GST Update: Issue of Wrong Interest Calculation in GSTR-3B Returns

The GSTN has released a significant advisory dated 16 April 2026 regarding the recalculation of interest under Table 5.1 of GSTR-3B. The advisory highlights a technical issue where the system-generated interest for February 2026 was incorrectly computed and subsequently auto-populated in the March 2026 GSTR-3B for certain taxpayers.

This update is important for taxpayers to ensure accurate self-assessment of interest liability and to avoid excess payments or potential future disputes.

👉 Click here to download the advisory

🔍 System-Generated Interest – Working Mechanism

As a facilitation feature, the GST portal provides an automated system to compute interest on delayed filing of GSTR-3B. The system:

  • Calculates interest based on:
    • Tax liability discharged
    • Details reported in the “Tax Liability Breakup, As Applicable” table
  • The computed interest is:
    • Auto-populated in Table 5.1
    • Collected in the subsequent GSTR-3B return period

👉 This mechanism is similar to late fee computation, which is also calculated after filing and reflected in the next return cycle.

đź“„ Where to Verify Interest Calculation

Taxpayers can review the detailed interest computation through the System Generated GSTR-3B PDF.

🔎 Navigation Path:
Login → Return Dashboard → Select Return Period → GSTR-3B → Prepare Online → System Generated GSTR-3B PDF

This document provides a complete breakup of the interest calculation and should always be checked before filing.

⚠️ Issue Identified for February 2026

GSTN has identified that, due to a technical glitch:

  • Interest for February 2026
  • Reflected in March 2026 GSTR-3B (Table 5.1)

👉 May have been incorrectly computed for certain taxpayers.

âť— Root Cause

The issue arose because the system did not consider the benefit of the minimum balance available in the Electronic Cash Ledger, as required under:

👉 Rule 88B(1) proviso of the CGST Rules, 2017

🛠️ GSTN Solution – Recompute Interest

To address this issue, the GST portal has introduced a functionality to recompute interest.

👉 Steps to follow:

  • Navigate to Table 5.1 of GSTR-3B
  • Click on the “RE-COMPUTE INTEREST” button

The system will:

  • Recalculate interest using updated parameters
  • Consider the correct Electronic Cash Ledger balance

The revised interest amount will be reflected in the updated System Generated GSTR-3B PDF.

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