POST #30 – GST ADVISORY UPDATE

 📢 GST Advisory Update – 30th January 2026

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

GSTN has issued an important advisory informing taxpayers about new enhancements in interest computation and reporting in GSTR-3B, applicable from January 2026 tax period onwards.

GSTN has issued an important advisory informing taxpayers about new enhancements in interest computation and reporting in GSTR-3B, applicable from January 2026 tax period onwards.

🔹 Key Updates Introduced:

✔ Revised Interest Computation Method

Interest will now be calculated after giving benefit of minimum cash balance available in Electronic Cash Ledger (ECL) from due date till date of payment, as per Rule 88B(1).

📌 Revised Formula:

Interest = (Net Tax Liability – Minimum Cash Balance in ECL) × (Delay Days ÷ 365) × Interest Rate

🔹 Table 5.1 – Interest (GSTR-3B):

✔ Interest will be auto-populated by system

✔ Auto-populated value is non-editable downward

✔ Taxpayer may increase interest manually, if required

✔ Auto value represents minimum interest payable

🔹 Auto-Population of Tax Liability Breakup:

From Jan-2026 onwards, GST Portal will auto-populate Tax Liability Breakup Table based on:

• Supplies of previous periods

• Reported in GSTR-1 / GSTR-1A / IFF

• Tax paid in current GSTR-3B

📍 Path:

Login → GSTR-3B Dashboard → Table 6.1 → Tax Liability Breakup

🔹 ITC Utilization Enhancement (Table 6.1):

✔ After exhausting IGST ITC,

✔ IGST liability can be paid using CGST & SGST ITC in any order

🔹 Interest Collection via GSTR-10:

✔ For cancelled GST registrations,

✔ If last GSTR-3B is filed late,

✔ Interest will be collected through GSTR-10 (Final Return)

⚠️ Taxpayers are advised to review interest calculations carefully and ensure correct compliance to avoid future notices.

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