🔐 Mandatory 2-Factor Authentication (2FA) in E-Invoice & E-Way Bill System from April 1, 2025

📌 Introduction: Why 2FA is Now Compulsory for All GST Users |

2FA in e-Invoice System Mandatory from April 1, 2025 | To strengthen security and protect sensitive taxpayer data, 2-Factor Authentication (2FA) is now mandatory for accessing the e-Invoice and e-Way Bill portals. Starting April 1, 2025, this requirement applies to all GST-registered businesses, regardless of turnover.

This initiative adds an additional layer of security and aims to eliminate risks associated with password-only access.

🗓️ 2FA Rollout Timeline at a Glance

Effective Date	Applicable To
August 20, 2023	Businesses with AATO > ₹100 Crore
January 1, 2025	AATO > ₹20 Crore
February 1, 2025	AATO > ₹5 Crore
April 1, 2025	All GST-registered taxpayers

🔍 What is Two-Factor Authentication (2FA)?

2FA is a login process requiring two forms of identification:

✅ Username + Password (what you know)
✅ One-Time Password (OTP) (what you have)

Users must verify their identity using any one of the following OTP options:

📲 SMS OTP sent to the registered mobile number
📥 Sandes App OTP (Indian Government’s messaging app)
🔐 NIC-GST-Shield App OTP (offline OTP that refreshes every 30 seconds)

These authentication steps apply to both the e-Invoice and e-Way Bill portals.

🛠️ Step-by-Step: How to Enable 2FA on GST Portals

Login to the e-Invoice or e-Way Bill portal.
Click on ‘2-Factor Authentication’ in the dashboard menu.
Go to the ‘Registration’ section.
Choose your preferred OTP mode – SMS, Sandes, or NIC-GST-Shield.
Enter the OTP received/generated to confirm the setup.
Once activated, all sub-users under the same GSTIN will also require OTP verification during login.

📈 Why 2FA Matters: Key Benefits

Benefit	Description
🛡️ Stronger Security	Protects against hacking and unauthorized system access
✅ Regulatory Compliance	Meets GSTN requirements and mandates
📉 Reduced Fraud Risk	Prevents misuse of credentials and invoice tampering
🔍 Better Audit Trail	Improves accountability for every e-Invoice and e-Way Bill entry
💼 Operational Continuity	Ensures uninterrupted access to portals for tax compliance

⚠️ What If You Don’t Enable 2FA?

Failing to activate 2FA can result in:

❌ Denial of access to the e-Invoice or e-Way Bill system
💸 Penalties and late filing consequences
🚫 Ineligibility to generate valid GST-compliant invoices
📉 Rejection of Input Tax Credit (ITC) claims on invalid documents

📊 2FA vs Traditional Login: What’s the Difference?

Feature	Traditional Login	2FA Login
Authentication Layers	Single (Password)	Dual (Password + OTP)
Security Level	Basic	High
Risk of Unauthorized Use	High	Low
Portal Access Control	Weak	Strong
Compliance with GSTN	Not Sufficient	Fully Compliant

✅ Final Checklist Before April 1, 2025

Download and install the Sandes or NIC-GST-Shield app
Update your registered mobile number, if needed
Enable 2FA on the GST portals
Train sub-users on new login procedures
Bookmark this guide for internal reference

📢 Conclusion

With cybersecurity becoming more critical to tax systems, the introduction of 2FA across GST portals is a welcome step. By enabling it today, you not only comply with regulations but also fortify your business against data threats and fraud.

Enable 2FA now to ensure uninterrupted GST compliance in 2025 and beyond.