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.

📄 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.

❗ 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.