GST update : Two-factor Authentication for Taxpayers

Dear Taxpayers,

GSTN is introducing two-factor authentication (2FA) for taxpayers to strengthen the login security in GST portal. The pilot rollout has been done for a state of Haryana and working seamlessly. Currently, 2FA will be rolled out for Punjab, Chandigarh, Uttarakhand, Rajasthan and Delhi in 1st phase. In 2nd phase, it is planned to be rolled out all states across India.Taxpayers would need to provide one-time password (OTP) post entering user id and password, the OTP will be delivered to their Primary Authorized Signatory "Mobile number and E-mail id".Tax-payers are requested to keep their email and mobile number of authorized signatory updated on the GST Portal for receiving the OTP communication. This OTP would only be asked, in case the tax-payer changes the system (desktop or laptop or browser) and location.The solution would be rolled out from 1st of December’2023.

What is GST?Goods and Services Tax (GST) is a comprehensive indirect tax that was introduced in India on July 1, 2017, replacing a complex and fragmented tax structure. The implementation of GST marked a significant reform in the country's taxation system, aiming to streamline processes, eliminate cascading effects, and create a unified market. GST is a destination-based tax, which means that it is levied at the point of consumption rather than the point of origin.

GST subsumes various central and state taxes, including excise duty, service tax, value-added tax (VAT), central sales tax, and others. The tax is levied on both goods and services, providing a uniform tax rate across the nation. The GST structure consists of multiple tax slabs, including 0%, 5%, 12%, 18%, and 28%, ensuring a fair distribution of tax burden based on the nature of goods and services.

One of the key advantages of GST is its input tax credit mechanism. Businesses can claim credit for the taxes paid on inputs and utilize it against the tax liability on the final output. This helps in reducing the overall tax burden and encourages compliance. GST also promotes transparency through the use of technology, with businesses required to file returns electronically through the GST Network (GSTN).

GST has had a profound impact on the Indian economy, simplifying tax compliance for businesses and fostering a more efficient and transparent tax administration. The elimination of multiple tax layers has reduced tax evasion and improved tax collections. Additionally, GST has facilitated the ease of doing business by creating a common market, enabling seamless movement of goods and services across state borders.

While GST has brought about positive changes, it has also faced challenges, such as frequent changes in tax rates, compliance issues, and technological glitches. The government continues to address these issues to ensure the smooth functioning of the GST system. Overall, GST represents a crucial step towards a unified and simplified taxation structure, contributing to the economic growth and development of India.

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