In 2023, which institution implemented two-factor authentication for all e-way bill and e-invoice systems?

Correct option is C

The correct answer is (C) CBIC.

Explanation:

• In 2023, the Central Board of Indirect Taxes and Customs (CBIC) implemented two-factor authentication (2FA) for the e-way bill and e-invoice systems.
• This step was introduced to enhance the security of these systems and prevent unauthorized access.

Key Implementation Details:

• Phased Rollout:
• July 15, 2023: 2FA became mandatory for taxpayers with an Annual Aggregate Turnover (AATO) above ₹100 crore.
• November 20, 2023: Extended to taxpayers with AATO of ₹20 crore and above.
• Purpose:
• To ensure secure login and prevent fraud in the Goods and Services Tax (GST) ecosystem.
• Added an extra layer of security through authentication via an OTP or app-based verification.

Explanation of Other Options:

• RBI: The Reserve Bank of India oversees financial and banking operations but is not responsible for e-way bills or e-invoice systems.
• CBDT: The Central Board of Direct Taxes handles income tax administration, not GST-related systems.
• SEBI: The Securities and Exchange Board of India regulates securities markets, not tax systems.