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Published on:

March 18, 2025

Viraaj Vashishth

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Biz with Swipe

Tech

Common Invoicing API FAQs: Answers to Your Top Questions

Automation for invoicing is crucial from a productivity and compliance standpoint today, especially in the context of the modern digital economy. One of the notable advancements in this regard is E-Invoice API which permits an effortless synchronisation of an entity’s invoicing and accounting systems to government portals. Nonetheless, there are many businesses and developers who have questions concerning its implementation, advantages, and legality. The aim of this article is to clear out the most common invoicing API questions by providing the clearest answers so businesses understand how leveraging E-Invoice API can foremost assist them.

1. What is an E-Invoice API?

E-invoice API is an Application Programming Interface that permits a business to issue, verify, and make a record of an invoice over a stipulated system electronically. It enables a company’s billing system to interface directly with the e-invoicing portal provided by the governing body. With the API, businesses can and will automatically submit invoices with zero human effort resulting in reduced errors and automated compliance with tax laws.

2. How Does an E-Invoice API Work?

The E-Invoice API connects an enterprise’s ERP or accounting software and the Invoice Registration Portal (IRP). Here is how it works:

1. An invoice is created by the business in the billing software.

2. The invoice information is sent to the IRP through the API.

3. The IRP approves the invoice, issues the Invoice Reference Number (IRN), and signs it.

4. The invoice is sent back to the business and is shared with the GST portal and e-way bill system. This approved invoice is shared with the GST portal and e-way bill system.

3. Why is E-Invoicing API Important for Businesses?

The authorities have made the integration of E-Invoice APIs file mandatory for businesses with turnover above certain thresholds. This increases transparency, decreases tax avoidance, and makes compliance easier. Some advantages are:

1. Automation: Reduces data entry, hence minimizing errors.

2. Rapid Processing: Invoices are verified instantly.

3. Compliance: Makes sure businesses are compliant concerning tax regulations.

4. Precision: Reduces the mismatch of invoices and GST returns.

4. Who Needs to Integrate With the E-Invoice API?

With the new integration, implementing the E-Invoice API is compulsory for those businesses which have the prescribed government turnover limit. In accordance with the most recent GST provisions, companies exceeding an annual turnover of ₹5 crores are mandated to use the e-invoicing system. On the other hand, even micro businesses can benefit from the API invoicing for time saving and precise invoicing.

You Should Also Read About: A step-by-step guide to E-Way Bill integration

5. What do Users Need to Take Care of When Integrating an E-Invoice API?

Businesses will require to have the following in place prior to integrating with an E-Invoice API:

1. A registered entity holding a GST applicable for e-invoicing

2. An ERP or a billing software with API capability

3. A credentialed API from the GST portal

4. Satisfy data security policies

6. Is There Any Other Difference Between E-Invoicing And Invoice Generation In Digital Form?

Certainly, e-invoicing implies invoices issued and signed via the Government’s IRP while digital invoice encapsulates all kinds of electronic invoice. E-Invoices are always valid and must be to most business entities while digital invoices are not guaranteed to comply with the tax regulations.

7. What Information is Mandatory in an E-Invoice API Request?

In passing invoice information through the E-Invoice API, the following details are essential:

Field	Description
Supplier GSTIN	GST number of the seller
Buyer GSTIN	GST number of the purchaser
Invoice Number	Unique identifier for the invoice
Invoice Date	Date of issue of the invoice
HSN Code	Harmonized System of Nomenclature code for goods/services
Tax Details	GST, IGST, CGST, SGST, and applicable tax rates
IRN	Invoice Reference Number (generated by IRP)

8. What are the Common Mistakes with the E-Invoice API Integration?

Companies usually run into problems when attempting to use the E-Invoice API. The most common mistakes are:

1. Invalid GSTIN: Submitting the wrong GST number ends in decline.

2. Duplicate IRN Generation: Trying to create an IRN for an invoice that has been validated already.

3. Incorrect HSN Code: An HSN code that is invalid or missing altogether.

4. Data Mismatch: The invoice and GST return’s information does not correlate.

To prevent these mistakes, companies should focus on entering the data correctly and adhering to the government’s schema guidelines.

9. Is E-Invoice API Integration Safe?

Definitely, E-Invoice API is safe as it incorporates high-security measures such as encryption and authentication to safeguard sensitive data from unauthorized access. Businesses are required to request API details which will only be sent over a secured channel.

10. Can a Business Change an E-Invoice after it has been Created?

After an e-invoice is created and elicits validation there is no further editing that is possible. In cases where there has to be a mistake made a business can cancel the invoice or create a new one. In the case of small changes, they can be made via credit and debit notes.

11. What are the Common Mistakes with the E-Invoice API Integration?

Companies usually run into problems when attempting to use the E-Invoice API. The most common mistakes are:

1. Invalid GSTIN: Submitting the wrong GST number ends in decline.

2. Duplicate IRN Generation: Trying to create an IRN for an invoice that has been validated already.

3. Incorrect HSN Code: An HSN code that is invalid or missing altogether.

4. Data Mismatch: The invoice and GST return’s information does not correlate.

To prevent these mistakes, companies should focus on entering the data correctly and adhering to the government’s schema guidelines.

12. What Happens When an E-Invoice is Not Generated?

The repercussions of failing to create an e-invoice for companies required to do so through the e-invoice API are:

1. Penalties for Non-Compliance: Failure to create an e-invoice could lead to penalties under the law as per GST guidelines.

2. Rejection of Invoice: An invoice that does not have a corresponding IRN will be rejected.

3. Warnings Issued: For non-compliance the tax office could send out notice(s).

13. How Can Businesses Streamline E-Invoice API Integration?

Seamless integration can be achieved through:

1. ERP System Integration: Connecting the API to previously acquired ERP or accounting software.

2. Third-Party API Providers: Associating with GSPs to offer customization.

3. Cloud-Based E-Invoicing Solutions: Making use of SaaS-based invoicing that enables E-Invoice API integration.

14. How Can SWIPE Help With E-Invoice API Integration?

For businesses searching for a simple yet effective invoicing solution, the SWIPE advanced billing and invoicing application offers a variety of functions and features. SWIPE helps businesses to:

1. Effortlessly generate e-invoices with point-and-click simplicity.

2. Automatically submit the API to the government portal.

3. Validate data submission in real-time, thus eliminating manual errors.

4. Ensure business compliance with GST law and regulations.

5. Handle invoices, payments, and even taxes all in the same place with a single click.

With SWIPE’s invoicing and billing applications, companies can improve their efficiency while still being compliant with the e-invoicing system.