Starting from the January 2026 tax period, the Goods and Services Tax Network (GSTN) will implement enhancements to the GSTR-3B form, focusing on interest computation and liability reporting. Interest will be auto-computed in Table 5.1 of GSTR-3B by considering the minimum cash balance in the Electronic Cash Ledger from the return filing due date to the tax payment date, as per Rule 88B(1). This interest will be non-editable downward, although taxpayers can increase it based on self-assessment. The auto-computed interest will indicate the minimum payable interest.

Additionally, the tax liability breakup table will be auto-populated for GSTR-3B filings from January 2026, using document dates reported in GSTR-1, GSTR-1A, or IFF from previous periods where tax is paid in the current return. This aims to streamline the reporting process. Moreover, the system will offer more flexibility in Input Tax Credit (ITC) utilisation by allowing payment of IGST liability using CGST and SGST ITC in any sequence, once IGST ITC is fully used, as noted in Table 6.1.

For taxpayers whose GST registration has been cancelled, if they file their final GSTR-3B late, the applicable interest will be recovered through the Final Return (GSTR-10). These updates are designed to enhance efficiency and accuracy in GST compliance.