2-Factor Authentication Guide: Securing e-Invoice and e-Way Bill

25 Aug 2023

Under the umbrella of India’s Goods and Services Tax (GST) regime, two pivotal initiatives have emerged: the e-invoice system and the e-way bill. These initiatives are strategically designed to enhance efficiency, transparency, and counteract tax evasion within the GST system.

Understanding Two-Factor Authentication (2FA) in the e-Way Bill System

Two-Factor Authentication (2FA) is a powerful security measure implemented in the e-way bill system. It mandates users to provide two distinct pieces of information for generating or validating an e-way bill. The primary layer of authentication includes the user’s GSTIN and password. This is coupled with an OTP sent to the user’s mobile phone.

Navigating 2FA in the e-Invoice System and e-Way Bill

Upon accessing the e-invoice system or e-way bill portal, users are prompted to input their username and password. Once these credentials are provided, an OTP is dispatched to the user’s mobile device. Successful login requires entering this OTP within the portal.

Verifying an e-Invoice: A Step-by-Step Guide

  1. Visit the GST Portal: Locate and click on the “e-Invoice” link within the GST portal.
  2. Provide Invoice Details: Input the invoice number and password.
  3. Initiate Authentication: Click the “Authenticate” button to initiate the authentication process.
  4. Receive and Input OTP: An OTP is sent to the recipient’s mobile device. Enter this OTP within the system to authenticate the invoice.

Mandatory 2FA for Turnover Above 100 Crore

Effective July 15, 2023, Two-Factor Authentication (2FA) becomes mandatory for taxpayers with an annual aggregate turnover exceeding Rs. 100 crore. This directive is in line with the Government of India’s announcement on June 12, 2023.

Benefits of Embracing 2FA

  1. Enhanced Security: 2FA provides an additional layer of security, deterring unauthorized access attempts.
  2. Fraud Prevention: The complexity added by 2FA makes it harder for fraudsters to create fake invoices or e-way bills.
  3. Improved Compliance: 2FA contributes to better compliance with GST regulations, reducing avenues for tax evasion.

In Conclusion

In the intricate landscape of digital systems, Two-Factor Authentication (2FA) stands as a straightforward yet highly effective strategy for bolstering security within the e-invoice and e-way bill systems. For users engaging with these systems, activating 2FA is a commendable practice, ushering in enhanced security and reinforced compliance.

Similar Topics:-
GST Compliant Invoices/Bills: Key Elements, Significance, and Best Practices
New GST Rules for Small Businesses: What You Need to Know

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