GSTN Revises Interest Computation in GSTR-3B from Jan 2026, Table 5.1 of GSTR-3B to be Non-Editable
The revised formula computes interest on the net tax liability after reducing the minimum ECL balance during the relevant period, multiplied by the number of days of delay and the applicable interest rate.
The GST Network (GSTN) has issued an advisory notifying the revision of interest changes to interest computation and reporting in GSTR-3B, effective from January 2026. As per the advisory, the interest calculation in Table 5.1 of GSTR-3B has been revised to align with the proviso to Rule 88B(1) of the CGST Rules, 2017, by granting taxpayers the benefit of the minimum cash...
The GST Network (GSTN) has issued an advisory notifying the revision of interest changes to interest computation and reporting in GSTR-3B, effective from January 2026.
As per the advisory, the interest calculation in Table 5.1 of GSTR-3B has been revised to align with the proviso to Rule 88B(1) of the CGST Rules, 2017, by granting taxpayers the benefit of the minimum cash balance available in their Electronic Cash Ledger (ECL) from the due date of filing till the date of tax payment (offset).
Following Enhancement has been made in GSTR 3B w.e.f. Jan 2026
Revised Interest Computation Formula
Interest = (Net Tax Liability – Minimum Cash Balance in ECL from due date to date of debit) × (Number of days delayed / 365) × Applicable Interest Rate
This change will apply to delayed returns filed for the January 2026 tax period, with the interest auto-populated in the February 2026 GSTR-3B return.
Table 5.1 Interest to Be Non-Editable (Downward)
GSTN has clarified that the interest auto-populated in Table 5.1 will be non-editable downward. The GST payers will not be allowed to reduce the system-computed interest. However, the portal permits upward modification if the taxpayer’s own computation results in a higher interest liability.
Also, the auto-populated amount represents only the minimum interest required to be paid, and taxpayers remain responsible for correctly self-assessing their total interest liability.
Also read: GST Portal Blocks SGST Set-Off for IGST Unless CGST is Exhausted, Despite GSTN Advisory
Auto-Population of Tax Liability Breakup Table
The next revision in the GSTR 3B is the auto-population of the “Tax Liability Breakup Table” in GSTR-3B from January 2026.
The portal will auto-fill this table based on the document dates of supplies reported in GSTR-1, GSTR-1A, or IFF pertaining to previous tax periods where tax liability is discharged in the current GSTR-3B.
The breakup can be viewed under: Login → GSTR-3B Dashboard → Table 6.1 (Payment of Tax) → Tax Liability Breakup.
Updation in Table 6.1 - Suggestive Cross-Utilization of ITC
Under Table 6.1, from the January 2026 period, once IGST ITC is fully exhausted, the portal will allow IGST liability to be paid using available CGST and SGST ITC in any sequence.
Interest Collection in GSTR-10 for Cancelled Registrations
GSTN has also said that “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.”
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
