Integrating India GST Reporting, E-Invoicing, And ...

This blog is a guide to the integration between your S/4HANA system and DRC Cloud Edition (a service running on SAP BTP) for India compliance processes including GST Reporting, E-Invoicing (IRP), and E-Waybills. Whether you are running S/4HANA Cloud Public Edition or S/4HANA Cloud Private Edition, the overall integration pattern is the same — S/4HANA connects to DRC Cloud Edition, which routes submissions through a GSP to the relevant government platform (GSTN for GST returns and NIC/IRP for e-invoicing/e-waybill flows). What differs is how the S/4HANA side is configured. This blog covers both editions, the shared DRC setup, and sandbox onboarding guidance for testing.

Architecture

S/4HANA Cloud Public Edition   S/4HANA Cloud Private Edition
         │                                  │
         │  (SAP_COM_0854 integration)      │  (OAuth 2.0 + RFC)
         └──────────────┬───────────────────┘
                        │
                        ▼
          DRC Cloud Edition (hosted on SAP BTP)
                        │
                        │  (GSP API calls)
                        ▼
              GSP (e.g., Vayana, Excellon)
                        │
                        ▼
                   GSTN Portal

Component Role

S/4HANA Cloud Public Edition	Source of GST transaction data; connects to DRC via Communication Arrangement (SAP_COM_0854)
S/4HANA Cloud Private Edition	Source of GST transaction data; connects to DRC via OAuth 2.0 client + RFC connection
DRC Cloud Edition (on SAP BTP)	SAP BTP-hosted service that orchestrates GST report submission; manages GSP communication, service bindings, and connectivity back to S/4HANA
GST Suvidha Provider (GSP)	GSTN-certified intermediary that relays API calls between DRC Cloud Edition and GSTN
GSTN	Government portal that stores and validates GST returns

Scope Items Required in S/4HANA Cloud Public Edition

Note: The scope items below (5XU and 78L) apply to S/4HANA Cloud Public Edition only and are activated via SAP Central Business Configuration. For S/4HANA Cloud Private Edition, the corresponding India capabilities are activated through SAP Best Practices scope items (for example, INV12 for 2025). Refer to SAP Best Practices for SAP S/4HANA Cloud Private Edition (India) for scope item details and activation guidance specific to your release.

Since this blog scope includes India GST reporting, activate both scope items before any configuration work begins:

Scope Item Description

5XU	Document and Reporting Compliance — enables India GST statutory reporting (GSTR-1, GSTR-3B, GSTR-6, ITC04, etc.) via Run Statutory Reports
78L	SAP Document and Reporting Compliance, Cloud Edition Integration — activates the communication framework between S/4HANA Cloud and DRC Cloud Edition

Step 1: DRC Cloud Edition Setup

DRC Cloud Edition runs on SAP BTP. This step covers provisioning the service and configuring it for India GST — the service binding URL generated here is needed in S/4HANA.

1.1 Initial Setup (One-time)

Option A – Booster (Recommended): (SAP Help: Initial Setup)

In BTP Cockpit, go to your global account → Boosters.
Search for “Set Up an Account for SAP Document and Reporting Compliance, Cloud Edition” and run it.
The booster automatically: creates the subaccount, configures entitlements, subscribes to the application, creates the service instance, and assigns role collections.

Option B – Manual Setup:

1.1.1 Create a Subaccount

Create a subaccount in a region that supports India GST processes. Refer to Subaccount Regions for Processes in the Cloud Edition in SAP Help to verify region availability.

1.1.2 Configure Entitlements

Assign the SAP Document and Reporting Compliance, cloud edition service entitlement to your subaccount and add the appropriate service plans. Two plans are relevant for S/4HANA integration:

Service Plan Purpose

standard	Production use — DRC connects to the production environment of GSTN / NIC
test	Testing use — DRC connects to the sandbox/test environment of GSTN / NIC

Important: Use separate subaccounts for your test and production environments, each with the corresponding service plan. Using the test plan ensures all API calls go to the GSTN/NIC Sandbox and never reach the production system. See Cloud Edition Service Plans for a full overview.

For the service instance itself, one plan is available regardless of subscription: Default.

1.1.3 Subscribe to the Application

In your subaccount → Services → Service Marketplace → find SAP Document and Reporting Compliance, cloud edition → Subscribe. Select the plan that matches the purpose of your subaccount (standard for production, test for testing).

1.1.4 Assign Role Collections

Assign the predefined DRC role collections to administrators and report operators.

1.1.5 Create a Service Instance

In Services → Instances and Subscriptions, create a service instance for SAP Document and Reporting Compliance, cloud edition. This instance is the connection endpoint used by S/4HANA.

Note: If you have already completed initial setup for any other DRC process/country, you do not need to repeat it — the same service instance can serve multiple processes, provided they are in the same subaccount region.

1.2 Activate India Processes

Open the DRC Cloud Edition Fiori Launchpad from BTP.
Navigate to Manage Processes → Activating Processes.
Activate the relevant India processes for your subaccount:

Process Covers

GST Return (India)	All India GST returns: GSTR-1, GSTR-1A, GSTR-3B, GSTR-6, ITC04 — no need to activate individual return types separately
E-Invoices (India)	Electronic invoice registration with NIC (National Informatics Centre) via GSP
E-Waybills (India)	Electronic waybill generation and submission with NIC via GSP

Activate only the processes relevant to your deployment. Each is independent — you can activate GST Return (India) without activating E-Invoices (India), or any combination that fits your business needs.

1.3 Create Service Binding

In BTP Cockpit → your subaccount → Services → Instances and Subscriptions.
Select the DRC service instance.
In the Service Bindings panel, click Create:

Field Value

Binding Name	A descriptive name (e.g., `india-gst-s4hana-binding`)
Process	Other Processes
Authentication Type	Choose one of the two supported options below

Authentication Type options:

After creation, open the binding and copy the URL — this is the DRC endpoint URL you will configure in S/4HANA's Communication System.

Step 2: S/4HANA Cloud Public Edition Configuration

2.1 Configure Business Places and GSP Settings (Mandatory — per Business Place)

Step 1 — Assign GSTIN to Business Place:

Use SSCUI 101326 (Define Business Places for Goods and Services Tax for India) to assign the GSTIN registered for each Business Place and Company Code.

Step 2 — Maintain GSP Name:

In Configuration Environment, search for “Maintain Service Provider for eInvoice” and enter the GSP Name (e.g., vayana, excellon) for each Business Place — this is the certified intermediary DRC will route API calls through.

Note: In the NIC portal, you register a User ID against each GSTIN. This GSTIN + GSP pairing drives how the system routes all API calls via DRC Cloud Edition. If you are also using eWay Bill, maintain the same configuration in Maintain Service Provider for eWay Bill.

2.2 Export SSL Client Certificate

In the S/4HANA Fiori Launchpad, open Communication Systems.
Locate (or create) the system entry and export the SSL client certificate.
This certificate will be uploaded into DRC Cloud Edition to establish mutual TLS trust.

2.3 Create Communication System in S/4HANA

Open the Communication Systems app.
Create a new Communication System:

Host Name: the DRC service binding URL copied from Step 1.3.
Upload or reference the DRC-side certificate for trust.

2.4 Create Communication Arrangement in S/4HANA

Open the Communication Arrangements app.
Create a new arrangement for communication scenario SAP_COM_0854 (Document and Reporting Compliance, Cloud Edition Integration — requires scope item 78L). See Creating Communication Arrangements.
Select the Communication System from Step 2.3.
Fill the Integration Scenario field according to your process setup in this communication scenario.
Save. The system generates an inbound service URL — note this down for Step 3.2.

Critical: Only one Communication Arrangement is permitted per communication scenario. If one already exists, review it before creating a new one.

Step 2B: S/4HANA Cloud Private Edition Configuration

Note: Skip this section if you are using S/4HANA Cloud Public Edition — see Step 2 above. Private Edition does not use Communication Systems or Communication Arrangements. Instead, it connects to DRC via an OAuth 2.0 client with an RFC connection.

See Integrating All Other Processes and Countries/Regions with SAP S/4HANA or SAP S/4HANA Cloud Private … for the full guide.

2B.1 Configure Business Places and GSP Settings

Same as Step 2.1 for Public Edition:

Use SSCUI 101326 (Define Business Places for Goods and Services Tax for India) to assign the GSTIN to each Business Place and Company Code.
In Configuration Environment, search for “Maintain Service Provider for eInvoice” and enter the GSP Name (e.g., vayana, excellon) per Business Place.

2B.2 Authentication

For this integration flow, configure OAuth 2.0 authentication for the connection from Private Edition to DRC Cloud Edition.

OAuth 2.0

In this approach, DRC issues OAuth client credentials that your S/4HANA system uses to authenticate every call. This requires an RFC connection (SM59).

Step 1 — Configure OAuth 2.0 Client Profile:

Before configuring the OAuth 2.0 client, create the required client profile in your S/4HANA system. In SAP Help for this integration flow, the OAuth 2.0 client profile is EDOC_EU_OAUTH.

Step 2 — Configure OAuth 2.0 Client:

Use the credentials from the service binding created in Step 1.3 (Authentication Type: oAuth2

In your S/4HANA system, open transaction OA2C_CONFIG (OAuth 2.0 Clients) and create a new entry.
Select the OAuth 2.0 Client Profile created in Step 1.
Fill in the following fields using values from the service binding details in BTP:

Field Source

OAuth 2.0 Client ID	`clientid` from service binding
Client Secret	`clientsecret` from service binding
Token Endpoint URL	Token URL from service binding

See Configuring the OAuth 2.0 Client.

Step 3 — Configure Secure Connection:

Download the server root certificate from the DRC service binding in BTP.
In your S/4HANA system, open transaction STRUST (SSL Client PSE) and import the certificate into the appropriate SSL Client PSE.
This establishes TLS trust from your S/4HANA system toward DRC Cloud Edition.

See Configuring a Secure Connection.

Step 4 — Create RFC Connection:

In your S/4HANA system, open transaction SM59 (Configuration of RFC Connections).
Create a new HTTP connection to an external server with the following settings:

Field Value

Connection Type	G (HTTP Connection to External Server)
Target Host	DRC service binding URL from Step 1.3
Logon Procedure	OAuth 2.0 — select the client configured in Step 2

Activate the RFC connection. The system generates an inbound service URL — note this down for Step 3.2.

See Managing RFC Connections for SAP Document and Reporting Compliance, Cloud Edition.

2B.3 Managing Destination Certificates

To establish the return path from DRC back to S/4HANA, you first manage destination certificates in the DRC setup. This step is performed in SAP BTP as part of the overall DRC → S/4HANA connectivity setup.

In the DRC setup (under Establishing Connection from Cloud Edition to Business System), navigate to Managing Destination Certificates.
Generate or upload a certificate that authenticates the DRC Cloud Edition to your S/4HANA system.

Reference: Establishing Connection from Cloud Edition to Business System

2B.4 Set Up Connectivity (DRC → S/4HANA)

In the DRC setup, go to Setting Up Connectivity.
Configure the connection from DRC Cloud Edition to your S/4HANA system using the inbound service URL:

Public Edition: the URL generated when you saved the Communication Arrangement in Step 2.4.
Private Edition (OAuth 2.0): the URL from the RFC connection activated in Step 2B.2, Step 4.

This allows DRC to push filing status updates and authority responses back to S/4HANA.

2B.5 Map Business Systems

In DRC, open the Map Business Systems app.
Obtain your Own SAP Cloud System ID from S/4HANA (via Getting Your Own SAP Cloud System ID).
Map your S/4HANA system to the destination configured in Step 3.2 so DRC knows how to route data between external communication parties and your business system.

2B.6 SSL Client Certificate Upload

Applies only when your service binding authentication is User Provided X.509 Certificate. If you use OAuth 2.0 authentication, DRC authenticates using OAuth token flow and this upload is not required.

In DRC Cloud Edition, navigate to the certificate management section.
Upload the SSL client certificate exported from S/4HANA.
DRC uses this certificate to authenticate inbound messages for that certificate-based setup.

Step 3: Configure GSP Communication Settings

This is done in the Manage Communication Settings – External Party app within DRC Cloud Edition. Configure settings for each India process you have activated. Each process requires two communication settings: one base setting for the authority channel, and one GSP-specific setting.

Reference: Process-Specific Settings

GST Return (India)

Step 1 — Base GSTN communication setting:

Field Value

Communication Type	GST Return (IN)
Identification Number	Your GSTIN number
Authentication	One-Time Password (OTP)
Additional Properties	Add service provider name (as maintained in S/4HANA) + Username registered in the GSTN Portal

Step 2 — GSP-specific communication setting:

For the second communication setting, select the communication type according to your GSP:

If using GSP Vayana:

Field Value

Communication Type	GSP Vayana for GST Returns (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Basic
Additional Authentication	Key Pair X.509 — upload the certificate generated per Vayana's documentation; enter the certificate password
Additional Properties	Add Client ID and/or Customer ID received from Vayana

If using GSP Excellon:

Field Value

Communication Type	GSP Excellon for GST Returns (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Basic

E-Invoices (India)

E-invoice registration is processed via NIC (National Informatics Centre), not directly through GSTN. DRC routes these submissions through your chosen GSP to the NIC IRP (Invoice Registration Portal).

Step 1 — Base communication setting:

Field Value

Communication Type	E-Invoices (IN)
Identification Number	Your GSTIN number
Authentication	Basic

Step 2 — GSP-specific communication setting:

If using GSP Vayana:

Field Value

Communication Type	GSP Vayana for E-Invoices (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Key Pair X.509 — upload the certificate generated per Vayana's documentation; enter the certificate password
Additional Properties	Add Client ID and/or Customer ID received from Vayana

If using GSP Excellon:

Field Value

Communication Type	GSP Excellon for E-Invoices (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Basic

E-Waybills (India)

E-waybill generation is also handled through NIC (National Informatics Centre) via the E-Waybill System. DRC routes these requests through your chosen GSP to NIC.

Step 1 — Base communication setting:

Field Value

Communication Type	E-Waybills (IN)
Identification Number	Your GSTIN number
Authentication	Basic

Step 2 — GSP-specific communication setting:

If using GSP Vayana:

Field Value

Communication Type	GSP Vayana for E-Waybills (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Key Pair X.509 — upload the certificate generated per Vayana's documentation; enter the certificate password
Additional Properties	Add Client ID and/or Customer ID received from Vayana

If using GSP Excellon:

Field Value

Communication Type	GSP Excellon for E-Waybills (IN)
Identification Number	Service provider name maintained in the business system
Authentication	Basic

Obtaining GSTINs for Sandbox Testing

Plan early — sandbox onboarding via your GSP can take two or more weeks.

The GSTN provides two environments: Sandbox (for testing) and Production. All testing should be done against the GSTN Sandbox before go-live.

Important: For GST Reporting, production GSTINs cannot be used in the GSTN Sandbox — authentication and report submission will not work. You must use the dedicated test GSTINs provided by your GSP. For GST Reporting, E-Invoicing and E-Waybills, onboarding and sandbox usage rules are governed by GSTN/NIC. Because GSPs are the authorized intermediaries for GSTN/NIC integration and receive the latest operational updates, check with your GSP for the latest guidance before testing.

Contact your chosen GSP (Vayana or Excellon) and request sandbox/test environment access. The GSP provides:

Test GSTINs pre-registered in the GSTN Sandbox
Test credentials (API keys, certificates)

Once received:

In DRC Cloud Edition, configure the sandbox credentials and sandbox API endpoint in Manage Communication Settings – External Party (Step 3).
In S/4HANA, assign the test GSTIN to a Business Place using SSCUI 101326 (Define Business Places for Goods and Services Tax for India).

Note: GSTN Sandbox OTP values for authentication are fixed test values — confirm the expected OTP with your GSP before testing.

Common Pitfalls

Configuring the service binding before finalizing the S/4HANA Communication Arrangement URL
Treating certificates as “optional until UAT” — mismatched certificates can surface as unexpected issues late in testing
Mismatched GSP/service-provider values across S/4HANA and DRC
Omitting the second (GSP-specific) communication setting in DRC — both the base GST Return (IN) setting and the GSP-specific setting are required
Starting GSTIN sandbox onboarding after technical setup is complete (lead times can exceed two weeks)
Creating more than one Communication Arrangement for the same scenario in S/4HANA

Pre-Go-Live Checklist

DRC Cloud Edition Setup (on SAP BTP)

Global Account has DRC Cloud Edition entitlement
Subaccount created in a supported region (India processes verified)
Correct service plan assigned: standard (production) or test (sandbox — routes to GSTN/NIC test environment)
DRC Cloud Edition application subscribed (plan matching subaccount purpose)
Service instance created (Default plan)
Service binding created (authentication type chosen, process = Other Processes)
Service binding URL noted
GST Return (India) process activated (if applicable)
E-Invoices (India) process activated (if applicable — routes to NIC IRP)
E-Waybills (India) process activated (if applicable — routes to NIC E-Waybill System)
User role collections assigned

S/4HANA Cloud Public Edition

Scope items 5XU (reporting scope) and 78L (cloud edition integration) activated
GSTIN assigned to Business Place via SSCUI 101326
GSP Name maintained per Business Place / Company Code (Maintain Service Provider for eInvoice)
SSL client certificate exported
Communication System created (DRC endpoint URL)
Communication Arrangement SAP_COM_0854 created and Integration Scenario field populated

S/4HANA Cloud Private Edition

GSTIN assigned to Business Place via SSCUI 101326
GSP Name maintained per Business Place / Company Code (Maintain Service Provider for eInvoice)
OAuth 2.0 setup: Service binding created in BTP (Authentication Type: OAuth 2.0); OAuth 2.0 Client Profile EDOC_EU_OAUTH created; OAuth 2.0 Client configured (OA2C_CONFIG) with service binding credentials; server root certificate from DRC imported into STRUST; RFC connection created and activated (SM59)

DRC Cloud Edition

Destination certificate generated/uploaded (DRC → S/4HANA)
Connectivity to S/4HANA configured (inbound service URL)
Business system mapped
SSL certificate from S/4HANA uploaded (X.509 authentication only)
(If GST Return) Base communication setting: GST Return (IN) with OTP auth + GSTIN + service provider + username
(If GST Return) GSP-specific setting: GSP Vayana for GST Returns (IN) or GSP Excellon for GST Returns (IN)
(If E-Invoices) Base communication setting: E-Invoices (IN) with GSTIN
(If E-Invoices) GSP-specific setting: GSP Vayana for E-Invoices (IN) or GSP Excellon for E-Invoices (IN)
(If E-Waybills) Base communication setting: E-Waybills (IN) with GSTIN
(If E-Waybills) GSP-specific setting: GSP Vayana for E-Waybills (IN) or GSP Excellon for E-Waybills (IN)

Testing

GSTN Sandbox access obtained via GSP
Authority response handling verified

References

Resource Link

SAP Help: Integrating the Cloud Edition with SAP S/4HANA Cloud Public Edition	Link
SAP Help: Integrating All Other Processes with SAP S/4HANA or SAP S/4HANA Cloud Private Edition	Link
SAP Help: Initial Setup – DRC Cloud Edition (Booster and Manual)	Link
SAP Help: Cloud Edition Service Plans (standard vs test)	Link
SAP Help: Manual Initial Setup – DRC Cloud Edition	Link
SAP Help: Creating Service Bindings Using User Provided SSL Client Certificate	Link
SAP Help: Creating Service Bindings to Use OAuth 2.0 Client Authentication	Link
SAP Help: Managing RFC Connections for DRC Cloud Edition	Link
SAP Help: Configuring a Secure Connection (Private Edition)	Link
SAP Help: Creating Communication Arrangements (SAP_COM_0854)	Link
SAP Help: Establishing Connection from Cloud Edition to Business System	Link
SAP Help: Process-Specific Settings (GSP / Communication Type table)	Link
SAP Help: Maintaining Service Provider for eInvoice (S/4HANA Cloud Public Edition)	Link
SAP Note 3513669	New GST Reporting Capabilities via DRC Cloud Edition for S/4HANA Cloud

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