to connect with IRP. For this direct API integration, a taxpayer needs to test the API integration in a sandbox environment (https://einv-apisandbox.nic.in/) and then send the test summary report support.einv.api@gov.in. After verification, the taxpayer will be provided API production details.  
      This method allows smooth flow of data without the involvement of a third party. But the cost of this direct integration is approximately Rs.5 lakh as per market study and recurring expenses.
   2. API access through GSP: This is the fastest way to connect with IRP because it provides scalability along with real-time support. An enterprise can work with massive volumes as the GSP ensures stable connection with fast performance. Using the service of GSP involves an additional cost, but it provides an uninterrupted connection with the GST portal.  
      GSPs also provide specific value-added services like managing the sale/purchase, GST filing, trend analysis, etc.

Selection of GSP for API access
 

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

Step 2: From the main menu, select ‘API registration’. Click on the ‘Create API User’ tab under User Credentials in the API registration menu.

A taxpayer will receive an OTP on the registered mobile number. On entering the OTP, the API registration form will open. 
 

Step 3: In the API registration form, select ‘through GSP’ to integrate the APIs through GSP. The GSP name can be selected from the drop-down list.

Step 4: Select the username and password for GSP and click submit. This will add the GSP to your GSP list. Share this username and password with your GSP so that you can send your e-invoice data through GSP to the e-invoice system.