Proforma invoice format
A proforma invoice is a draft bill you send before the sale, so the buyer knows exactly what they will be charged and can pay an advance, raise a purchase order or apply for an import licence. This page has a proforma invoice with HSN codes, estimated tax and terms of sale, and a simpler quotation for earlier in the deal.
Templates
- Proforma invoice (document): A proforma invoice to send before a sale, for advance payment, import paperwork or a buyer's approval, with item details, HSN codes, estimated tax, validity, delivery and payment terms.
- Quotation (document): A price quotation or estimate for customers, with a quote number, scope of work, itemised prices, tax, validity, payment and delivery terms and a signature block to accept it.
- GST invoice (document): A GST tax invoice format for Indian businesses with GSTIN, place of supply, HSN/SAC codes, taxable value, CGST, SGST or IGST and the total in words.
How to use these templates
- Open the proforma invoice and enter your business details, tax ID and, if you export, your IEC.
- Tell the AI the buyer, the items with HSN or SAC codes, quantities and prices, and the delivery terms, such as "FOB Mumbai, 30% advance, balance before dispatch".
- Set a validity date. Prices, exchange rates and stock change, so a proforma should say how long it holds.
- Download as PDF and send it. When the goods ship or the work is done, issue the final tax invoice with the same figures.
Using a proforma invoice correctly
- Title it clearly as "Proforma invoice" and give it its own number series, such as PI/2026-27/018, separate from your tax invoices.
- A proforma is not a tax invoice. Under GST, input tax credit is claimed on the tax invoice, so buyers cannot use a proforma for that.
- Match the proforma to the final invoice as closely as you can. Importers and banks compare them, and differences can hold up customs clearance or a letter of credit.
- For export orders, state the Incoterm, port, country of origin, packing and shipping method. Buyers often need these to arrange insurance and import permits.
- When an advance is paid against a proforma, your accountant may need you to issue a receipt voucher or record the advance for tax. Check the rules for your business.
Frequently asked questions
What is the difference between a proforma invoice and a quotation?
A quotation is an offer of prices that the customer may compare with others. A proforma invoice comes once the buyer intends to order, and looks like the final invoice with all the details filled in, but is clearly marked as a proforma rather than the final bill.
Is a proforma invoice legally binding?
It is usually treated as a good-faith estimate, not a binding contract. The sale is settled by the purchase order, contract or final invoice, so put any firm commitments there.
Do I charge GST on a proforma invoice?
You show the estimated GST so the buyer knows the full amount, but the tax is charged on the tax invoice you issue when the supply is made. Ask your accountant how to treat advances.
Can I use a proforma invoice for customs?
Customs authorities often accept a proforma for samples, free goods or to estimate duty, but a commercial invoice is normally required for the actual shipment.