GST Multi-Factor Authentication Changes From April 1: All You Need To Know

As the new fiscal year commences on April 1, 2025, significant changes in Goods and Services Tax (GST) compliance are set to take effect, ushering in enhanced security measures through multi-factor authentication (MFA) on the GST portal. This update aims to fortify the system against unauthorized access and fraudulent activities.

Introduction of Multi-Factor Authentication (MFA)
CA Gaurav Makhijani, Associate Partner at Roedl & Partner India highlights the introduction of MFA as a pivotal change. He explains, "MFA requires additional verification beyond user ID and password, such as a one-time password sent to a registered mobile number. This ensures that only authorized personnel can access the GST portal, enhancing accountability and reducing the risk of misuse."

Addressing Security Concerns
Makhijani underscores the necessity of the MFA in mitigating risks associated with unauthorized access.  “Previously, there were instances where one could access sensitive data or filed returns without clear accountability. MFA addresses these concerns by adding an extra layer of security,” he said.

Impact on E-Way Bills (EWB)
In addition to MFA, new regulations for E-Way Bills (EWB) will limit the generation of bills to base documents within 180 days. This measure aims to streamline compliance and prevent misuse of EWBs.

Financial Compliance Simplified
"These changes are geared towards simplifying compliance procedures," Makhijani adds. "By integrating MFA and updating EWB rules, the GST framework becomes more transparent and secure."

With these updates effective from April 1, 2025, the GST landscape is set to achieve higher standards of security and compliance. Businesses and taxpayers are advised to prepare for these changes to ensure seamless operations within the revised regulatory framework.