Introduction
The Goods and Services Tax Network (GSTN) has introduced a procedural update in Form GSTR-3B to ensure accurate reporting of tax liabilities across periods. This change directly impacts how taxpayers confirm liabilities that pertain to previous tax periods but are discharged in the current one. Understanding this update is crucial for compliance and avoiding interest implications under Section 50 of the CGST Act, 2017.
Advisory dated 16th March, 2026
Advisory regarding confirmation of “Tax Liability Breakup, As Applicable” in GSTR-3B-reg Mar 16th, 2026
1.) In terms of the provisions of Section 50 of the Central Goods and Services Tax (CGST) Act, 2017, interest is payable where the tax liability pertaining to a previous tax period is discharged in a subsequent tax period. Accordingly, the tab “Tax Liability Breakup, As Applicable” in Form GSTR-3B is meant to capture the tax liability relating to supplies of previous tax periods which are being reported and discharged in the current tax period.
2.) From the February 2026 tax period onwards, the GST Portal auto-populates the “Tax Liability Breakup, As Applicable” in GSTR-3B on the basis of the document dates of supplies reported in GSTR-1 / GSTR-1A / IFF, where such supplies pertain to any previous tax period but the corresponding tax liability is being discharged in the current period’s GSTR-3B.
3.) Accordingly, from the February 2026 tax period, after offsetting the liability in GSTR-3B, taxpayers are required to click on the “Tax Liability Breakup, As Applicable” tab available on the payment page and confirm the breakup of tax liability by clicking the “SAVE” button or edit the same, if required.
4.) Once the breakup of tax liability is confirmed and saved, the taxpayer will be able to proceed with filing Form GSTR-3B using EVC or DSC.
5.) Feedback has been received that this confirmation should be mandatory only in cases where supplies pertaining to previous tax periods have been reported in the current tax period. However, the confirmation is presently being required in all cases, including where the liability relates only to the current tax period. The feedback is acknowledged by GSTN and the same is under resolution.
6.) Meanwhile, taxpayers are requested to kindly open the “Tax Liability Breakup, As Applicable” tab on the payment page and click “SAVE” within the tab for filing during the current reform cycle. Thereafter, filing of Form GSTR-3B can be completed normally.
Taxpayers are requested to kindly follow the above interim procedure till the issue is resolved on the portal.
Thanks,
Team GSTN
Key Changes from Feb 2026 Tax period:
1. Auto-Population of Liability
- Supplies pertaining to previous tax periods, reported in the current period, are now automatically reflected in the breakup tab.
2. Mandatory Confirmation
- Taxpayers must confirm the breakup by clicking SAVE before filing.
- This step is currently required in all cases, even when liabilities relate only to the current tax period.
3. Feedback & Resolution
- Stakeholders have suggested that mandatory confirmation should apply only when previous period supplies are involved.
- GSTN has acknowledged this feedback and is working on a resolution.
4. Interim Procedure
- Until the issue is resolved, taxpayers are requested to continue opening the tab and clicking SAVE for every filing cycle.
Conclusion
The introduction of the “Tax Liability Breakup, As Applicable” tab in GSTR-3B is a step toward greater transparency and compliance in GST reporting. While the current requirement may feel repetitive for liabilities confined to the same period, taxpayers should diligently follow the interim procedure to avoid filing disruptions. GSTN’s acknowledgment of feedback signals that refinements are on the way, ensuring smoother compliance in future cycles.
Action Point for Taxpayers:
For Feb 2026 tax period and onwards, confirm the breakup by clicking SAVE before filing GSTR-3B, regardless of whether liabilities pertain to current or previous tax periods, until further updates are rolled out.
Blog By : Mittal & Co.