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

The GST Network has issued an advisory introducing significant system enhancements in GSTR-3B beginning with the January 2026 tax period, primarily impacting interest computation, tax liability reporting, and input tax credit utilization. A key change is the revised interest calculation in Table 5.1, where the portal now factors in the minimum balance available in the Electronic Cash Ledger (ECL) from the return due date until the date of tax payment, in line with Rule 88B(1) of the CGST Rules. The system will auto-compute and auto-populate this interest, which cannot be reduced by taxpayers but may be increased through self-assessment. Additionally, a new auto-populated Tax Liability Breakup Table will reflect supplies of earlier periods reported later through GSTR-1, GSTR-1A, or IFF, improving transparency and aligning interest liability with Section 50 of the CGST Act. The portal will also enable more flexible cross-utilization of ITC after IGST credit is exhausted, allowing payment of IGST liability using CGST and SGST credits in any sequence. Further, interest on delayed filing of the last GSTR-3B by cancelled taxpayers will now be collected through GSTR-10. These updates aim to standardize compliance, reduce calculation errors, and ensure accurate interest determination.

Goods and Services Tax
Government of India, States and Union Territories

GSTN Advisory on Interest calculation functionality in GSTR 3B.

Jan 30th, 2026

Advisory on Interest Collection and Related Enhancements in GSTR-3B It is hereby informed that from January-2026 period onwards, the following enhancement have been made in filing of GSTR-3B:

https://tutorial.gst.gov.in/downloads/news/advisory_on_interest_calculator.pdf

Thanks,
Team GSTN

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’ tax period for which interest shall be auto-populated in February 26’ tax period’s GSTR-3B. The revised interest computation formula is mentioned below for 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 capture the supplies of previous tax periods, reported in current period. The tax is being paid for such supplies in current tax period. Hence, for the filing of GSTR-3B from January-2026 tax period onwards, the GST Portal shall auto-populate the “Tax Liability Breakup Table” in GSTR-3B on the basis of 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 proviso of Section 50 of CGST Act, 2017.

Key Features

• Auto-populated values are suggestive in nature.
• Taxpayers may modify upwards these values 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 to pay 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.

Disclaimer – This advisory has been prepared solely for educational purposes. It is not a legal advice hence, taxpayer must rely on statutory provisions for compliance requirements. For any official or legal purpose, please refer to the applicable GST laws, rules, and notifications