GSTN Advisory dated 30th January 2026: Interest Collection and Related Enhancements in GSTR-3B

An Advisory has been issued outlining certain enhancements introduced in the filing process of GSTR-3B, effective from the tax period January 2026 onwards. The interest computation mechanism in Table 5.1 of GSTR-3B on the portal has been enhanced to allow consideration of the minimum balance available in the taxpayer’s Electronic Cash Ledger from the due date of filing the return up to the actual date of tax payment (offset), in accordance with the proviso to Rule 88B (1) of the CGST Rules, 2017. For clarity and ease of reference, the updated formula for calculating interest is set out below:

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

The interest amount auto-populated in Table 5.1 of GSTR-3B, as per the revised computation formula, shall remain non-editable, and taxpayers will not be permitted to reduce such figures. It is clarified that the auto-populated amount represents only the minimum interest payable. Furthermore, the GST Portal shall auto-populate the “Tax Liability Breakup Table” in GSTR-3B based on the date of the documents related to supplies reported in GSTR-1, GSTR-1A, or IFF for any previous tax periods. 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.

Upon full utilisation of the available IGST ITC, the GST Portal will permit discharge of the remaining IGST liability in Table 6.1 of GSTR-3B by using the available CGST and SGST ITC in any order. However, for taxpayers whose registration has been cancelled and where the last applicable GSTR-3B is filed beyond the prescribed due date, the interest arising on account of such delay shall be computed and recovered through the Final Return, i.e., GSTR-10.