The GST Network (GSTN) has issued an advisory dated 30 January 2026 introducing important system-level enhancements in GSTR-3B, aimed at improving accuracy and aligning interest computation with statutory provisions. The key changes are summarised below for your reference and compliance.
1. System-Computed Interest in Table 5.1
- Interest liability will now be auto-computed by the GST portal.
- While calculating interest, credit will be given for the minimum cash balance available in the Electronic Cash Ledger (ECL) from the due date till the actual date of payment.
- This change is in line with Rule 88B(1) of the CGST Rules.
2. Auto-Computed Interest – Non-Editable Downwards
- The interest amount auto-calculated by the system will represent the minimum payable interest.
- Taxpayers cannot reduce this interest amount.
- However, taxpayers may increase the interest voluntarily, if required, based on self-assessment.
3. Auto-Population of Tax Liability Break-up
- The tax liability break-up table in GSTR-3B will now be auto-populated based on:
- Document dates of past-period supplies
- Reported earlier in GSTR-1 / GSTR-1A / IFF
- But discharged in the current tax period
- This ensures correct interest computation in accordance with Section 50 of the CGST Act.
4. Flexibility in Utilisation of ITC for IGST
- Once IGST ITC is fully utilised, taxpayers may discharge IGST liability using CGST and SGST ITC in any order, without any mandatory sequence.
5. Interest on Final Return for Cancelled Registrations
- In cases of cancelled GST registrations, interest on delayed filing of the last GSTR-3B shall be recovered through GSTR-10 (Final Return).
Action Points for Taxpayers
- Ensure adequate cash balance in ECL before due dates to minimise interest.
- Review auto-computed interest carefully before filing GSTR-3B.
- Monitor past-period supplies reported in GSTR-1/IFF to avoid unintended interest exposure.
- Plan ITC utilisation efficiently under the revised flexibility rules.
For any clarification or assistance in implementation of the above changes, please feel free to contact us.