Need a printable proforma format?
Use our GST Invoice Generator to prepare professional proforma invoices, quotations, or draft summaries in seconds.
What is a proforma invoice?
A proforma invoice is a preliminary, invoice-style document sent by a seller to a buyer before the actual supply or shipment. It serves as a formal offer that outlines the estimated value, quantity, and description of goods/services. It is most commonly used for initiating advance payments, obtaining internal budget approvals, or for customs valuation in imports/exports.
Proforma Invoice vs GST Tax Invoice
| Comparison Point | Proforma Invoice | GST Tax Invoice |
|---|---|---|
| Main Purpose | Preliminary offer / Advance request | Final demand / Tax compliance |
| Timing | Before supply or payment | At/after supply as per GST rules |
| ITC Claim Eligibility | No — ITC not allowed | Yes — if issued correctly |
| GST Liability | None to the government | Mandatory tax to be paid to govt |
| Return Filing | Not included in GSTR-1 | Mandatory reporting in GSTR-1 |
Proforma vs Quotation
Quotation
- Initial price offer or commercial bid.
- Earlier stage in the sales funnel.
- Usually less invoice-style detail (no bank details often).
Proforma Invoice
- Formalized version of a confirmed offer.
- Used to initiate advance payment or order confirmation.
- Contains full invoice-style breakdown and bank details.
Proforma format fields checklist
Sample proforma invoice reference
| Item / Service | HSN/SAC | Qty | Taxable Val | GST % | GST Amt | Total |
|---|---|---|---|---|---|---|
Industrial Valve (Goods) Same-state Proforma | 8481xx | 20 Units | ₹40,000 | 18% | ₹7,200 | ₹47,200 |
Content Writing (Service) Service Proforma | 9983xx | 1 Project | ₹15,000 | 18% | ₹2,700 | ₹17,700 |
Server Hardware (Inter-state) IGST Proforma | 8471xx | 1 Set | ₹2,00,000 | 18% | ₹36,000 | ₹2,36,000 |
GST in proforma invoice
Showing GST in a proforma invoice provides pricing transparency. It helps the buyer confirm their ITC eligibility (even though they can't claim it yet) and helps the seller request the full inclusive amount.
HSN/SAC in proforma invoice
Including HSN (for goods) or SAC (for services) ensures the buyer accepts the tax classification before you issue the final document. This significantly reduces disputes and "incorrect tax slab" rejections later.
Payment and bank details
Since proforma invoices are often used to request payments, they must contain clear and verifiable bank or UPI information.
Convert proforma to final invoice
Professional businesses use the proforma stage to iron out errors. Once payment or confirmation is received, the data is converted to the final tax document.
Common proforma mistakes
Frequently asked questions
Is proforma invoice valid under GST?
A proforma invoice is a commercial/preliminary document and is not treated like a GST tax invoice for return filing or ITC claims. It is used for price discovery, advance payment requests, and order approval.
Can ITC be claimed on a proforma invoice?
No. Input Tax Credit (ITC) can only be claimed based on a valid GST Tax Invoice issued as per Rule 46. A proforma invoice is a draft document and does not support ITC claims.
Is a proforma invoice the same as a tax invoice?
No. A proforma invoice is issued before supply/shipment (often for advance payment), while a Tax Invoice is issued at the time of supply and creates a formal tax liability.
Is a proforma invoice the same as a quotation?
A quotation is a price offer. A proforma invoice is a more formal, invoice-style document often used to initiate payment or order approval, though neither is a final tax document.
Should GST be shown on a proforma invoice?
Yes, showing the estimated GST rate and amount helps the buyer understand the total payment required and their eventual ITC benefit once the final invoice is issued.
Can I ask for advance payment using a proforma invoice?
Yes, this is one of the primary uses of a proforma invoice. It provides the buyer with payment details and a breakdown of the transaction before final billing.
Can a proforma invoice be converted to a tax invoice?
Yes. Once the payment is received or the order is executed, the details from the proforma are transferred to a formal GST Tax Invoice to comply with GST rules.
Is HSN/SAC required on a proforma invoice?
While not legally mandatory by law, it is best practice to include HSN/SAC to ensure the correct GST rate is estimated and to avoid disputes during final billing.
Can proforma invoices be used for exports/imports?
Yes, they are frequently used in international trade to provide customs and buyers with an estimate of value, quantity, and description before shipment.
Need a draft proforma?
Prepare printable proforma summaries and invoice drafts in under 60 seconds with our compliant format helper.
Sources & Methodology
Proforma invoice is a commercial document. While final GST tax invoices are strictly governed under Rule 46 of the CGST Rules, preliminary documents serve business and pre-payment needs. Always verify invoicing rules via theGST Portaland CBIC.
Review our Accuracy Policy,Disclaimer,GST Invoice Guide, and GST Quotation Guidebefore finalizing business documents.
Next steps for order management
Draft proforma invoices, back-calculate GST, or find the correct HSN/SAC code.
Create printable GST quotations, proforma invoices and draft invoice summaries.
Remove GST from an inclusive amount and find taxable value.
Search HSN codes with chapter structure & notes.
Validate GSTIN format and basic checks instantly.
Find POS rules to decide IGST vs CGST/SGST.
Generate a printable GST rate card for shops.