Advisory on Interest Computation and System Enhancements in GSTR-3B

 Posted on 31-01-2026

Advisory on Interest Computation and System Enhancements in GSTR-3B

(Effective from January 2026 Tax Period)

Taxpayers are hereby informed that, starting from the January 2026 tax period, several enhancements have been implemented in the filing of GSTR-3B to improve accuracy, transparency, and alignment with the provisions of the CGST Act and Rules.

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1. Enhancement in Interest Computation – Table 5.1 of GSTR-3B

From the January 2026 tax period onwards, the GST Portal has enhanced the system-based interest calculation in Table 5.1 of GSTR-3B. The revised computation provides the benefit of the minimum cash balance available in the Electronic Cash Ledger (ECL) from the due date of return filing up to the date of tax payment (offset), in accordance with the proviso to Rule 88B(1) of the CGST Rules, 2017.

This enhancement shall apply to delayed returns pertaining to the January 2026 tax period, for which the applicable interest will be auto-populated in the GSTR-3B of February 2026.

Revised Interest Computation Formula

Interest =

(Net Tax Liability − Minimum Cash Balance in ECL from due date to date of debit)

× (Number of days of delay / 365)

× Applicable interest rate

System-Computed Interest (Table 5.1)

• The interest auto-populated in Table 5.1 shall be non-editable downward.

• Taxpayers will not be permitted to reduce the system-computed interest.

• The auto-populated interest represents the minimum interest payable.

• Taxpayers are required to self-assess their actual interest liability and may revise the interest upwards, if necessary.

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2. Auto-Population of Tax Liability Breakup Table in GSTR-3B

The Tax Liability Breakup Table in GSTR-3B captures tax pertaining to supplies of previous tax periods that are being reported and paid in the current tax period.

Accordingly, from the January 2026 tax period onwards, the GST Portal shall auto-populate the Tax Liability Breakup Table based on the date of documents relating to supplies reported in GSTR-1 / GSTR-1A / IFF of earlier tax periods, where the corresponding tax liability is discharged in the current GSTR-3B.

Viewing Path on GST Portal

Login → GSTR-3B Dashboard → Table 6.1 (Payment of Tax) → Tax Liability Breakup

Key Points:

• Auto-populated figures are suggestive in nature.

• Taxpayers may modify the values upwards, based on their own records and computations, wherever required.

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3. Update in Table 6.1 – Suggestive Cross-Utilization of ITC

From the January 2026 tax period onwards, once the available IGST ITC is fully utilized, the GST Portal will allow payment of IGST liability using available CGST and SGST ITC in any sequence, as reflected in Table 6.1 of GSTR-3B.

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4. Levy of Interest through GSTR-10 (Final Return)

In the case of cancelled GST registrations, if the last applicable GSTR-3B is filed after the due date, the interest applicable on such delayed filing shall be levied and collected through the Final Return (GSTR-10).

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Objective of the Enhancements

These enhancements are intended to:

• Assist taxpayers in accurate reporting of tax liabilities

• Ensure correct computation of interest

• Align system functionality with the proviso to Section 50 of the CGST Act, 2017

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Disclaimer

This advisory is issued solely for educational and informational purposes and does not constitute legal advice. Taxpayers are advised to refer to the relevant provisions of the GST Act, Rules, Notifications, and Circulars for statutory compliance and legal interpretation.

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