Key takeaways
What this article covers, in order:
- Why can't you just trust the word "free"?
- Does it actually file your returns?
- Will it protect your input tax credit?
- Will it still fit you in Mar 2027?
- Can you trust it, and can you leave?
- How do you score it?
You signed up for a "free" GST app in April 2026, entered three months of invoices, and on 18 Jul 2026 found out the filing button needs a paid plan. We've heard that story more times than we'd like. The fix is simple: before you commit, check whether the software actually files GSTR-1 and GSTR-3B for free, whether its limits fit your volume, and whether you can walk away with your data. The 15 checks below take about an hour.
Why can't you just trust the word "free"?
Because it means four different things in Indian GST software.
Some apps let you make GST invoices but leave the filing to you. Some prepare the return and hand you a JSON file to upload on the portal yourself. Some give you full filing, but only for a few weeks. And a few give you a free plan that lasts, with limits on volume or users instead of time.
None of these is a scam. They just suit different businesses. A ₹40 lakh trader filing every month needs something quite unlike a freelancer who files a nil GSTR-3B most months. So match the tool to your situation, not to the homepage banner.
Does it actually file your returns?
Start here. If the software fails these five, nothing else matters much.
| # | Check | A good answer looks like |
|---|---|---|
| 1 | Which returns can you file on the free plan? | GSTR-1 and GSTR-3B, named on the pricing page |
| 2 | Does it file, or only export a file? | Files to the GST portal from inside the app, with your OTP/EVC sign-off |
| 3 | Is filing limited by count or by time? | Unlimited monthly or quarterly filings, no expiry |
| 4 | Does GSTR-3B show interest and late fee before you file? | The same figure the portal will charge |
| 5 | Does it handle your return frequency? | Monthly and QRMP (quarterly, with optional IFF) |
Number 2 trips people up. Export-and-upload works, but it's an extra step every month, and mistakes only show up once you're on the portal at 10 pm. Direct filing keeps the checking, the review and the signing in one place.
Number 4 matters if you've ever filed late. You pay 18% a year interest on tax paid late in cash, plus a late fee for each day of delay (less for nil returns, with caps that depend on turnover). It's much better to see the exact amount before you click submit.
Will it protect your input tax credit?
| # | Check | A good answer looks like |
|---|---|---|
| 6 | Is GSTR-2B reconciliation in the free plan? | Purchase bills matched against GSTR-2B, mismatches listed |
| 7 | Does it track ITC you can and can't claim? | Eligible, ineligible and pending credit shown separately |
| 8 | Is purchase bill entry easy? | GSTIN, HSN/SAC and tax split on each bill |
GSTR-2B lands on the portal around the 14th of each month. If your software can't match it, you either claim ITC on faith or spend an evening with VLOOKUP. Honestly, for most small businesses this one feature is worth more than every invoice template put together.
Will it still fit you in Mar 2027?
| # | Check | A good answer looks like |
|---|---|---|
| 9 | What's the transaction or invoice cap? | A clear number you can compare with last year |
| 10 | How many GSTINs? | Enough for every registration you hold |
| 11 | How many users? | You plus your CA, at least |
| 12 | Are basic reports included? | P&L, Balance Sheet, receivables and payables aging |
For check 9, actually count. Sales invoices, purchase bills, expenses, receipts, payments. Last year's GSTR-1 and your bank statement will give you a rough number in ten minutes. If you're anywhere near a cap, assume you'll cross it by Feb 2027. Businesses grow, and hitting a limit mid-year forces you to decide in a hurry.
Can you trust it, and can you leave?
| # | Check | A good answer looks like |
|---|---|---|
| 13 | Is the free plan permanent? | No expiry, no card needed |
| 14 | What does upgrading cost, and what do you get? | A published price and a clear feature list |
| 15 | Can you get your data out? | Reports you can download; your filed returns stay on the portal anyway |
How do you score it?
Give each check 0, 1 or 2. Two if it's clearly written on the vendor's site, one if it's partly true or you had to ask support, zero if it's a no or you simply couldn't find out.
Under 20 out of 30 is a warning. But look harder at which checks got zero. A zero on 1, 2 or 6 usually means you're looking at billing software with GST fields, not filing software. A zero on 9 or 13 means a forced move is probably coming.
Three owners, three different answers
Meena runs a home bakery in Pune. ₹18 lakh turnover, roughly 120 transactions a year, one GSTIN, quarterly filer under QRMP. She cares most about checks 1, 2, 5 and 13. A free plan with a 200-transaction cap suits her fine.
Rahul trades electronics in Surat. ₹1.2 crore turnover, over 2,000 invoices a year, e-way bills on most consignments. He'll fail check 9 on pretty much any free plan, and that's okay. For him, the useful question is check 14: what does the paid tier cost, and does it include e-way bills?
Ayesha is a freelance designer in Bengaluru with ₹25 lakh in billing, mostly services, a few dozen invoices. She once paid ₹1,200 in late fees because she guessed the due date wrong, so check 4 matters to her. Her CA reviews each quarter, so check 11 does too. Two free users, one for her and one for her CA, is exactly right.
(Meena, Rahul and Ayesha are illustrations, not customers.)
What should make you walk away?
If the pricing page doesn't name the returns, be careful. "GST compliance" can mean almost anything, so look for GSTR-1 and GSTR-3B in writing. If there's a countdown anywhere, it's a trial. That's fine if you know it and have budgeted, but don't treat it as free forever. If GSTR-2B isn't mentioned at all, that's a gap, because filing GSTR-3B without reconciling ITC is where a lot of notices begin. And if the limits only appear after you sign up, ask yourself why.
You've picked one. Now what?
Do a dry run before you trust it with a live return. Enter last month's sales and purchases, even though you've already filed. Compare the GSTR-1 and GSTR-3B summaries with what you actually submitted. If they match, file next month from the software, and ask your CA to look over that first return before you hit submit.
That one exercise catches the boring setup mistakes: a wrong state code, an HSN missing from an item, a rate entered as inclusive when it should be exclusive. If you deal with exports, reverse charge or more than one state, have a CA check your setup properly.
How HelloBooks helps
We built HelloBooks Free with this checklist in mind for small businesses. It's ₹0, needs no credit card and doesn't expire. You get unlimited GSTR-1 and GSTR-3B filing for one GSTIN, filed directly to the GST portal from inside HelloBooks, plus GSTR-2B reconciliation with ITC tracking. On GSTR-3B, interest and late fee are shown as the GST portal's own figure before you file. Free includes 2 users, so your CA can work in the same books, and covers up to 200 transactions a year with invoices, bills, quotes, aging reports, P&L, Balance Sheet and Cash Flow.
What Free doesn't do: GSTR-9, e-invoicing, e-way bills, more than one GSTIN, or more than 200 transactions a year. Those sit on Pro at ₹499/month. See pricing, our take on free vs paid GST software, and how GSTR-3B filing works.
FAQs
What's the one check I shouldn't skip?
Whether the free plan files GSTR-1 and GSTR-3B directly to the GST portal, with no time limit. If that's missing, the rest is decoration.
How do I count my transactions?
Add up sales invoices, purchase bills, expenses, and receipts and payments for the last 12 months. Your bank statement plus last year's GSTR-1 gets you close enough.
Is a free trial ever worth it?
Yes, if you've already budgeted for the paid price after it ends. Just don't build your year on it thinking it's free.
Can I switch software in the middle of FY 2026-27?
You can. Filed returns stay on the portal. The work is in moving open invoices, opening balances and ITC records, so a quarter-end is the cleanest moment.
Do I still need a CA?
For routine filing, software handles most of it. For notices, exports, reverse charge or the annual return, a CA is still worth the fee.
Pick the one that passes your checklist, not the one with the loudest banner.
Start free — GST filing included, no card. Try HelloBooks Free
