2-Factor Authentication in GST e-Invoice and e-Waybill: Steps By Step Guide & FAQs

2-Factor Authentication in GST e-Invoice and e-Waybill. In a significant move to bolster the security of the GST e-Invoice and e-Waybill systems, the National Informatics Centre (NIC) has introduced Two-Factor Authentication (2FA). This additional layer of security requires users to provide two distinct forms of identification to access these critical GST platforms. 2FA adds an extra step of entering a One-Time Password (OTP) in addition to the username and password during login.

The primary purpose of implementing 2FA is to fortify the login process and enhance the security of the e-Invoice and e-Waybill systems. By requiring an additional authentication factor, 2FA significantly reduces the risk of unauthorized access, even if a user’s password is compromised. This measure aims to protect sensitive business information and financial data handled by these GST platforms.

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In This Article We Provide The All Details Of 2fa, Its Implementation, And A Step-by-step Guide On How To Set It Up For Your Business.

Understanding Two-Factor Authentication.

Two-Factor Authentication (2FA) is a security process that requires users to provide two different authentication factors to verify their identity. Typically, 2FA combines something the user knows (like a password) with something the user has (like a smartphone) or something the user is (like a fingerprint).

In the context of GST e-Invoice and e-Waybill, 2FA adds an extra step of entering a One-Time Password (OTP) in addition to the username and password during login. This OTP can be received through various modes, which we will discuss later in this article.

Importance of 2FA in GST Systems.

The GST e-Invoice and e-Waybill systems handle sensitive financial information and business data. Unauthorized access to these platforms can lead to data breaches, financial losses, and compliance issues.

By implementing 2FA, the NIC aims to:

1. Enhance security by adding an extra layer of authentication
2. Reduce the risk of unauthorized access and data breaches
3. Protect sensitive business and financial information
4. Increase trust and reliability in the GST systems
5. Ensure compliance with GST regulations and data security standards

Applicability and Timeline.

As per the latest updates, 2FA will be mandatory for taxpayers based on their Annual Aggregate Turnover (AATO) as follows:

• Taxpayers with AATO above Rs. 100 crore: Mandatory from August 21, 2023
• Taxpayers with AATO between Rs. 20 crore and Rs. 100 crore: Mandatory from November 20, 2023

It’s crucial for businesses falling under these categories to register for 2FA and familiarize themselves with the process to ensure uninterrupted access to the GST systems.

Modes of Generating OTP for 2FA.

The GST e-Invoice and e-Waybill systems offer three different modes for generating the OTP required for 2FA:

1. OTP via SMS: An OTP is sent to the user’s registered mobile number via SMS. Ensure that your registered mobile number is up to date to receive the OTP seamlessly.
2. OTP via Sandes App: Users can download the government-provided Sandes messaging app and receive the OTP securely within the application. This provides an alternative to SMS-based OTP.
3. OTP via NIC-GST-Shield App: The NIC-GST-Shield app, specifically designed for the e-Waybill and e-Invoice systems, allows users to generate OTPs. This app can be downloaded from the e-Waybill/e-Invoice portal and functions independently of internet or mobile network connectivity. The app displays a refreshed OTP every 30 seconds.

Step-by-Step Guide to Register for 2FA.

Follow these steps to register for 2FA in the GST e-Invoice and e-Waybill systems:

1. Log in to the e-Waybill System or e-Invoice System: Use your existing credentials to log in to the respective system.
2. Navigate to the 2FA Registration Page: From the main menu, select the “2 Factor Authentication” option.
3. Choose Your Preferred OTP Mode: Select your desired mode for receiving the OTP – SMS, Sandes App, or NIC-GST-Shield App.
4. Complete the Registration Process: Follow the on-screen instructions to complete the 2FA registration. This may involve providing additional details or verifying your mobile number.
5. Confirm Registration: Once you have completed the registration process, the system will prompt you to confirm your 2FA registration.

After successful registration, you will be required to enter the OTP along with your username and password during each login attempt.

Using 2FA for Login.

Once you have registered for 2FA, follow these steps to log in to the GST e-Invoice or e-Waybill system:-

1. Enter Your Credentials: Enter your username and password on the login page as usual.
2. Enter the OTP: After submitting your credentials, you will be prompted to enter the OTP. Depending on your chosen mode, you will receive the OTP via SMS, Sandes App, or NIC-GST-Shield App.
3. Submit the OTP: Enter the received OTP in the designated field and submit it.
4. Access Granted: If the entered OTP is correct, you will be granted access to the GST system.

Remember that the OTP is time-sensitive and valid only for a short duration. Make sure to enter the OTP promptly to avoid any delays or login failures.

FAQs.

Is 2FA mandatory for all taxpayers?

As of now, 2FA is mandatory for taxpayers with an AATO above Rs. 100 crore, effective from August 21, 2023. For taxpayers with an AATO between Rs. 20 crore and Rs. 100 crore, 2FA becomes mandatory from November 20, 2023.

Does 2FA apply to both e-Invoice and e-Waybill systems?

Yes, once registered for 2FA, it applies to both the e-Invoice and e-Waybill systems.

Can 2FA be disabled after registration?

Users can de-register from 2FA using the “2 Factor Authentication → Registration / Deregistration” link when it is optional. However, once 2FA becomes mandatory, it cannot be disabled.

Is 2FA required for the GST portal login?

No, 2FA is currently not mandatory for logging into the GST portal. It is only required for accessing the e-Invoice and e-Waybill systems.

What if I don’t receive the OTP?

If you don’t receive the OTP, check your registered mobile number and ensure it is up to date. You can also try resending the OTP or switching to a different OTP mode if available.

Conclusion

The introduction of Two-Factor Authentication in the GST e-Invoice and e-Waybill systems is a significant step towards enhancing the security of these critical platforms. By requiring users to provide an additional authentication factor, 2FA helps protect sensitive data and prevent unauthorized access.

As 2FA becomes mandatory for taxpayers based on their Annual Aggregate Turnover, it is essential for businesses to understand the registration process, available OTP generation modes, and the step-by-step guide to set up and use 2FA effectively.

2FA is crucial for businesses to safeguard their financial information, maintain compliance with GST regulations, and contribute to a more secure GST ecosystem. By staying informed and proactive, businesses can ensure a smooth transition to the 2FA system and continue to benefit from the streamlined processes offered by the GST e-Invoice and e-Waybill platforms.