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Indirect Taxation

March 2026

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

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

It is hereby informed that from January-2026 period onwards, the following enhancements have been made in the filing of GSTR-3B:

Update in Interest Computation for GSTR-3B

  • From January-2026 tax period onwards, the interest calculation in table 5.1 of GSTR-3B on portal has been enhanced, providing the benefit of the minimum cash balance available in the Electronic Cash Ledger of the taxpayer from the due date of return filing until the date of tax payment (offset) in line with the proviso to Rule 88B(1) of the CGST Rules, 2017. The said change shall be applicable on the delayed returns filed for January 26’s tax period, for which interest shall be auto-populated in February 26’s tax period’s GSTR-3B. The revised interest computation formula is mentioned below for the better understanding of the taxpayers.

    Revised Interest Computation Formula

    Interest = (Net Tax Liability – Minimum Cash Balance in ECL from due date to date of debit) × (No. of days delayed / 365) × Applicable Interest Rate

1. System-Computed Interest in Table 5.1

The interest auto-populated on the basis of the revised computational formula mentioned above, in Table 5.1 of GSTR-3B, shall be non-editable and taxpayers would not be allowed to amend the auto-populated values downward. It may be noted that the interest autopopulated in GSTR-3B is only the minimum interest that is required to be paid by the taxpayer. However, the taxpayers needed to self-assess their correct interest liability and amend the auto-populated values upward, if required.

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

The ‘tax liability breakup table’ in GSTR-3B captures the supplies of previous tax periods, reported in the current period. The tax is being paid for such supplies in the current tax period. Hence, for the filing of GSTR-3B from the January 2026 tax period onwards, the GST Portal shall auto-populate the “Tax Liability Breakup Table” in GSTR-3B on the basis of the date of documents related to supplies reported in GSTR-1 / GSTR-1A / IFF pertaining to any previous tax period. Where the corresponding tax liability has been discharged in the current period’s GSTR-3B, this enhancement is intended to assist taxpayers in accurate reporting of tax liability and align the computation of interest as per the proviso of Section 50 of the CGST Act, 2017.

Key Features

  • Auto-populated values are suggestive in nature.
  • Taxpayers may modify these values upwards based on their own records and computations, if required.

 The auto-populated breakup can be viewed at:

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

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

From January-2026 period onwards, once the available IGST ITC has been fully exhausted, the GST Portal will allow paying IGST liability in Table 6.1 of GSTR-3B using available CGST and SGST ITC in any sequence.

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

In case of cancelled taxpayers, if the last applicable GSTR-3B return has been filed after the due date, then the interest applicable on such delayed filing shall be levied and collected through the Final Return i.e., GSTR-10.