In a move to bolster the security and efficiency of the E-Way Bill and E-Invoice Systems, the Goods and Services Tax Network (GSTN) has announced that the National Informatics Centre (NIC) will roll out significant updates effective from 1st January 2025. These changes are in line with the government’s commitment to adopting best practices and enhancing digital infrastructure.
Key Updates to the Systems
1. Mandatory Multi-Factor Authentication (MFA)
One of the most notable enhancements is the phased implementation of Multi-Factor Authentication (MFA). This security measure, which requires users to authenticate their login using a combination of username, password, and a one-time password (OTP) sent to a registered mobile number or authorized app, has already been partially implemented.
- Previous Implementation:
- Mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 Crores since 20th August 2023.
- Optional for those with AATO exceeding Rs 20 Crores since 11th September 2023.
- Upcoming Phases:
- From 1st January 2025, MFA will be mandatory for taxpayers with an AATO exceeding Rs 20 Crores.
- From 1st February 2025, this requirement will extend to those with an AATO exceeding Rs 5 Crores.
- By 1st April 2025, MFA will be compulsory for all taxpayers and users.
Taxpayers are encouraged to activate MFA immediately to ensure seamless access to the portals. Detailed instructions for activation are available on both the E-Way Bill and E-Invoice portals. Additionally, taxpayers should verify that their registered mobile numbers are up-to-date in the GSTIN records.
2. Restriction on E-Way Bill Generation Period
To streamline compliance, a new restriction will limit the generation of E-Way Bills to documents dated within 180 days of the base document’s date.
- Example: Starting 1st January 2025, documents dated earlier than 5th July 2024 will no longer be eligible for E-Way Bill generation.
Taxpayers are advised to verify their documentation and ensure compliance with this updated timeline to avoid disruptions in business operations.
3. Restriction on E-Way Bill Extension Period
Another significant change pertains to the extension of E-Way Bills. Effective 1st January 2025, the extension of an E-Way Bill will be restricted to 360 days from its original generation date.
- Example: An E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.
This update emphasizes the importance of adhering to timelines to maintain the validity of E-Way Bills.
Preparing for the Transition
The GSTN urges all taxpayers to familiarize themselves with these updates and incorporate the necessary adjustments into their compliance workflows. Proactive measures, such as enabling MFA and reviewing documentation timelines, can help ensure a smooth transition to the new system requirements.
For further guidance and detailed instructions, users are encouraged to visit the official E-Way Bill and E-Invoice portals. These resources offer comprehensive information to assist taxpayers in navigating the updated systems effectively.
Final Note
The upcoming enhancements to the E-Way Bill and E-Invoice Systems underline the government’s ongoing commitment to improving the integrity and functionality of GST-related processes. By adopting these measures, businesses can contribute to a more secure and efficient tax ecosystem, ultimately benefiting all stakeholders in the supply chain.
Stay informed, stay compliant, and embrace the new digital era of taxation starting January 2025!
