GSTN Advisory: Confirmation of “Tax Liability Breakup, As Applicable” in GSTR-3B (New Filing Step Explained)
Published: 16 March 2026
Category: GST Updates | GSTR-3B | Compliance
The Tax Liability Breakup GSTR-3B feature has recently been updated by GSTN., The GSTN advisory on Tax Liability Breakup GSTR-3B requires taxpayers to confirm the liability details before filing the return
This advisory clarifies the procedure taxpayers must follow while filing GSTR-3B from the February 2026 tax period onwards. The update is part of system enhancements introduced on the GST Portal to improve transparency and ensure correct reporting of tax liabilities related to previous tax periods.
In this article, we explain the advisory in simple terms, its legal background, and what taxpayers need to do while filing their GSTR-3B returns.
Background: Interest Liability Under Section 50 of CGST Act
Under Section 50 of the CGST Act, 2017, interest becomes payable when tax liability pertaining to an earlier tax period is discharged in a later tax period.
In many situations, taxpayers report invoices of earlier months in the current period’s GSTR-1, but pay the corresponding tax later while filing GSTR-3B.
To capture such cases accurately, the GST Portal includes a table called:
“Tax Liability Breakup, As Applicable”
This section records the tax liability that belongs to earlier tax periods but is being paid in the current return.
Tax Liability Breakup GSTR-3B Auto-Population
Starting from the February 2026 tax period, the GST Portal automatically populates the “Tax Liability Breakup, As Applicable” section.
The auto-population is based on:
- Document dates reported in GSTR-1
- Amendments made in GSTR-1A
- Supplies reported through Invoice Furnishing Facility (IFF)
If the document date of a supply belongs to a previous tax period, but the tax is being paid in the current GSTR-3B, the system will automatically reflect this information in the breakup table.
This enhancement improves reconciliation between outward supply reporting and tax payment, helping tax authorities identify delayed reporting and delayed payment scenarios.
Mandatory Confirmation Required Before Filing GSTR-3B
From the February 2026 tax period onwards, taxpayers must confirm the tax liability breakup before filing their return.
After completing tax offset in GSTR-3B:
- Go to the Payment Page.
- Open the tab “Tax Liability Breakup, As Applicable”.
- Review the auto-populated details.
- Click SAVE to confirm the breakup.
If corrections are required, the taxpayer can edit the breakup before saving.
Only after completing this confirmation step will the portal allow filing of Form GSTR-3B using EVC or DSC.
Issue Reported by Taxpayers
Many taxpayers and professionals have provided feedback regarding the new functionality.
Ideally, the confirmation requirement should apply only when supplies of previous tax periods are reported in the current return.
However, currently the GST Portal requires confirmation in all cases, even when:
- All supplies belong to the current tax period
- There is no previous-period liability
This has created an additional compliance step during return filing.
GSTN has acknowledged this issue and stated that the matter is under resolution.
Interim Procedure for Filing GSTR-3B
Until the issue is resolved on the portal, taxpayers should follow the temporary procedure below:
- Open the “Tax Liability Breakup, As Applicable” tab.
- Click SAVE within the tab.
- Continue the normal return filing process.
Once the breakup is saved, taxpayers can complete the filing of Form GSTR-3B without any further restriction.
Why This Change Was Introduced
The GSTN has been implementing several system-level improvements in GSTR-3B filing, including:
- Automated interest calculation
- Auto-population of tax liabilities
- Improved reporting of past-period supplies
- Better reconciliation between GSTR-1 and GSTR-3B
The Tax Liability Breakup Table helps authorities track cases where taxpayers report earlier supplies late and discharge the tax liability in later returns.
Such enhancements aim to improve transparency and reduce discrepancies in GST return filings.
Practical Example
Consider the following example:
A taxpayer issued an invoice dated December 2025, but mistakenly reported it in GSTR-1 of February 2026.
The tax liability relating to this invoice will be discharged while filing GSTR-3B for February 2026.
In this case:
- The supply belongs to December 2025
- Tax is paid in February 2026 GSTR-3B
The portal will automatically populate this transaction in the “Tax Liability Breakup, As Applicable” table.
The taxpayer must confirm this breakup before filing the return.
Compliance Impact for Taxpayers
This advisory has several implications for businesses and tax professionals.
1. Additional Filing Step
Taxpayers must now review and confirm the tax liability breakup before filing GSTR-3B.
2. Better Period-wise Reporting
The enhancement ensures that tax liabilities are linked with the correct tax period based on invoice dates.
3. Increased Portal Automation
GSTN continues to automate return filing processes to reduce manual errors.
4. Improved Transparency
Authorities can easily identify cases where supplies are reported late but tax is paid later.
Important Points to Remember
- The new confirmation step applies from February 2026 tax period onwards.
- The Tax Liability Breakup table is auto-populated by the GST Portal.
- Taxpayers must click SAVE to confirm the breakup before filing GSTR-3B.
- GSTN has acknowledged feedback regarding unnecessary confirmations and is working to resolve the issue.
Final Thoughts
The GSTN advisory on confirmation of “Tax Liability Breakup, As Applicable” in GSTR-3B is part of ongoing system enhancements aimed at improving GST compliance and reporting accuracy.
While the feature improves transparency, the current requirement to confirm the breakup in all cases has created some inconvenience for taxpayers.
Until the portal update is implemented, taxpayers should follow the temporary procedure of opening the breakup tab and clicking SAVE before filing GSTR-3B.
Businesses and tax professionals should also ensure that invoice dates reported in GSTR-1 are accurate, as the portal now relies on these dates to determine the tax liability breakup.
FAQs
What is Tax Liability Breakup in GSTR-3B?
It is a section in GSTR-3B that captures tax liability relating to previous tax periods but paid in the current return.
From when is confirmation required?
Confirmation of the tax liability breakup is required from the February 2026 tax period onwards.
Is confirmation mandatory even if there is no previous-period liability?
Currently, yes. The portal requires confirmation in all cases, although GSTN has acknowledged that this issue is under resolution.
What should taxpayers do if the table is empty?
Taxpayers should still open the tab and click SAVE, after which they can proceed with filing GSTR-3B normally.