Khata Billing solves the daily invoicing headache for small merchants under GST with zero cost, offering compliant invoice generation within the free plan's limits of 10 invoices a day and 100 per 30 days while automatically applying GSTIN, CGST, SGST or IGST as required.

When you issue an invoice at your shop counter, the system records the transaction with the correct GST rates, assigns sequential invoice numbers, and prints barcode labels for easy tracking — all without any fees, so you keep more cash for inventory or staff wages.

For GST compliance, Khata Billing ensures every invoice includes the mandatory GSTIN of buyer and seller, proper HSN or SAC codes, and accurate tax breakdowns that feed directly into your GSTR-1 filing, eliminating manual spreadsheet errors that often trigger notices from tax authorities.

The platform also supports UPI payments directly on the invoice, allowing customers to pay instantly via apps like Google Pay or PhonePe, which creates a digital payment trail that matches your accounting records and simplifies reconciliation at month-end.

With basic inventory tracking that updates stock levels when you create an invoice, you avoid overselling or stockouts, and the customizable dashboard shows real-time sales summaries that help you plan better without hiring an accountant.

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Khata Billing integrates UPI payments directly into its free invoicing process, allowing merchants to generate GST-compliant invoices and receive UPI payments in one seamless flow. To start, the merchant creates a new invoice in Khata Billing using the free plan, which allows up to 10 invoices per day and 100 in any 30-day period. After selecting the customer, entering item details, and applying GST rates, the merchant shares the invoice via a unique QR code or payment link. The customer scans the QR code with any UPI app such as Google Pay, PhonePe, or Paytm, authorizes payment, and receives an instant confirmation. The transaction reflects in Khata Billing’s dashboard in real time, updating stock and party balances automatically. For example, a local grocery store sells 2 kg of rice (HSN 1006) at ₹40/kg with 5% GST, 1 kg of dal (HSN 0713) at ₹60/kg with 5% GST, and 10 eggs (HSN 0101) at ₹5 each with 0% GST. The subtotal is ₹130, GST is ₹6.50, bringing the total to ₹136.50. The merchant creates the invoice in Khata Billing, shares the UPI QR code, and the customer pays ₹136.50 via PhonePe. Within seconds, the amount appears in the merchant’s linked bank account, and Khata Billing logs the transaction under the party’s account. This real-time reconciliation eliminates manual entry errors and speeds up cash flow. Merchants can also view payment status on the Khata Billing blog, where step-by-step guides explain QR code generation, UPI troubleshooting, and GST invoice compliance. The free plan covers 10 invoices a day, up to 100 in any 30-day period, making it ideal for small retailers who issue moderate volumes. By embedding UPI directly into invoice creation, Khata Billing removes the need for separate payment collection tools, ensuring that every sale is recorded for GST filing and inventory tracking without extra effort.

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1. A merchant in Delhi records 15 daily invoices for small retail items, each averaging INR 500. On Day 1, Khata Billing’s free plan allows the first 10 invoices to be created with GST details. The merchant uses the Inventory & stock management feature to adjust stock after the 10th invoice, ensuring accurate stock levels.
2. After the 10th invoice, the app displays a notification that the daily 10-invoice limit is reached. The merchant pauses new entries until the next day, preventing a violation of the 10-invoice-per-day rule that the free plan enforces.
3. On Day 2, the merchant creates 5 new invoices, bringing the 30-day total to 15. This stays within the 100-invoice-30-day free plan boundary, so no extra charges apply and GST compliance remains intact.
4. Each invoice shows a clear breakdown of CGST, SGST, and the total amount in INR, which the merchant can verify at the billing counter. The auto-generated barcode on each invoice speeds up checkout and reduces manual entry errors.
5. At the end of the 30th day, the merchant has used all 100 free invoices. The system automatically resets after the 30-day window, allowing another 100 invoices in the next period without any upgrade needed.
6. Because the free plan covers basic inventory tracking, barcode printing on A4 sheets, and thermal printer support, the merchant maintains stock accuracy without paying for additional software, keeping the business operation smooth and GST-ready.

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Khata Billing's free GST invoicing setup begins with downloading the app from Google Play or the App Store, then tapping 'Create Account' to register with your mobile number and verify via OTP. Next, navigate to the 'Settings' tab where you enter your GSTIN, business name, and select your state to activate GST compliance. After saving, go to the 'Invoice' section and choose 'Add New Invoice' to open the free GST invoice generator Free GST invoice generator – this is where you input the customer's name, select items using HSN codes, and let the system auto-calculate CGST, SGST or IGST based on your GST rate. The free plan allows you to generate up to 10 invoices a day and 100 in any 30-day period, covering basic invoice themes and barcode printing. Finally, review the preview, tap 'Save and Send', and the invoice is stored in your cloud dashboard for easy access. To start, open the Khata Billing app, register with your mobile number, verify via OTP, enter your GSTIN and business details in Settings, then create your first invoice by adding customer name, selecting items with HSN codes, and using the auto-calculated CGST, SGST or IGST for your GST rate.

Khata Billing's Free plan supports up to 10 invoices per day and 100 invoices in any 30-day period, while Premium removes all limits on invoicing volume. The Free tier provides basic invoice themes and barcode generation, whereas Premium offers watermark-free, editable, and fully customizable invoice designs that meet GST compliance standards.

GST report access differs significantly: Free users can view basic sales summaries and party balances, but GSTR-1, Profit & Loss, and detailed GST reports are Premium-only features that enable accurate tax filing and better financial decision-making.

Advanced tools are exclusive to Premium, including bulk item import of up to 2000 entries, editable barcode management, real-time multi-device sync, and staff role permissions with activity logs. Free users receive basic inventory tracking and standard reports, while Premium adds Profit & Loss, GSTR-1, Party Ledger, Day Book, and fully customizable barcodes for thermal printing. The Premium plan costs ₹1,499 per year or ₹999 per year with code SAVE500, and includes ad-free operation and priority support. For merchants needing unlimited invoicing, comprehensive GST reporting, and advanced inventory and POS features, upgrading to Premium ensures seamless GST compliance, reduced manual work at the billing counter, and smoother stock room management during sales cycles.

Connecting Khata Billing's POS and inventory tracking creates a seamless workflow for daily sales and stock management. At the billing counter, the merchant scans a product barcode generated through Khata Billing, instantly updating stock levels in the inventory module while creating the invoice. This automatic deduction eliminates manual stock counts, reduces errors in items like 'Rice 10kg' or 'Biscuits 500g', and ensures accurate GST-compliant invoices with CGST, SGST or IGST applied correctly.

For a retailer selling 20 items daily, the free plan's 10-invoice daily limit applies, but each scanned sale synchronizes stock instantly. When stock reaches low levels, Khata Billing's basic inventory management triggers a reminder, helping the shopkeeper reorder before running out. The integration means the same barcode scan used at checkout updates the central stock record, so the stock room reflects real-time availability without separate manual entry.

These features streamline daily operations: sales data feeds directly into party balances, while stock adjustments feed into purchase planning. Merchants avoid duplicate data entry, save time on reconciliation, and maintain accurate records for GST filings. With Khata Billing, the point of sale, inventory, and accounting work as one system, turning manual processes into a coordinated digital workflow for Indian small businesses.

Khata Billing's free invoicing directly supports GST compliance by automatically generating GSTR-1 data from daily sales records, eliminating manual entry errors that cause filing rejections. The system maintains accurate invoice numbering and date stamps required under GST law, ensuring every transaction is audit-ready from the moment it's created. Small merchants using the free plan can record up to 10 invoices daily and 100 within any 30-day period, which aligns perfectly with typical GST filing cycles for micro-businesses. By tagging each invoice with the correct GSTIN and HSN code during creation, Khata Billing ensures tax details flow seamlessly into GSTR-1 returns without additional reconciliation work. This accuracy prevents costly penalties from mismatched tax amounts or missing invoice details that plague manual bookkeeping. For businesses scaling beyond the free plan's 100-invoice monthly limit, upgrading to Premium removes all invoicing restrictions while preserving the same GST-compliant data structure. Accurate digital records also simplify stock valuation and inventory tracking, as every sale automatically updates item quantities and taxable values. With real-time data sync across devices, shopkeepers can verify payment receipts instantly, matching UPI transactions to invoice statuses for transparent accounting. The platform's barcode scanning feature further reduces entry mistakes by eliminating manual item typing, directly supporting input tax credit claims. This level of record-keeping creates a reliable financial trail that banks and auditors trust, enabling merchants to confidently pursue business growth through informed decisions based on verified sales and tax data.