CBIC Introduces Two-Factor Authentication for E-Way Bill & E-Invoicing

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You will now get better security in the e-way bill and e-invoice system as the National Informatics Centre introduces Two-Factor Authentication (2FA). Beyond username and password, users now authenticate with a one-time password (OTP) for enhanced protection. Let’s learn all about two factor authentication for E-Way Bill and E-Invoice and an easy way to do it.

Implementation of  Two-Factor Authentication in GST System

  • Firstly, the latest two factor authentication initiative, rolled out on December 4th, 2023, began with a pilot launch in Haryana and will be gradually implemented across the country.
  • The first phase of the rollout includes Punjab, Chandigarh, Rajasthan, Uttarakhand, and Delhi, followed by a nationwide expansion in the second phase.
  • The GST Network (GSTN) confirmed this phased approach in an advisory. It said, “Currently, 2FA is being rolled out for Punjab, Chandigarh, Uttarakhand, Rajasthan, and Delhi in the first phase. In the second phase, it is planned to be rolled out to all states across India.”


What is Two Factor Authentication?

2-Factor Authentication (2FA) is also known as dual-factor authentication or two-step verification.

It is an extra layer of security for e-Invoicing & e-way bill systems.

While using Two Factor Authentication, instead of simply entering a username and password, users must provide two different pieces of information to verify their identity.

Advantages of two factor authentication for E-Way Bill & E-Invoicing

2FA helps protect your credentials and the resources you access by making it more difficult for unauthorised individuals to gain access.

This is especially important for e-Invoicing and e-way bill systems, as both of these have sensitive financial information. Understand more about E-Way Bills at:

How to Generate An E-way Bill?

Challenges of Two Factor Authentication Systems

  • Access Delays: Inability to access registered mobile numbers for OTP can lead to delays and disrupt business operations.
  • Single Point of Failure: Reliance on a single device for OTP creates a vulnerability point.
  • Security Concerns: SMS-based OTPs and apps are susceptible to attacks and malware.
  • User Adoption: Lastly, Not all users may be comfortable or able to use mobile apps for authentication.


Take a call from Expert

How to make e-invoicing easy by avoiding the hassle of 2 FA?

Instabill, a leading provider of comprehensive e-invoicing solutions, offers a unique advantage: it eliminates the need for two-factor authentication (2FA) while still guaranteeing a highly secure environment for data handling and privacy.

Thus, Instabill significantly benefits businesses that want to streamline their invoicing process without sacrificing security.

Important Note: 2FA can add an extra layer of protection, but it can also be inconvenient for you. With Instabill, there’s no need to worry about entering codes or waiting for verification emails.

Also Read:

GSTN launches e-invoice registration services with private IRPs

Moreover, if you require any kind of guidance related to GST, E-Invoicing or E-Way Bill Generation please feel free to contact our business advisors at 8881-069-069.

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