MOHAN & CHANDRASEKHAR
CHARTERED ACCOUNTANTS
Hosur | Bengaluru | Chennai
⚠️ URGENT ACTION REQUIRED ⚠️
GSTR-3B FILING CHANGED!
New Mandatory Step Before You Can File
Effective from February 2026 Tax Period Onwards
Advisory Circular No. MC/GST/2026-03 Date: 16th March 2026
WHAT HAS CHANGED?
The GST Network (GSTN) has introduced a new mandatory step in the GSTR-3B filing process. Pursuant to Section 50 of the CGST Act, 2017, interest is leviable where tax liability of a previous tax period is discharged in a subsequent period. To operationalise this provision accurately, GSTN has enabled auto-population of the “Tax Liability Breakup, As Applicable” tab in Form GSTR-3B, effective from the February 2026 return period.
This tab captures tax liability pertaining to prior tax periods reported in the current month’s GSTR-1/GSTR-1A/IFF but discharged through the current period’s GSTR-3B.
WHAT MUST YOU DO — STEP BY STEP?
Step 1: Open Form GSTR-3B on the GST Portal as usual.
Step 2: After offsetting your tax liability, navigate to the Payment Page.
Step 3: Click on the “Tax Liability Breakup, As Applicable” tab on the Payment Page.
Step 4: Review the auto-populated breakup of tax liability. Edit if required.
Step 5: Click the “SAVE” button within the tab.
Step 6: Proceed to file GSTR-3B using EVC or DSC as normal.
⚠ PLEASE NOTE: GSTN has acknowledged that this SAVE step is presently being triggered even in cases where all supplies belong to the current tax period only. This is a known portal issue under resolution. Till the issue is resolved, the SAVE step is mandatory for ALL taxpayers. Skipping this step will prevent filing of GSTR-3B.
LEGAL BASIS
Section 50 of the CGST Act, 2017 mandates payment of interest where tax for a previous period is paid belatedly — including where the liability arises in an earlier period but is declared and paid in a later period’s GSTR-3B. The new portal feature directly links to this interest computation mechanism, making accurate breakup confirmation critical.
WHAT IS THE RISK OF NON-COMPLIANCE?
Practically: You will be unable to complete the GSTR-3B filing if the SAVE step is not completed.
Legally: Incorrect or incomplete declaration of prior-period liability breakup may expose the taxpayer to interest demands under Section 50 of the CGST Act.
OUR ADVICE: Please alert your accounting team and GST return preparers immediately. Ensure the “Tax Liability Breakup, As Applicable” tab is opened and SAVED before every GSTR-3B filing going forward. For clients who have already filed February 2026 GSTR-3B, verify the portal records confirm successful filing. Contact us if you need any assistance.
Source: GSTN Advisory dated 16th March 2026 — “Advisory regarding confirmation of ‘Tax Liability Breakup, As Applicable’ in GSTR-3B” — published on www.gst.gov.in.
Mohan & Chandrasekhar, Chartered Accountants | Hosur | Bengaluru | Chennai
This circular is for information and guidance of clients. It does not constitute formal legal advice. For specific guidance on your matter, please contact us.