Enhancing GST Security: Introducing Two-Factor Authentication (2FA)

In a decisive and forward-thinking move to fortify the robustness of security measures associated with GST logins and deter unauthorized access, the Goods and Services Tax Network (GSTN) has introduced the proactive implementation of Two-Factor Authentication (2FA) for taxpayers. Upon the meticulous inputting of their login credentials, taxpayers will promptly and securely receive a unique one-time password (OTP). This OTP, providing extra security, will be sent to the Mobile number and Email ID of the Primary Authorized Signatory. Ensuring the utmost security, taxpayers are urged to regularly verify and update the Mobile number and Email ID within the authorized signatory’s contact details. The rigorous testing of the 2FA protocol commenced with meticulous attention in the State of Haryana in November 2023. With the results yielding a high degree of satisfaction, the implementation swiftly extended its reach to encompass states such as Punjab, Chandigarh, Uttarakhand, Rajasthan, and Delhi. This implementation came into effect on December 1, 2023, marking the initiation of the first phase. The subsequent phase, poised for rollout in the imminent future, will comprehensively cover the remaining states. 2FA security will activate whenever a user changes their device, browser, or login location. After the first login, the system won’t request the same authentication unless accessed from a different location or system. Limitations: While 2FA strengthens GST account security, it is important to acknowledge and address certain inherent limitations.

• Challenges for Companies and Tax Consultants:

Entities using Chartered Accountants (CAs) or tax consultants may frequently need OTPs due to dynamic GST filing systems.

• Potential Delays and Late Fees:

Instances wherein the designated individual is unavailable during filing may inadvertently result in procedural delays, potentially leading to the imposition of late fees and accrued interest.

• Network Glitches and Operational Challenges:

Adverse network conditions or high load on the GST portal may occasionally delay OTP delivery, challenging timely authentication. Despite these limitations, taxpayers must proactively plan to ensure their workflows remain unaffected by these constraints. The foresighted approach to addressing these challenges will not only ensure the seamless integration of heightened security measures facilitated by the introduction of 2FA but also contribute to the overall resilience of the GST system.