Goods and Services Tax (GST) registered taxpayers who are yet to register for two factor authentication for generating e-waybill, have got a short-term relief from GSTN. The Goods and Services Tax Network (GSTN) said that for the time being 2FA has been made optional so that taxpayers can generate e-waybills without it, but ’shortly’ it will be made mandatory. GSTN hence advised to take this opportunity and register for 2FA to prevent disruption in the taxpayer’s business.Read below to understand the new e-waybill process in which there will soon be a requirement of two factor authentication.
What is the new GST e-waybill rule?
According to an Goods and Services Tax Network (GSTN) advisory dated December 17, 2024, said, “Starting 1st January 2025, MFA will become mandatory for taxpayers with AATO (Aggregate Annual Turnover) exceeding Rs 20 Crores, from 1st February 2025 for those with AATO exceeding Rs 5 Crores, and from 1st April 2025 for all other taxpayers and users.”
E-waybill is very important because usually goods above Rs 50,000 value (unless otherwise exempt) can’t be transported through any motorised vehicles without generating an e-waybill. So if a taxpayer is sending his/her goods without generating an e-waybill then the GST officers can seize the said goods and even the transportation vehicle also. This is also the reason why transporters usually reject transporting goods without a valid e-waybill. This monetary limit can also vary from one state to another.
Can a taxpayer generate e-waybill without 2FA?
Both on the GSTN portal and GSTN advisory it is written that 2FA is mandatory for generating e-waybill but practically chartered accountants report that on the GSTN portal it is written that the 2FA feature is at present not mandatory but will “shortly” be made mandatory.
GSTN said as of 5.34PM on April 1, 2025 on the portal of a taxpayer who is yet to register for 2FA, “As you are aware 2 Factor Authentication (2FA) is provisioned in e-Waybill/e-Invoice. However, you have not yet registered for the 2FA. Please register and secure your credentials. Shortly, 2FA will be made mandatory.”GSTN said:
- The OTP authentication is based on individual user accounts. That is, the sub users of GSTIN will have separate authentication depending on their registered mobile number in the e-Invoice/e-Way Bill System.
- Once you have Registered for 2 Factor authentication then the same is applicable for both e-Invoice and e-Way bill system.
Chartered Accountant Deep Koradia says: “The advisory by GSTN says that 2FA is mandatory for generating e-waybill and e-invoice but they will soon make it mandatory on E-waybill and e-invoice portal. Till that time, tax payer is advised to create sub user and opt in for 2FA for smoother transition “
GSTN portal
Source: CA Deep Koradia on 5.34PM April 1, 2025
Chartered Accountant Himank Singla, partner, SBHS & Associates, says “Professionals must update the phone number of clients on GST Portal so that E-Way bill two Factor Authentication (2FA) becomes easy for clients.”
Should you use 2FA for your own safety and protection against fraud, despite it not being made mandatory yet?
Chartered Accountant Bimal Jain, founder, A2Z Taxcorp LLP, says we can continue to generate e-waybill without 2FA, but ethically we should not do so since this feature is introduced for the taxpayer’s own good.
Jain explains: “The 2FA feature is introduced as a safeguard against fraud. Irrespective of the fact whether the law mandated this or not, GST registered taxpayers should themselves register for 2FA. It’s just like our bank account which can’t be accessed through internet banking without authentication through OTP (2FA).
Jain highlights why some past negative instances led to the implementation of 2FA. “In the past there were cases where the taxpayer’s GST account was misused to generate e-waybills, but the goods were sent by some other taxpayer. So, in case of a data breach, this could lead to potential business loss. Hence a concentration of data of this magnitude should be avoided by using the 2FA security measure.”
