The GST Portal has issued an advisory for taxpayers regarding incorrect system-calculated interest for February 2026, which was auto-populated in March 2026 GSTR-3B.

The advisory provides step-by-step guidance for taxpayers to:

Verify the system-calculated interest

Recompute interest using the portal functionality

Refer to the updated system-generated GSTR-3B PDF

Taxpayers can use the “Re-compute Interest” option in Table 5.1, which recalculates interest correctly

After recomputation:

Refer to the updated system-generated PDF

Manually edit Table 5.1 if required

Ensure entered interest is not less than recomputed value

As per Section 107(6) of the CGST Act, 2017, a 10% pre-deposit is required for filing an appeal in Form GST APL-01.

Earlier, this pre-deposit field was auto-populated and non-editable

The GSTN update enabling an editable pre-deposit field in Form APL-01 (effective April 6, 2026)

Taxpayers can modify the percentage/amount based on actual requirement.

This amendment improves accuracy and reduces practical difficulties in appeal filing on the GST portal.

Taxpayers face problems filing appeals (APL-01) when adjudication orders show “NIL” demand.

This usually happens when payment is made during the Show Cause Notice (SCN) stage without accepting liability.

GST portal generates a Demand ID in DCR (liability ledger) with zero amount.

If demand order reflects NIL, portal blocks appeal filing with error: “Disputed amount cannot be more than demand amount itself.”

Payment at SCN stage without admission of liability does not equal acceptance of demand.

Taxpayers retain right to appeal under Section 107 of CGST Act, 2017.

Taxpayer should request rectification order from adjudicating authority. Rectification order must reflect correct demand amount.

After correct demand is reflected, appeal can be filed within time limits.

Finance Act, 2026 (Act No. 4 of 2026) received Presidential assent on 30^th March 2026 .

GST-related changes specified in Section 153 to 157 of the Finance Act 2026 relates to Amendment to Section 15(3)(b) (Valuation), Section 154 – Amendment to Section 34(1) (Credit Notes), Section 155 – Amendment to Section 54 (Refunds), Section 156 – Appellate Authority,Section 157 – IGST Amendment.

Interest applies if tax liability of a previous period is discharged in a later period.

GST portal auto-fills the breakup based on document dates in GSTR-1 / GSTR-1A / IFF. This applies when supplies belong to earlier periods but liability is discharged in the current GSTR-3B.

After offsetting liability in GSTR-3B, taxpayers must open the “Tax Liability Breakup, As Applicable” tab. Confirm or edit the breakup. Click SAVE to proceed.

Once saved, filing can be completed using EVC or DSC. Confirmation is currently required in all cases, even when liability relates only to the current period.

Taxpayers must still open the tab and click SAVE before filing. This step is mandatory until the portal issue is resolved.

Taxpayers sometimes pay amounts during investigation using Form GST DRC-03.

When a demand order (e.g., DRC-07) is issued, a Demand ID is created in Part II of the Electronic Liability Register.

Payments made through “Payment towards Demand” are automatically linked to the Demand ID.

While filing an appeal, the GST system checks payments linked to the Demand ID in the liability register.

If the linked payment is equal to or more than the required amount, appeal can be filed without additional payment. If the linked payment is less, the portal asks for balance pre-deposit.

Taxpayers must file Form GST DRC 03A to link the DRC-03 payment with the relevant Demand ID. Once linked, the payment reflects in the Liability Register and is recognized during appeal filing.

Form APL-05 must include soft copies of key documents such as SCN, OIO, OIA, Statement of Facts, and Grounds of Appeal. For taxpayer appeals, pre-deposit and court fee are mandatory, unless a Higher Court has granted exemption—in such cases, no defect should be raised.

The appellant must also upload an authorization letter or vakalatnama if represented by a professional or advocate.

For Departmental appeals under Section 112(3), required documents include

SCN,

Order in Original (OIO),

Order in Appeal (OIA),

Commissioner’s authorization,

Statement of Facts, and

Grounds of Appeal.

No court fee or pre-deposit is required, and only verification and digital signature are needed.

This guideline is issued with the approval of the President, GSTAT.

GSTN has enabled online filing of Form GST REG-32 on the GST Portal for withdrawal from Rule 14A option.

Active taxpayers registered under Rule 14A can apply for opting out in accordance with the provisions of the law.

After Login → Services → Registration → Application for Withdrawal from Rule 14A. “Option for registration under Rule 14A” auto-selected as No.

Mention reason for withdrawal. Complete Aadhaar authentication (Primary Authorised Signatory + one Promoter/Partner)

Return Filing Conditions:

If filed before 01.04.2026 → Minimum 3 months’ returns to be filed

If filed on/after 01.04.2026 → Minimum 1 tax period return to be filed

All returns from registration date till application date must be filed

The Primary Authorised Signatory must complete it, and at least one Promoter/Partner (if applicable) must also authenticate. Only after successful Aadhaar authentication will the Application Reference Number (ARN) be generated.

Draft application to be submitted within 15 days. Aadhaar/Biometric authentication must be completed within 15 days from submission. If authentication is not completed within the prescribed time, ARN will not be generated.

Core amendment, non-core amendment, and self-cancellation applications cannot be filed while REG-32 is pending

In continuation of the advisory dated 30^th January 2026 issued on the GST Portal, an important update has been provided regarding ITC utilisation.

From the February 2026 tax period onwards, taxpayers can utilise CGST or SGST Input Tax Credit (ITC) for payment of IGST liability, in any order, after fully exhausting IGST credit

The Finance Bill 2026 was introduced in the Lok Sabha on 1 February 2026 to implement the government’s financial proposals for the 2026–27 fiscal year.

It outlines changes to direct and indirect tax laws, including income-tax rates, surcharge and cess provisions, and amendments affecting GST, customs, securities transaction tax and compliance rules.

Few enhancements have been made in filing of GSTR-3B

Interest will now be calculated after giving benefit of the minimum cash balance available in Electronic Cash Ledger from due date till tax payment, as per Rule 88B(1).

Interest will be auto-populated and non-editable

GST Portal will auto-populate tax liability pertaining to previous periods but paid in current period, based on document dates in GSTR-1 / GSTR-1A / IFF.

After full utilization of IGST ITC, remaining IGST liability can be paid using CGST and SGST ITC in any order

For cancelled registrations, interest on delayed filing of the last GSTR-3B will be levied and collected via GSTR-10 (Final Return).

The advisory clarifies the correct method of reporting taxable value and tax liability for RSP-based valuation goods in e-Invoice, e-Way Bill and GSTR-1 / GSTR-1A / IFF

Taxpayers dealing in notified tobacco products must carefully follow the prescribed reporting mechanism to avoid validation errors and ensure accurate GST discharge.

Declarations for treating hotel accommodation as “Specified Premises” are now required to be filed electronically on the GST Portal as per Notification No. 05/2025–CT (Rate). Only eligible regular taxpayers can file the declaration within the prescribed timelines under Annexure VII or VIII. From FY 2026–27 onwards, electronic filing between 1st January and 31st March is mandatory, whereas FY 2025–26 allowed manual filing.