GSTN Advisory, Dated 30-01-2026
The Goods and Services Tax Network (GSTN) has issued an advisory announcing system-level enhancements in the filing of GSTR-3B, applicable from the January 2026 tax period onwards. The changes aim to align interest computation and tax liability reporting with the CGST Rules while improving accuracy and automation on the GST portal.
1. Revised Interest Computation in Table 5.1 of GSTR-3B
GSTN has revised the interest calculation mechanism in Table 5.1 of GSTR-3B to provide taxpayers the benefit of the minimum cash balance available in the Electronic Cash Ledger. This benefit will be available from the due date of return filing up to the actual date of tax payment, in line with the proviso to Rule 88B(1) of the CGST Rules.
For delayed filing of returns for the January 2026 tax period, the applicable interest will be auto-populated in the GSTR-3B of February 2026, ensuring system-driven computation of interest liability.
2. System-Generated Interest: Minimum Payable Amount
The interest amount generated by the portal will be non-editable downward and will represent the minimum interest payable by the taxpayer. However, taxpayers will be allowed to revise the interest amount upward, where required, based on their self-assessment and specific factual circumstances.
3. Auto-Population of Tax Liability Break-up Table
The GST portal will now auto-populate the Tax Liability Break-up Table in GSTR-3B based on document dates reported in GSTR-1, GSTR-1A, or the Invoice Furnishing Facility (IFF). This applies to cases where the underlying tax liability pertains to earlier tax periods but is being discharged in the current return period, thereby improving reconciliation between outward supply disclosures and tax payment.
4. Flexibility in Utilisation of IGST Liability Using ITC
Once the available IGST Input Tax Credit (ITC) is fully utilised, the system will allow taxpayers to discharge the remaining IGST liability using available CGST and SGST ITC in any order. This enhancement provides greater flexibility in credit utilisation and aligns the portal functionality with statutory provisions.
5. Interest Recovery in Case of Cancelled Taxpayers
For cancelled taxpayers, where the last applicable GSTR-3B is filed after the due date, the applicable interest will be levied and collected through GSTR-10. This ensures proper recovery of interest liabilities even after cancellation of registration.
6. Compliance Takeaways
These enhancements reflect GSTN’s continued focus on automation, accuracy, and rule-based compliance, while reducing manual intervention and interpretational issues. Taxpayers should review their return filing processes, interest computations, and ITC utilisation strategies to align with the revised system functionality from January 2026 onwards.
