The government has announced significant changes to the GST filing system, set to take effect in 2025. One of the key updates is the introduction of two-factor authentication (2FA) in the e-Invoice System and e-Way Bill, with multi-factor authentication (MFA) becoming mandatory for all GST taxpayers starting April 1, 2025.
According to a recent notification, MFA will be required for taxpayers with an Aggregate Annual Turnover (AATO) exceeding Rs 100 crore beginning August 20, 2024. For taxpayers with an AATO above Rs 20 crore, MFA became optional starting September 11, 2023.
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However, starting January 1, 2025, MFA will be compulsory for taxpayers with an AATO over Rs 20 crore, expanding to those with an AATO exceeding Rs 5 crore from February 1, 2025, and applying to all other taxpayers and users from April 1, 2025, as per an official advisory.
These changes come as the National Information Centre (NIC) prepares to roll out updated versions of the E-Way Bill and e-Invoice Systems, effective from January 1, 2025. The updates are designed to enhance the security of these portals, aligning with best practices and government guidelines.
The implementation of MFA will be one of the primary changes introduced with the new system. Currently, MFA is mandatory for businesses with an AATO over Rs 100 crore and optional for those exceeding Rs 20 crore. From January 1, 2025, MFA will be compulsory for businesses with an AATO exceeding Rs 20 crore, expanding to those with an AATO above Rs 5 crore from February 1, 2025, and finally, all taxpayers and users will be required to adopt MFA from April 1, 2025.
The advisory also highlighted changes in the e-Way Bill generation process. Starting January 1, 2025, e-Way Bills will only be valid for documents dated within 180 days of their generation. For instance, documents dated before July 5, 2024, will no longer be eligible for e-Way Bill generation. Additionally, the extension period for e-Way Bills will be capped at 360 days from the original date of generation. For example, an e-Way Bill generated on January 1, 2025, will only be extendable until December 25, 2025.
The e-Way Bill is a digital document required for the transportation of goods worth Rs 50,000 or more. It is a unique 12-digit number generated on the GST portal or e-Way Bill portal, and it is mandatory for goods transportation via road, rail, air, or waterways.
Failure to present an e-Way Bill can result in the seizure of goods and vehicles, and a penalty of 10 percent of the goods’ value or Rs 10,000 (whichever is higher) may be imposed. Without the e-Way Bill, goods transportation may also be delayed.
These measures are aimed at curbing fraudulent billing and strengthening security within the GST system.