September 11, 2023

Mandatory 2-factor authentication & 30 days of IRN reporting effective from 1 November 2023

In a bid to streamline the Goods and Services Tax (GST) system and prevent tax evasion in India, the GST Authority has introduced two significant updates that are set to come into effect from 1st November 2023. These updates aim to promote greater compliance and transparency in tax reporting. In this blog, we will delve into the details of these changes and their implications for taxpayers.

Reporting Invoices within 30 Days

One of the key updates introduced by the GST Authority pertains to the reporting of invoices on e-invoice portals. The new regulation imposes a strict time limit of 30 days for reporting invoices from the date of issuance. This change applies to taxpayers whose Aggregate Annual Turnover (AATO) is greater than or equal to 100 crores. Taxpayers falling under this category must ensure that invoices are reported within this stipulated time frame.


Timely Reporting

Taxpayers falling under the category of AATO of 100cr must now prioritize the prompt reporting of invoices. To ensure that the GST system remains up-to-date, helping in the efficient collection of taxes.

No Reporting of Older Invoices

Under this regulation, taxpayers are prohibited from reporting invoices that are older than 30 days from the date of issuance. For example, if an invoice has a date of Nov. 1, 2023, it cannot be reported after Nov. 30, 2023. This restriction applies to all types of documents for which Invoice Reference Numbers (IRNs) need to be generated. This includes Credit and Debit notes also.


Non-compliance with this new rule may lead to penalties and legal consequences. It is crucial for affected taxpayers to adapt swiftly to this change to avoid such repercussions. 

According to the earlier notification released on May 6, 2023, the GST law imposes a huge penalty as follows-

For incorrect invoicing – Rs.25,000 per invoice (for the issue of the invoice that lacks IRN and signed QR code). 

For non-generation of an e-invoice – 100% of the tax due or Rs.10,000, whichever is higher, for every invoice. (where the invoice is not issued)

Mandatory 2-Factor Authentication

The second significant update set to take effect on 1st November 2023 is the mandatory implementation of 2-factor Authentication for taxpayers with an AATO exceeding Rs 20 Crores. This security measure aims to enhance data protection and safeguard sensitive tax information.


Enhanced Security

2Factor Authentication is a robust security mechanism that requires users to provide two forms of authentication before accessing their accounts. This will help protect taxpayer's data and prevent unauthorized access.

Implementation Deadline

Taxpayers falling under the category of AATO of 20cr threshold must ensure that they have implemented 2 Factor Authentication before the deadline. Failing to do so could result in disruptions to their tax-related activities.


In conclusion, these updates in the GST compliance framework represent a significant step toward a more efficient and secure tax reporting system. It is essential for affected taxpayers to understand the implications of these changes and take proactive steps to comply with the new regulations. Timely reporting of invoices and the adoption of 2-factor Authentication will not only ensure compliance with the law but also contribute to a more transparent and reliable GST ecosystem. As the November 1st, 2023 deadline approaches, taxpayers should prioritize adapting to these changes to avoid potential penalties.


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