Top Free Accounting Software Options for India GST

Looking for genuinely free accounting software in India? The best free options in 2026 are Zoho Books (Free Edition) for businesses under ₹25 lakh turnover, Vyapar for shopkeepers and traders, Refrens for GST invoicing and compliance, and ProfitBooks for freelancers. Businesses with a GSTIN and turnover under ₹1.5 crore can also download GSTN-empanelled software free from the official GST portal. This guide compares each option, its real free-plan limits, and its GST features so you can pick the right one.

Free Accounting Software in India: Quick Comparison (2026)

What Is Free Accounting Software?

Free accounting software lets you record transactions, raise GST invoices, and track finances at no cost, usually through a free plan or an open-source licence. Most of today’s options are cloud accounting software, meaning you access them online through a subscription instead of installing them on one computer. Because the vendor handles maintenance, backups, and upgrades, you simply log in and work from any device.

In India, “free” comes in three forms: a genuine free plan (like Zoho Books or ProfitBooks), a free mobile app with paid upgrades (like Vyapar or myBillBook), and the government’s GSTN-empanelled software, which is free for eligible small businesses. Understanding which type you’re choosing matters, because the limits differ sharply.

GSTN Free Accounting Software: Who Is Eligible

The GSTN (Goods and Services Tax Network) offers free accounting and billing software to MSMEs through a panel of empanelled vendors. This scheme is free for businesses that hold a valid GSTIN and have an annual turnover under ₹1.5 crore, and it is limited to a single user.

Eligible features typically include sale, purchase, and cash ledgers, inventory management, customer and supplier masters, invoice generation, and GST return preparation. To get it, log in to the GST portal, go to Downloads → Accounting and Billing Software, and pick a vendor from the live empanelled list. Past options have included GenieBooks and UdyogBooks, but the vendor list changes, so always check the current list on the portal.

6 Best Free Accounting Software Options for Indian Businesses

1. Zoho Books (Free Edition) — Best Overall

Zoho Books offers a genuine free edition for businesses with annual turnover under ₹25 lakh, and it is not a time-limited trial. The free plan covers one user plus one accountant, up to 1,000 invoices a year, GST-compliant invoicing, delivery challans, e-way bills, and basic reports.

Because Zoho is a registered GST Suvidha Provider (GSP), you can file GSTR-1 and GSTR-3B directly from the software, and generate e-invoices with IRN and QR codes once your turnover crosses the e-invoicing threshold (currently ₹5 crore). The main free-plan limits are the absence of automatic bank feeds and the single-user cap. For a growing business that wants real cloud accounting at no cost, Zoho Books is the strongest all-round choice.

2. Vyapar — Best for Shopkeepers and Traders

Vyapar is a mobile-first GST billing and accounting app built specifically for Indian small businesses. Its free mobile app lets you create GST invoices, track payments, manage inventory, and generate basic reports, and it works offline so billing continues even without an internet connection.

The free tier is the mobile app; the desktop (Windows) version is a paid product with a free trial. For a shop, retailer, or trader who bills mostly from a phone and wants fast, offline GST invoicing, Vyapar is one of the most practical free options available.

3. Refrens — Best for GST Invoicing and Compliance

Refrens gives service businesses more compliance depth than most free tools. Its free plan includes up to 15 business documents per year — invoices, quotations, purchase orders, credit and debit notes, delivery challans, and expenses — with GST invoices, e-invoices (auto IRN and QR generation), and e-way bills. It even includes GSTR-1, GSTR-3B, and GSTR-2B reconciliation reports on the free tier, plus two team members and automated payment reminders.

The catch is the document cap: any business issuing more than a handful of invoices a month will hit the 15-document ceiling quickly and need to upgrade. For low-volume freelancers and consultants who value compliance features, though, Refrens is excellent.

4. ProfitBooks — Best for Freelancers and Very Small Businesses

ProfitBooks offers a free Startup plan with no time limit. It supports one user, up to 10 invoices per month, up to 50 customers, and up to 25 vouchers a month, along with basic financial reports. You can create invoices, track expenses, and manage inventory without any prior accounting knowledge, and share data easily with your accountant.

The tight invoice and user limits make it best suited to freelancers and very small businesses with light needs, with a clear upgrade path as you grow.

5. myBillBook — Best Mobile Billing App

myBillBook is a popular mobile-first billing app for Indian small businesses. Creating an account is free, and you can raise GST and non-GST invoices, share bills online, track payments, and manage inventory. It’s genuinely handy for daily shop billing.

Be aware of one important limit: GST return reports such as GSTR-1 and GSTR-3B, and adding staff members, fall under the paid plans (which start at around ₹349/month), and premium features come with a 14-day trial. Use myBillBook free for billing, but plan to pay if you need in-app GST return filing.

6. Odoo (Community Edition) — Best Open-Source Option

Odoo is well known for its open-source ERP and business apps. The Community edition is free and open-source, and you can self-host it to run accounting, invoicing, and inventory. It’s AI-assisted for tasks like invoice OCR and reconciliation, and scales as you add modules.

Because Community edition is self-hosted, it suits businesses with some technical resources rather than a non-technical solo owner. If you want a free, customisable, self-managed system, Odoo is the strongest open-source pick. (For more, see our guide to open-source accounting software.)

Is Tally Free for Small Business?

Not for real business use. TallyPrime’s Educational mode is free, but it watermarks printed documents, lets you work on only one company at a time, and using it for actual business violates Tally’s terms of use. It’s meant for learning and evaluation only.

To run real operations, you need a paid licence: TallyPrime Silver (single user) costs ₹18,000 plus GST, and Gold (multi-user) costs ₹54,000 plus GST. So if you specifically need a free tool, Zoho Books, Vyapar, or Refrens are better starting points than Tally.

Advantages and Disadvantages of Free Accounting Software

Advantages

• Access your finances anytime, anywhere from any device with an internet connection.
• No upfront cost, which is ideal when you’re starting out or testing a workflow.
• Automatic backups and upgrades handled by the vendor, so there’s nothing to maintain.
• GST-ready invoicing and reports in most tools, keeping you compliant from day one.
• Dashboards, KPIs, and reports that make it easy to see how your money moves.
• A clear upgrade path — you keep your data when you move to a paid plan.

Disadvantages

• Hard limits on invoices, users, or documents (for example, ProfitBooks caps you at 10 invoices a month, Refrens at 15 documents a year).
• Advanced features — payroll, multi-branch, automation, bank feeds — are usually paid.
• In some tools (like myBillBook), GST return filing itself sits behind a paid plan.
• Little or no customisation; you use the software largely as it comes.
• Free plans suit early-stage businesses; growing invoice volumes will eventually require an upgrade.

How to Choose the Right Free Accounting Software

Start with your invoice volume and how you work. If you bill mostly from a phone in a shop, choose Vyapar or myBillBook. If you want full cloud accounting with direct GST filing, choose Zoho Books. If you’re a low-volume freelancer who needs proper GST documents, choose Refrens or ProfitBooks. If you have technical resources and want to self-host, choose Odoo. And if you hold a GSTIN under ₹1.5 crore turnover, check the GSTN portal for a free empanelled option.

As your business grows, you can move up to a full paid accounting software, a cloud accounting platform, or, if you work with a chartered accountant, dedicated accounting software for CA firms. You can also speed up day-to-day compliance with our free GST invoice generator and GST calculator.

Frequently Asked Questions (FAQs)

Which is the best free accounting software in India?

For most small businesses, Zoho Books (Free Edition) is the best overall free accounting software, as it’s genuinely free for turnover under ₹25 lakh and files GST returns directly. Vyapar is best for shopkeepers, Refrens for GST invoicing, and ProfitBooks for freelancers.

Is Zoho Books really free?

Yes. Zoho Books has a permanent Free Edition — not a trial — for businesses with annual turnover under ₹25 lakh. It includes one user plus one accountant, up to 1,000 invoices a year, GST invoicing, e-way bills, and direct GSTR-1 and GSTR-3B filing.

Is Vyapar free?

Vyapar’s mobile app (Android and iOS) is free for GST billing, invoicing, and inventory, and it works offline. The Windows desktop version is a paid product with a free trial.

Is Tally free for small business?

No. Only TallyPrime’s Educational mode is free, and it is watermarked and restricted to learning, not real business use. Business use requires a paid licence — Silver at ₹18,000 plus GST or Gold at ₹54,000 plus GST.

Which free software can file GST returns directly?

Zoho Books, as a registered GST Suvidha Provider, lets you file GSTR-1 and GSTR-3B directly. Refrens generates GSTR-1, GSTR-3B, and GSTR-2B reports on its free plan, while some tools like myBillBook keep GST return features on paid plans.

Who is eligible for GSTN free accounting software?

Businesses with a valid GSTIN and annual turnover under ₹1.5 crore are eligible, for a single user. You can download it from the official GST portal under Downloads → Accounting and Billing Software.

Can I use free accounting software without a GST number?

Yes. Zoho Books’ free edition works for both GST-registered and unregistered businesses under ₹25 lakh turnover, and tools like ProfitBooks and myBillBook can be used without GST registration — ideal for freelancers, startups, and small shops.

What are the limitations of free accounting software in India?

Free plans usually cap invoices, users, or documents, and keep advanced features (payroll, multi-branch, automation, bank feeds) behind paid tiers. Some tools also charge for GST return filing. They’re best for early-stage businesses, with an upgrade path as you grow.

Conclusion

Free accounting software has come a long way in India. A solo entrepreneur or small shop can now run GST-compliant billing, inventory, and reporting without spending anything, using tools like Zoho Books, Vyapar, Refrens, or ProfitBooks, or a GSTN-empanelled option from the GST portal. Match the tool to how you actually work — mobile billing, full cloud accounting, or low-volume invoicing — and upgrade only when your volumes demand it. The goal is simple: get clear, daily visibility into your finances so you can make faster, better business decisions. Explore any of the accounting systems above and start free today.

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