The Goods and Services Tax Network (GSTN) in India has announced new security requirements that will make Multi-Factor Authentication (MFA) mandatory for GST taxpayers, with a phased rollout beginning January 2025. The initiative represents a significant expansion of India’s digital security infrastructure for tax collection, building on the country’s broader push toward secure digital transactions.
Starting January 1, 2025, businesses with an Annual Aggregate Turnover (AATO) exceeding Rs 20 Crores will be required to implement MFA. The requirement will extend to taxpayers with AATO exceeding Rs 5 Crores on February 1, 2025, before becoming mandatory for all taxpayers on April 1, 2025.
The new requirements build upon existing MFA implementations, which have been mandatory for taxpayers with AATO exceeding Rs 100 Crores since August 20, 2023. For businesses with AATO exceeding Rs 20 Crores, MFA has been available as an optional security measure since September 11, 2023. The graduated approach follows global security best practices that increasingly favor multi-factor authentication over traditional single-factor methods.
The GSTN has also announced changes to E-Way Bill procedures. From January 1, 2025, E-Way Bills can only be generated for documents dated within the previous 180 days. Additionally, E-Way Bill extensions will be limited to 360 days from the original generation date. These changes are part of a broader effort to strengthen the digital tax infrastructure and reduce potential fraud.
The implementation comes as India continues to expand its digital financial services ecosystem, with recent developments in mobile financial services demonstrating the country’s commitment to secure digital transactions. The GSTN’s approach to authentication reflects growing concerns about cybersecurity in financial systems, particularly as digital tax collection becomes more prevalent.
“Taxpayers are requested to familiarize themselves with these updates and incorporate the necessary adjustments into their compliance processes,” said the GSTN. The organization recommends that taxpayers verify their registered mobile numbers are current with their GSTIN and begin implementing MFA ahead of the mandatory deadlines.
Detailed implementation instructions are available through both the E-Invoice and E-Way Bill portals to assist taxpayers with the transition to mandatory MFA. The GSTN’s implementation guide includes specific technical requirements and security protocols to ensure compliance with the new authentication standards.
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