Overview

GNUKhata is free, open-source accounting and inventory software built for Indian SMEs, traders, startups, and NGOs. It suits organizations that want bookkeeping, stock control, and selected GST reporting without a software charge. Its broad transaction coverage is balanced by gaps in advanced GST workflows and a security caveat that favors private deployment.

Key features

Transactions and accounting

Sales and purchase invoices, point-of-sale entries, delivery notes, debit and credit notes, payments, and receipts cover a substantial share of routine business transactions. A customizable chart of accounts, journal and contra vouchers, and year-end closing and rollover provide the core structure for maintaining books. Multi-entity support and an audit trail can help organizations keep activity organized across entities and trace recorded transactions.

Inventory and reporting

Stock tracking across multiple godowns is useful for traders or businesses holding inventory in more than one location. Product and service records, tax details, and HSN search support the associated records, while Profit & Loss, Balance Sheet, and stock-summary reports connect financial and inventory activity. The absence of multi-currency support makes GNUKhata a poor fit for books that need to track transactions in multiple currencies.

GST and roles

GNUKhata generates GSTR-1 reports and exports them as JSON for upload to the GST portal. That covers a defined reporting task, not a full set of GST workflows: it does not support online e-way billing or e-invoicing, GST-2A/GSTR-2B reconciliation, or several other advanced GST features. Its roles—Admin, Manager, Operator, Internal Auditor, and Godown In charge—allow access to be divided among different responsibilities.

Security and deployment

The project says SQL injection issues have been fixed, but its code has not undergone a security audit and it recommends use in a private environment. That makes deployment context important: organizations requiring an audited application or a public-facing setup should look elsewhere. Version 8.0 is distributed as Docker images; Windows installation is possible but not well tested, so Windows users should be prepared for uncertainty around setup.

Pricing

GNUKhata — 0.00 USD per free. The free and open-source plan includes the software, with current v8.0 supporting Docker installation. There are no paid tiers to weigh against the free plan; the main trade-offs are operational, including the Docker-based distribution and the product's functional and security limits.

Platforms

GNUKhata supports Linux, web, Windows, and self-hosted use. Its current Docker distribution and the project's caution about Windows installation are practical considerations for teams choosing where and how to run it.

Who it's for

GNUKhata is best suited to Indian small businesses, traders, startups, and NGOs that need conventional accounting, inventory across multiple godowns, and GSTR-1 export without a software fee. It is less suitable for organizations dependent on advanced GST processing, multi-currency books, audited security, or a well-tested Windows installation.

Pros and cons

Pros: Free and open source, with sales, purchase, accounting, and year-end workflows in one product.
Pros: Multi-godown stock tracking, core financial reports, and GSTR-1 JSON export address useful needs for Indian trading businesses.
Pros: Multiple user roles, multi-entity support, and an audit trail support organizational access and transaction traceability.
Cons: No online e-way billing, e-invoicing, or GST-2A/GSTR-2B reconciliation limits its use for businesses needing advanced GST processes.
Cons: No security audit and the recommendation to use it in a private environment are material cautions for deployment.
Cons: No multi-currency support, and Windows installation is not well tested.

General support is offered through Telegram, Matrix, and a mailing list.

Alternatives

Consider BUSY if you want a free billing and accounting plan with multiple companies, multiple financial years, invoices, and receipts; it also offers a free trial. Beancount is another free, open-source bookkeeping option, with Linux, macOS, Windows, web, API, and self-hosted platforms. Choose Frappe Books if you want free, open-source software installable on your own Frappe site, with support for mobile and desktop platforms as well as web.

FrontAccounting is free accounting software released under the GNU General Public License. hledger is free software with no purchase price or monthly fees. GnuCash is free desktop accounting for personal and small-business use. Infor Public Sector uses paid pricing; contact Infor for details. Adagio Accounting offers Adagio for Accountants at 100.00 USD per month, with one admin and one general user license.

For broader browsing, see General Ledger Software and Bookkeeping Software.

Verdict

Choose GNUKhata if you are an Indian SME, trader, startup, or NGO seeking free accounting and inventory software with GSTR-1 export and multi-godown stock tracking. Its core breadth and zero software cost are compelling, but businesses needing advanced GST functions, multi-currency accounting, or an audited security posture should choose another fit.

	Fortnox	GNUKhata
Free plan		Yes
Paid from		Free
Platforms	Android, iOS	Linux, self-hosted, Web, Windows
Free plan	No	Yes
Bank feeds	Yes
Automated reconciliation	Yes
Invoice creation	Yes
Receipt capture	Yes
Inventory tracking	Yes
Accountant access	Yes
Mobile platforms	ios and android
Multi-currency		No
Multi-entity support		Yes
Audit trail		Yes

Fortnox vs GNUKhata

Fortnox

GNUKhata