Key takeaways
What this article covers, in order:
- Is anything ever really free?
- The cap you'll hit in Feb 2027
- The return the free plan doesn't file
- The add-ons
- Your time
- The ITC you don't claim
Nikhil picked a free GST tool in Apr 2026 and felt rather pleased with himself. By Sep 2026 he'd crossed a volume cap, needed e-way bills for a new customer, and was paying a CA to redo two months of ITC matching. Free software is genuinely useful, and we offer some ourselves. But "₹0" on the pricing page isn't the whole bill. The real costs hide in caps, missing returns, paid add-ons, your time and the pain of switching later, and we'll show you where ours are too.
Is anything ever really free?
Software costs money to build and run, so every free plan is paid for somehow. Usually it's a mix of things. Some users upgrade. Some features sit behind a paywall. There may be branding on your invoices. None of that is sinister, as long as it's out in the open. The trouble starts when you only find out after you've built six months of books on the thing.
So let's go through the hidden costs one by one. (Nikhil is an illustration, not a customer.)
The cap you'll hit in Feb 2027
Most free plans limit something: invoices, transactions, turnover, users or GSTINs. The cap itself isn't the problem. Hitting it in the busiest month of your year is.
Say you sell more around Diwali and again near year-end. If your plan counts transactions across the year, you could cross the line in Jan 2027 or Feb 2027, right when you least want to change anything. Now you either upgrade in a hurry or stop recording things properly, and the second option is how books go wrong.
What to do: count last year's invoices, bills and expenses, add 20–30% for growth, and compare that with the cap. If it's close, plan for the paid tier from the start.
The return the free plan doesn't file
Free plans usually cover the routine monthly returns and stop there. Then the annual return comes round. GSTR-9 for FY 2025-26 is due 31 Dec 2026 unless extended, and if your free plan doesn't prepare it, you're paying someone to build it from scratch, or upgrading just for that.
The same goes for e-invoicing once your turnover crosses the threshold, e-way bills when you start moving goods above the limit, and less common returns like GSTR-7, GSTR-8 or ITC-04 if they apply to you. Make a list of every return and document you'll need this year and check each one against the plan.
The add-ons
Some tools are free at the core and charge for the things you actually end up using. More users. A second GSTIN. Data export. Integrations with other software. A higher support tier. Each one is small. Together, they can cost more than a plain paid plan would have.
Ask for the full price list, not just the plan price, and add up what you'd use.
Your time
This is the cost nobody prints. If the free tool makes you export a JSON file and upload it on the portal, that's time every month. If it doesn't reconcile GSTR-2B, you're doing it in Excel. If it has no proper books, you're keeping them somewhere else.
Here's a rough way to put a number on it. Two extra hours a month, valued at ₹500 an hour, is ₹12,000 a year. That's more than many paid plans cost. Your number will be different, but do the sum.
The ITC you don't claim
If your software doesn't match purchases against GSTR-2B, credits slip through. A supplier files late, you don't notice, and you either miss eligible ITC or claim it without proof. Neither is free. One costs you the credit, the other can come back as a demand with interest. Reconciliation isn't a nice-to-have, it's where most of the money in GST software is saved or lost.
Late fees you didn't see coming
Some tools don't show interest and late fee until you're at the payment screen on the portal. If you're filing GSTR-3B late, you'll pay 18% a year interest on tax paid in cash plus a daily late fee (₹50 a day, ₹20 for nil returns, with caps). Confirm current figures on the GST portal. Seeing that number earlier won't make it disappear, but it does stop the surprise, and it's a good nudge to file before the deadline next time.
Branding on your invoices
Some free plans put the vendor's name on your invoices. It's a fair trade for free software, but think about whether it bothers you, or your customers, before you send 500 invoices with it.
The cost of leaving
If you outgrow a free tool or just don't like it, how hard is it to leave? Can you export customers, suppliers, items and reports? Your filed returns stay on the GST portal regardless, but your books (opening balances, open invoices, ITC history) need to move. A tool that makes this hard costs you later, when you can least afford the time.
A checklist to add up the real cost
| Hidden cost | Question to ask | Your rough annual cost |
|---|---|---|
| Volume cap | Will I cross it this year? | Upgrade price × months remaining |
| Missing returns | Who prepares GSTR-9, e-invoices, e-way bills? | CA fee or upgrade |
| Add-ons | Which extras will I actually use? | Sum of add-on prices |
| Time | Hours a month on exports, re-typing, spreadsheets | Hours × your hourly value × 12 |
| ITC leakage | Is GSTR-2B reconciliation included? | Missed credits + risk of demands |
| Late fees | Can I see interest and late fee before filing? | Depends on your filing habits |
| Branding | Do I mind the vendor's badge? | Not money, but worth a thought |
| Switching | Can I export cleanly? | Your time + CA time to migrate |
Fill in the last column honestly. If the total is larger than a paid plan, the "free" tool isn't actually your cheapest option.
So where are HelloBooks Free's hidden costs?
Fair's fair. Here's ours, laid out plainly.
The cap. HelloBooks Free covers up to 200 transactions a year. If you're above that, you'll need Pro at ₹499/month.
Missing returns. Free files GSTR-1 and GSTR-3B. It doesn't include GSTR-9 or 9C, GSTR-7, GSTR-8 or ITC-04, and it doesn't generate e-invoices or e-way bills. Pro generates GSTR-9 ready to file and adds e-invoicing and e-way bills.
Users and GSTINs. Free is 2 users and one GSTIN. A third user or a second GSTIN means Pro, which covers unlimited users and roles and every GSTIN of one legal entity. Several legal entities need Business at ₹1,999/month.
Export and Tally. Excel export and Tally sync are on Pro, not Free.
Branding. Invoices on Free carry a "Powered by HelloBooks" badge.
AI credits. Free comes with AI credits to get you started on AI categorisation. When they run out, AI categorisation pauses. Your books and GST filing keep working, and filing never uses AI credits.
What you don't pay for on Free: GSTR-1 and GSTR-3B filing directly to the GST portal from inside HelloBooks, unlimited for one GSTIN; GSTR-2B reconciliation with ITC tracking; interest and late fee shown as the GST portal's own figure; invoices, bills, quotes and core reports; the mobile app for books and invoicing; email support. No card, no expiry.
How HelloBooks helps
We'd rather you pick HelloBooks Free knowing exactly where its edges are than be surprised in Feb 2027. Use the table above with our numbers plugged in, and if Free fits your year, it stays free. If it doesn't, Pro's price is published so you can plan for it. If your situation involves exports, several states or anything unusual, have your CA look at it before you decide. See pricing, free vs paid GST software and e-invoicing.
FAQs
Is free GST software worth using at all?
Yes, for many small businesses. If your volume fits the limits and the plan files the returns you need, free software can do the job well. Just add up the hidden costs first.
What's the biggest hidden cost for most small businesses?
Usually time and missed ITC. A tool that doesn't reconcile GSTR-2B or file directly ends up costing hours every month.
Will HelloBooks Free ever expire?
No. HelloBooks Free is ₹0 with no card and no expiry.
Does HelloBooks charge AI credits for filing?
No. GST filing never uses AI credits. If your credits run out, only AI categorisation pauses.
When should I just pay from day one?
If you already know you need e-invoicing, e-way bills, GSTR-9, several users or more than one GSTIN, start on a paid plan and save yourself a mid-year switch.
Free is a great price, as long as you know what it doesn't include.
Start free — GST filing included, no card. Try HelloBooks Free
