The Goods and Services Tax Network (GSTN) has announced significant updates to the E-Way Bill and E-Invoice systems, set to take effect on January 1, 2025. Taxation These enhancements aim to bolster security and streamline processes for taxpayers and businesses across India.
Key Updates:
Mandatory Multi-Factor Authentication (MFA):
- Implementation: MFA will become compulsory for all taxpayers using the E-Way Bill and E-Invoice portals.
- Purpose: This measure is designed to enhance the security of user accounts, protecting sensitive information from unauthorized access.
- Current Status: Since August 20, 2023, MFA has been mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹100 crores and optional for those with AATO exceeding ₹20 crores since September 11, 2023.
E-Way Bill Generation Timeframe:
- New Rule: E-Way Bills must be generated within 180 days from the date of invoice. X.com
- Extension Limit: Extensions for E-Way Bills will be capped at 360 days from the invoice date.
- Objective: This update aims to ensure timely compliance and reduce discrepancies in goods movement documentation.
Action Steps for Taxpayers:
Enable MFA:
- How to Activate: Log in to the E-Way Bill or E-Invoice portal, navigate to the ‘User Profile’ section, and select the option to enable MFA.
- Authentication Methods: Users can choose to receive a one-time password (OTP) via registered mobile number or email for the second layer of authentication.
Adhere to E-Way Bill Timelines:
- Invoice Date Tracking: Ensure that E-Way Bills are generated within the stipulated 180-day period from the invoice date.
- Plan for Extensions: If an extension is necessary, be mindful of the 360-day maximum limit to remain compliant.
Benefits of These Updates:
Operational Efficiency: Streamlined processes contribute to smoother business operations and more accurate record-keeping.
Enhanced Security: MFA adds an extra layer of protection, reducing the risk of unauthorized access and potential fraud.
Improved Compliance: Strict adherence to E-Way Bill generation timelines ensures better regulatory compliance and minimizes the likelihood of penalties.
At Tax and Services, we are dedicated to keeping you informed about the latest developments in the GST framework. We recommend that all taxpayers and businesses prepare for these upcoming changes to ensure a seamless transition and continued compliance.
For more detailed information, please refer to the official advisory on the GST portal:
Stay proactive and secure your business operations by adapting to these new requirements ahead of the January 1, 2025, implementation date.