GSTN Advisories: Key Enhancements in GSTR-3B, LUT Filing, Return Unbarring & Compliance Modules

During January–February 2026, the GSTN portal issued multiple advisories and updates to enhance compliance, automation, and usability under GST. Key changes include system-driven auto-computation of interest in GSTR-3B aligned with Section 50 of the CGST Act and Rule 88B, auto-population of tax liability breakup based on GSTR-1 data, and greater flexibility in ITC utilisation. An online facility for “Application for Unbarring Returns” has been enabled for taxpayers barred due to non-filing for three years, subject to approval by the jurisdictional officer. The portal has merged “Additional Notices and Orders” into a single visible tab to improve transparency and reduce litigation. Filing of LUT for FY 2026–27 is now available for zero-rated supplies. A new facility permits withdrawal from Rule 14A registration through Form GST REG-32 with Aadhaar authentication. Additionally, a separate IMS tab now displays rejected credit notes to streamline GSTR-3B reconciliation and liability adjustments. The gist of these Advisories / Updates is summarized hereunder for easy understanding:

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

GSTN has issued an advisory informing taxpayers of system-level enhancements in GSTR-3B, effective from the January 2026 tax period, primarily relating to interest computation, liability reporting and ITC utilisation, with the objective of aligning portal functionality with Section 50 of the CGST Act and Rule 88B of the CGST.

Key points of the advisory are summarised below:

• Interest on delayed filing of GSTR-3B will now be auto-computed by the system in Table 5.1, after giving credit for the minimum balance available in the Electronic Cash Ledger (ECL) from the due date till the date of tax payment, in line with the proviso to Rule 88B(1). The interest so computed will be auto-populated and non-editable downward, though taxpayers may increase it if self-assessed interest is higher.
• The Tax Liability Breakup Table in GSTR-3B will be auto-populated based on the document dates of supplies reported in GSTR-1 / GSTR-1A / IFF pertaining to earlier tax periods, where tax is being discharged in the current return. This is intended to ensure accurate period-wise attribution of liability and correct interest computation.
• The values auto-populated by the system are suggestive in nature and taxpayers are permitted to modify them upwards, based on their own records and computations.
• Under Table 6.1, once IGST ITC is fully exhausted, the portal will allow CGST and SGST ITC to be utilised in any order for payment of IGST liability, providing enhanced flexibility in ITC utilisation.
• In cases where registration is cancelled and the last applicable GSTR-3B is filed late, the interest on such delayed filing will be levied and collected through the Final Return under GSTR-10.

Overall, the advisory significantly strengthens automation and non-discretionary interest computation, improves period-wise liability reporting, and introduces operational flexibility in ITC usage, requiring taxpayers to be more vigilant while filing GSTR-3B from January 2026 onwards.

(Source: GSTN Advisory dated 30.01.2026)

GSTN update – Application for Unbarring Returns enabled

• GSTN has operationalized the Application for Unbarring Returns recently on the GSTN portal and the same is available at the “Returns” section under Services at the GSTN portal with the name of “Application for Unbarring Returns”.
• As per the provision of Rule 59(6) of CGST Rules, 2017 read with Section 39 and 47 of CGST Act, 2017, where a registered person fails to furnish return for a continuous period of three years, the GST system bars any subsequent return filing and once the system level barring was triggered the relevant return period became non-editable and the taxpayer was technically prevented to file the pending returns.
• GSTN has now enabled the online application for the same where taxpayers may apply for unbarring under services >> Returns >> Application for Unbarring Returns.
• While filing such application the taxpayers are required to provide reasons for non-filing. Post filing, the application is routed to the Jurisdictional Assessing Officer (AO) and upon satisfaction, the AO may approve the unbarring.
• Once approved, the barred returns are made available for filing.

(Source: GSTN Portal dated 04.02.2026)

GSTN update – Additional Notices & Orders tab merged with Notices and Orders

• GSTN has merged the earlier separate tab for “Additional Notices and Orders” with the “Notices and Orders” section available under services section for easy access and facilitation for the users.
• GSTN has also introduced a dedicated “Notices and Orders” tab directly on the GSTN portal dashboard as well making it prominently visible to taxpayers upon logging into the GST portal, allowing easy access to all notices and orders issued by the tax authorities without the need to navigate through multiple menus.
• This usability enhancement is aimed at improving transparency and tax payer compliance and addresses the long standing concern raised by taxpayers and professional regarding missed notices due to fragmented display across different tabs.
• The decision for this change follows extensive litigation across multiple High Courts where taxpayers challenged the validity of notices being uploaded exclusively under the Additional Notices tab of the GST portal and several writ petitions were filed contending that such uploads, violated principles of natural justice due to lack of alerts or proper visibility.
• This welcome change is expected to reduce the complexity in the GSTN portal.

(Source: Changes at GSTN Portal)

GSTN update – Filing of LUT for FY 2026-27 enabled

• GSTN has enabled the filing of Letter of Undertaking (LUT) for the Financial Year 2026–27 on the GST Portal and eligible taxpayers who are required to furnish LUT for making zero-rated supplies without payment of IGST may submit the same in required Form GST RFD-11 for the upcoming financial year.
• The option to select the relevant financial year, including FY 2025–26 and 2026–27, is now visible in the LUT filing module under User Services on the portal.
• Taxpayers who had previously furnished LUT offline for earlier periods may also upload fresh form at the GSTN portal.
• GSTN has advised all eligible registered persons to complete the LUT filing for FY 2026–27 well in advance, to avoid any last-minute inconvenience.
• This facility ensures timely compliance for exporters and suppliers undertaking zero-rated supplies, thereby facilitating seamless continuation of export-related operations.

(Source: Updates at GSTN Portal)

Facility for Withdrawal from Rule 14A (GST Registration) – GSTN

• GSTN has enabled a new online facility for eligible taxpayers to apply for withdrawal from the option availed under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal.
• Active taxpayers who are registered under Rule 14A, may apply for OPT OUT in accordance with the provisions of the law.
• As a pre-condition, the registered person shall not be allowed to file Form GST REG-32 unless he has furnished:
• returns for a period of minimum three months, if Form GST REG-32 is filed before 1st April, 2026;
• returns for a period of minimum one tax period, if Form GST REG-32 is filed on or after 1st April, 2026; and
• all the returns due for the period from the effective date of registration till the date of filing of Form GST REG-32.
• Based on data analysis, the taxpayer will have to undergo either OTP based Aadhaar authentication or Biometric based Aadhaar Authentication.
• Authentication shall be required for:
• Primary Authorised Signatory (mandatory), and
• At least one Promoter/Partner (where applicable).

ARN will be generated only after successful Aadhaar authentication.

• While Form GST REG-32 is pending after submission, taxpayer cannot file Core amendment, non-core amendment and Self-cancellation application.
• Post-sanction of Opt-Out, the taxpayer who has received an order in Form GST REG-33 allowing withdrawal shall be able to furnish the details of output tax liability on supply of goods or services or both made to registered persons, exceeding the output tax liability of Rs.2.5 lakhs, from the first day of succeeding month in which the said order has been issued.
• Following timelines shall be adhered to :
• Draft application must be submitted within 15 days of creation.
• Aadhaar/Biometric authentication must be completed within 15 days from submission.
• If authentication is not completed within the prescribed time, ARN will not be generated.
• For application,
• After login, navigate to: Services – > Registration – > Application for Withdrawal from Rule 14A. The link will be visible only if the taxpayer is registered under Rule 14A and is active.
• The field “Option for registration under Rule 14A” will be selected as “No” by default.
• Enter “Reason for withdrawal from Rule 14A”.
• Proceed to Aadhaar Authentication tab for Aadhaar Authentication of Primary Authorised Signatory and one Promoter/Partner.

(Source: GSTN Advisory dated 21.02.2026)

 GSTN Update: Separate IMS tab to display rejected credit notes

• GST portal has rolled out a new enhancement in the Invoice Management System (IMS) to simplifying the process of identifying cases where tax liability must be added back in GSTR-3B, including by way of rejection of credit notes issued by tax payers.
• A separate tab has been introduced in the Outward IMS section to specifically display Rejected Credit Notes and related entries where corresponding liability is required to be reversed or added back in the monthly return.
• Currently the taxpayers and professionals had to manually scrutinize all IMS entries and detect such cases, making the reconciliation process time-consuming and prone to oversight, which often resulted in additional effort during return filing and reconciliation.
• The introduction of this dedicated tab is a welcome step which eases GSTR-3B compliance as the system automatically categorizes and displays relevant rejected credit notes, allowing taxpayers to easily track instances where output tax liability needs to be adjusted in GSTR-3B.

(Source GSTN Portal)