Two-Factor Authentication for E-Way Billing: A Detailed Guide
Updated: Aug 2
Data security is crucial in the rapidly changing world of information technology, particularly when it comes to sensitive data and financial activities. '2-Factor Authentication (2FA)' is a crucial security feature that the e-Waybill/e-Invoice System recently introduced in recognition of this. The purpose of this article is to give readers a thorough understanding of 2FA and how it is implemented in the e-Waybill and e-Invoice System, highlighting the significance of this extra security feature.
Table of content
What is 2-Factor Authentication in E-Way Bill?
In addition to the traditional username and password combination, 2-factor Authentication offers an extra degree of protection. To access the system, users must submit a second form of authentication, usually an OTP. This greatly lowers the possibility of unauthorised entrance by ensuring that even if someone were to obtain the login credentials, they would still require the OTP in order to continue. There are three methods for receiving a one-time password (OTP) with two-factor authentication. The following is a discussion on the same:
SMS: The assessee receives the OTP via SMS on the registered cellphone number.
Sandes app: The Indian government offers the assessees the ability to send and receive messages via this messaging app. Assessors can use their registered cellphone number to download and install this app, and they will be sent a one-time password.
NIC GST Shield App: An OTP can be created via the NIC-GST-Shield mobile application, which is offered by e-Invoice System/e-way Bill. The only place to download the NIC-GST-Shield app was the e-Invoice/e-Waybill portal. To utilise the NIC-GST-Shield mobile app, the assessee must do the following actions:
The assessees must use their registered device number for downloading, installing, and registering this app.
At the same time, ensure that the timing on the NIC-GST-Shield app is the same as the one on the e-waybill/e-invoice system.
This app displays a one-time password upon opening.
The assessee could proceed with the authentication process by entering this OTP. The OTP is refreshed once every thirty seconds. The OTP generated by this app can be generated without internet access by the assessee.
Benefits of Adopting 2-Factor Authentication
Enhanced Security: By adding an extra degree of protection, 2FA discourages efforts by unauthorised users to log in.
Fraud Prevention: It is more difficult for fraudsters to fabricate fraudulent invoices or e-way bills due to the intricacy that 2FA adds.
Enhanced Compliance: By eliminating opportunities for tax evasion, 2FA helps to improve compliance with GST legislation.
However, the system also has some downsides. You should be aware that the OTP is transmitted to the registered mobile number of the approved GSTIN persons in the event of SMS and the NIC-GST-Shield app. In the unlikely event that the invoicing team cannot easily obtain these registered cell numbers for an OTP, there may be delays in the production of e-invoices and e-way bills, which could cause business interruptions.
Steps to Register for 2-Factor Authentication
Step 1: Access the Main Menu after you log into the e-Invoice System.
Step 2: Confirm your registration and select two-factor authentication.
Step 3: The system will require a one-time password along with the login and password after confirmation.
This feature is now available on an optional basis. That will, however, soon become required.
Conclusion
Two-factor authentication (2FA) is a simple but very powerful method for enhancing security in the e-way bill and e-invoice systems in the complex world of digital systems. Activating 2FA introduces better security and reinforced compliance, making it a respectable practice for users interacting with these platforms.
FAQ
Q1. How secure is 2-factor authentication?
By making it more difficult for attackers to access an assessee's accounts—even if the assessee's password is compromised—two-factor authentication (2FA) adds an extra layer of security to the entire authentication process. However, 2FA is not necessary if a third-party solution possesses the required certifications for data security and privacy, such as SSL encryption, SOC-2 audits, and ISO 27001 certifications.
Q2. Is 2-factor authentication mandatory for GST?
No, to access the GST portal, two-factor authentication is not required. Accessing the e-way bill and e-invoicing portals is now required.
Q3. Is 2-factor authentication mandatory for e-invoicing?
Only a few people are now informed that employing two-factor authentication for e-invoicing on the NIC is required. But soon, it will be required because two-factor authentication is an essential step to follow certain password restrictions. According to NIC's September 2023 update, taxpayers with an annual aggregate turnover of more than Rs. 100 crore will need to begin using the 2FA on August 21, 2023. From November 1, 2023 onwards, it will thereafter be applicable to those having an annual revenue of more than Rs. 20 crore.
Q4. How does 2FA work in the e-way billing system?
Users of the GST e-Invoice & e-Waybill System must supply two distinct forms of identity factors to enable 2-factor authentication (2FA). To access their accounts, users usually need to supply two things: a known parameter (password/username) and a dynamic parameter (SMS or app-based OTPs/security tokens retrieved from mobile).
Q5. How to disable 2-factor authentication in the e-way bill portal?
When this feature was optional, you could de-register it at any moment by clicking the "2-Factor Authentication Registration / Deregistration" link. But once it became required, there was no turning it off.
Q6. What are the new rules for e-way billing?
Businesses that generate e-way bills and e-invoices must make sure they do so concurrently or generate e-way bills first and e-invoices second by March 1, 2024, at the latest. Additional validations should be included in ERP systems and compliance solutions to prevent direct e-way bill production for export and business-to-business transactions.
Q7. Can we check the e-way bill online?
Using the EWB Portal's search function, anyone can confirm the legitimacy or accuracy of an e-way bill by entering its EWB No., EWB Date, Generator ID, and Doc No.
Q8. How can I change the password for my e-way billing portal?
Simply select 'Forgot Password' on the portal, get an OTP, and enter it to go back in to retrieve your e-way bill password. How is an e-way login created? Visit the portal, select "Enrolment for Transporters," enter the required information and supporting documentation, select a username and password, and then click "Submit" to create an e-way bill login.
Related Posts
See AllEvaluating the legitimacy of a Goods and Services Tax Identification Number (GSTIN) , a distinct alphanumeric code given to each...
Comments