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Two-factor Authentication for People Whose Business Turnover Exceeds Hundred Crores

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Introduction

On May 15, 2023, the Ministry of Electronics and Technology’s National Informatics Center implemented a new system that offers two-factor authentication for business owners with a turnover exceeding 100 crores. This additional security measure aims to enhance the protection of the E-way bill and E-invoice systems, complementing the traditional username and password login process. This article will discuss the two-factor authentication process’s key aspects and user benefits.

Step-by-step process

To better understand two-factor authentication, let’s examine the basic concept and the process involved:

  1. OTP Generation: Upon login, the individual receives a one-time password (OTP) on their registered mobile number as a security measure.
  2. Sandes App: The government provides the Sandes app, which can be downloaded from their official website. This app ensures secure communication and protects against fraudulent hackers.
  3. NIC GST Shield App: Exclusively available on the e-way bill and e-invoice portal website, the NIC GST Shield app offers an additional layer of security. Unlike other apps, it functions without an internet connection. An OTP is generated and refreshed every thirty seconds when opening the app.

Registration for two-factor authentication

The registration process for two-factor authentication can be completed once the initial registration in the e-way bill portal is finished. After completing the registration process, an OTP is generated from the portal. Users must enter the OTP with their username, password, and other necessary information to complete the registration. Additionally, separate registration processes exist for other users and GSTINs.

Is two-factor authentication mandatory?

Initially, two-factor authentication was not mandatory. However, due to increasing global threats from hackers and a rise in fraudulent activities related to E-way bills and E-invoices, it was deemed necessary to make two-factor authentication mandatory for businesses with an annual turnover exceeding 100 crores. This decision aims to strengthen the overall security system and protect crucial information.

Conclusion

Implementing two-factor authentication by the National Informatics Center, Ministry of Electronics and Technology is commendable. It ensures safeguarding personal information associated with GST processes such as E-way bills and E-invoices. The protection of individual data from hackers and other fraudulent individuals is crucial. Starting from July 15, 2023, two-factor authentication is mandatory for businesses with a turnover exceeding 100 crores, further reinforcing data security measures.

FAQs

What is two-factor authentication for people with business turnover exceeding a hundred crores?

Two-factor authentication is a security measure introduced by the National Informatics Center under the Ministry of Electronics and Technology. It enhances the security of the E-way bill and E-invoice system by adding an extra layer of protection alongside the traditional username and password. Eligible business owners with a turnover exceeding 100 crores receive a one-time password (OTP) to their registered mobile number as an additional security check.

How can I download the Sandes app?

The Sandes app can be downloaded from the government website. It is a secure messaging app the government provides to protect against fraudulent hackers.

What is the NIC GST Shield app?

The NIC GST Shield app is available exclusively on the e-way bill and e-invoice portal website. It can be downloaded from the government portal. This app provides an added layer of security without requiring an internet connection. Each time the app is opened, it generates an OTP that refreshes every thirty seconds.

Is two-factor authentication mandatory?

While two-factor authentication was not initially mandatory, it has become mandatory as of July 15, 2023, for businesses with an annual turnover exceeding 100 crores. This step was taken to strengthen the security system and protect the sensitive information stored in the E-way bill and E-invoice systems, given the increasing threats posed by hackers and the rise in fraudulent handling of such information.

G.Durghasree B.A.B.L (Hons)

G Durghasree B.A.B.L (Hons) is a registered trademark attorney with extensive experience as an Advocate for a period of 8 years. She possesses expertise in trademark law, including trademark filing and trademark hearings. Additionally, she is skilled in contract drafting and reviewing, providing legal advice and opinions, particularly in the areas of Company Law, Insolvency and Bankruptcy Code (IBC), and Goods and Service Tax Law (GST). Her experience encompasses both litigation and non-litigation aspects of these laws.