The GST Network has issued an advisory introducing major system-level enhancements in GSTR-3B effective from the January 2026 tax period. The most significant change relates to interest computation, where taxpayers will now receive credit for the minimum cash balance maintained in their Electronic Cash Ledger while calculating delayed payment interest, in line with Rule 88B and Section 50 of the CGST Act.
Additionally, the GST Portal will auto-populate the tax liability breakup for past-period supplies paid in the current return, enable flexible cross-utilisation of CGST and SGST ITC after exhaustion of IGST credit, and recover interest for delayed final returns of cancelled registrations through GSTR-10. These measures aim to reduce disputes, improve accuracy, and streamline GST compliance.
Official copy of the advisory is as follows
It is hereby informed that from January 2026 period onwards, the following enhancement have been made in filing of GSTR-3B.
1. 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.
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
1.1 System-Computed Interest in Table 5.1
The interest auto-populated on the basis of the revised computational formula shall be non-editable and taxpayers would not be allowed to amend the auto-populated values downward.
The interest auto-populated in GSTR-3B is only the minimum interest required to be paid. Taxpayers need to self-assess and amend the value upward, if required.
2. Auto-Population of Tax Liability Breakup Table in GSTR-3B
From January-2026 onwards, the GST Portal shall auto-populate the "Tax Liability Breakup Table" in GSTR-3B based on the date of documents reported in GSTR-1 / GSTR-1A / IFF pertaining to previous tax periods, where tax is 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 values upwards based on their records
The auto-populated breakup can be viewed at:
Login → GSTR-3B Dashboard → Table 6.1 → Tax Liability Breakup
3. Update in Table 6.1 - Suggestive Cross-Utilisation of ITC
From January-2026 period onwards, once available IGST ITC is exhausted, the portal will allow payment of IGST liability using CGST and SGST ITC in any sequence.
4. Collection of Interest in GSTR-10
For cancelled taxpayers, if the last applicable GSTR-3B is filed after the due date, interest on delayed filing shall be levied and collected through Final Return i.e., GSTR-10.
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