From the January 2026 tax period onwards, GSTN has enhanced the system-based calculation of interest in GSTR-3B. While calculating interest on delayed filing, the system now gives the benefit of the minimum balance available in the Electronic Cash Ledger (ECL) from the due date of filing until the date of tax payment, in line with the proviso to Rule 88B(1) of the CGST Rules. GSTN has also made the system-computed minimum interest in Table 5.1 non-editable downwards, although taxpayers can increase the amount where their self-assessed liability is higher.

How Does It Matter to Businesses?

This is particularly relevant where a business had already deposited money into its Electronic Cash Ledger but filed GSTR-3B late. The revised computation can reduce the interest burden because the qualifying cash balance maintained in the ledger is considered while determining interest.

Businesses should, however, not rely blindly on the auto-populated figure. GSTN specifically states that the system-generated amount represents the minimum interest required to be paid, and taxpayers remain responsible for assessing whether any additional interest is payable. Finance teams should therefore reconcile the filing delay, tax liability, ECL balance and actual date of offset before filing GSTR-3B.

Mardia Global | GST & Accounting Insights for Businesses in India