Important Advisory on Interest Collection and Related Enhancements in GSTR-3B

The Goods and Services Tax Network (GSTN) has issued an important advisory introducing certain enhancements in the filing of GSTR-3B, effective from the January 2026 tax period onwards. The key changes and their implications are summarized below for your kind reference and compliance.

1. System-Computed Interest in Table 5.1:

  • Interest will now be computed after considering the minimum cash balance available in the Electronic Cash Ledger (ECL) from the due date till the date of tax payment, in line with Rule 88B(1) of CGST Rules, 2017
  • The system-computed interest will be auto-populated and non-editable downward
  • Taxpayers may increase the interest amount based on self-assessment, if required
  • This change applies to delayed January 2026 returns, with interest reflecting in February 2026 GSTR-3B

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

  • The Tax Liability Breakup Table in GSTR-3B will be auto-populated based on document dates of supplies reported in GSTR-1 / GSTR-1A / IFF pertaining to earlier tax periods
  • Auto-populated values are suggestive and may be modified upward, if required

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

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

  • After exhaustion of IGST ITC, the portal will allow payment of IGST liability using CGST and SGST ITC in any sequence

4. Levy of Interest in GSTR-10 for Delayed Filing of Last Applicable GSTR-3B

  • For cancelled registrations, interest on delayed filing of the last applicable GSTR-3B shall be levied and collected through GSTR-10 (Final Return)

We recommend reviewing your compliance processes to ensure correct interest computation and reporting.

Click to download a copy of the Advisory for your reference

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