Billing Software for Garment Shop — Complete Guide (2026)
By Khata Billing Team
Running a garment shop comes with billing challenges that generic software often misses: apparel has two GST slabs (5% and 12%) depending on the price, products come in multiple sizes and colours, seasonal stock needs careful management, and regular customers expect credit facilities.
This guide walks garment and clothing retailers through everything billing software must handle — and why Khata Billing is the right choice for your shop.
Key Points
Auto 5% or 12% GST based on garment price
Product catalogue with size and colour variants
Stock tracking per SKU — never run out unknowingly
Customer credit (udhari) ledger with WhatsApp reminders
Fast counter billing — bill in 30 seconds
PDF invoices with your shop logo and branding
Seasonal purchase entries to add new stock
Works on mobile, tablet, and PC
GST on Garments — What Every Shop Owner Must Know
Apparel GST in India has two slabs:
5% GST: Garments with sale value up to ₹1,000 per piece. HSN code: 6101–6117 range depending on type.
12% GST: Garments with sale value above ₹1,000 per piece.
In Khata Billing, you can set the correct GST rate for each product in your catalogue. When you bill, the correct slab is applied automatically — no manual calculation, no errors, no risk of ITC rejection.
Managing Garment Shop Inventory in Khata Billing
Garment inventory is complex — a single shirt style might come in 5 sizes and 3 colours, making it 15 separate SKUs. Here's how to manage this in Khata Billing:
Create each size-colour combination as a separate product (e.g., "Blue Shirt - M", "Blue Shirt - L")
Set opening stock for each SKU
Stock reduces automatically when each item is billed
Set low-stock alerts for fast-moving sizes
When new season stock arrives, record a purchase entry to add quantities
Customer Credit Management for Garment Shops
Regular customers — especially wholesale buyers and loyal retail customers — often purchase on credit. Khata Billing's customer ledger handles this:
Record credit sales against the customer account
Track partial payments and remaining balance
Send outstanding statement on WhatsApp — customers pay faster when they see the exact amount
Set credit limits per customer to avoid over-extending
Add products: for each item, create entries per size/colour variant with correct GST rate (5% or 12%) and opening stock
Add regular customers with their credit terms
Start billing at the counter — stock reduces automatically
A garment shop running Khata Billing bills faster, keeps accurate stock, applies correct GST rates automatically, and tracks customer credit without a separate notebook. All of this is free.
What billing software is best for a garment shop in India?
Khata Billing is well-suited for garment shops — it supports product variants, correct GST rates for apparel (5% or 12%), inventory tracking by item, and customer credit accounts. Free plan covers all core needs.
What is the GST rate for clothing and garments in India?
Garments priced up to ₹1,000 per piece attract 5% GST. Garments priced above ₹1,000 per piece attract 12% GST. Khata Billing can store the correct rate per product so it is applied automatically on every invoice.
How can billing software help manage garment shop inventory?
Khata Billing reduces stock count automatically with every sale. You can track how many pieces of each item are left, set low-stock alerts for fast-moving products, and add new stock via purchase entries.
Can I track customer credit (udhari) in garment shop billing software?
Yes. Khata Billing maintains a running ledger for every customer — all credit sales, payments, and outstanding balance — with WhatsApp statement sharing for easy collection follow-up.
