GST Billing & Expense Tracking for Indian Shops — A Simple System

Two Problems, One System

Most shop owners in India face two parallel challenges: billing customers correctly and tracking expenses for tax. They're usually treated as separate problems requiring separate software. They don't need to be.

When Do You Need to Issue GST Bills?

• Any registered GST dealer: must issue a tax invoice for every supply
• Unregistered dealers: should still issue a bill of supply for their own records
• Composition scheme dealers: issue a bill of supply (no GST charged to customer)

What a Valid GST Invoice Must Include

• Sequential invoice number
• Date of issue
• Customer's name and GSTIN (if registered)
• Description of goods/services
• HSN/SAC code
• Taxable value and GST rate
• Total amount (with and without GST)
• Your GSTIN and signature

The Daily Tracking System for Registered Shops

Morning opening:

• Note opening cash balance
• Check previous day's UPI credits

During the day:

• Issue invoice for each B2B sale; enter cash/UPI receipts for B2C sales
• Log each purchase with supplier GSTIN (for ITC claim)
• Log operating expenses (rent, electricity, phone, labour) as non-GST costs

End of day:

• DhanRakh shows: gross sales, GST collected, purchase cost, net profit
• Once a month: your CA needs GST collected − ITC claimed = net GST payable

Input Tax Credit (ITC) — The Hidden Savings

Most small shops don't claim Input Tax Credit properly. If you buy goods from a registered supplier and pay GST on the purchase, you can deduct that GST from what you owe the government.

Example: You buy stock for ₹1,00,000 + 12% GST = ₹1,12,000. Your customers buy goods for ₹1,40,000 + 12% GST = ₹1,56,800. GST you collect: ₹16,800. GST you paid (ITC): ₹12,000. Net GST you pay: ₹4,800 instead of ₹16,800.

That's a ₹12,000 saving that many small shops miss by not tracking purchases properly.

DhanRakh for Shop GST Tracking

DhanRakh's shop module tracks both sides automatically. Enter purchases with GST amounts and sales with GST collected — the monthly summary tells you exactly what to pay to GSTR-3B.