Overview
What is a Proforma Invoice?
A proforma invoice is a pre-sale document — a formal quotation or estimate — sent to a prospective buyer before the supply takes place. It looks like a tax invoice and shows the expected line items, taxes and total, but it is not a tax document.
Because no supply has happened, a proforma invoice does not create any GST liability and must not be reported in GSTR-1 or GSTR-3B. It cannot be used by the buyer to claim Input Tax Credit. To make this clear, every proforma must carry the words "PROFORMA INVOICE" and a non-tax declaration.
Proformas typically carry a "valid until" date and are used in export deals (for advance bank remittances or LC opening), capital-goods quotes, custom orders, and any B2B negotiation where the buyer needs a formal document to release a PO or budget.
Use Cases
When to issue a Proforma Invoice
- You are sending a formal quote before the buyer commits to purchase.
- The buyer needs a document to open a Letter of Credit or get an advance remittance.
- You want to lock in pricing for a defined window (the validity date).
- Cross-border negotiations where customs needs an estimated value.
- Anywhere a 'quote' or 'estimate' is expected but in invoice format.
Fields
Key fields on a Proforma Invoice
"PROFORMA INVOICE" heading
Mandatory — distinguishes the document from a tax invoice.
Proforma number
Your own running series; we default to a PRO- prefix.
Date of issue
When the quote was generated.
Valid until
Pricing validity expiry — pricing may revise after this date.
Buyer details
GSTIN optional at this stage; can be added when converting to tax invoice.
Line items with estimated GST
Rates shown are indicative — actual tax is locked at supply.
Non-tax declaration
"NOT A TAX INVOICE — this is a proforma estimate only" is printed automatically.
How it works
Generate in 3 simple steps
Fill in details
Add your business info, buyer details, items, and a valid-until date.
Preview live
See the proforma render in real time — GST is shown as indicative.
Download or convert
Download PDF to email the buyer. Convert it into a tax invoice once they confirm.
FAQ
Frequently asked questions
Everything you need to know about proforma invoice generation.
Is a proforma invoice the same as a quotation?+
Practically yes — but a proforma is formatted like an invoice (line items, taxes, totals) while a quotation can be plain text. Buyers and banks often specifically ask for a proforma when they need an invoice-style document pre-sale.
Does GST apply on a proforma invoice?+
No. GST applies only at the time of supply. A proforma shows GST as an estimate so the buyer can budget — but you do not owe any tax on it and you must not file it in GSTR-1.
Can a buyer claim ITC on a proforma invoice?+
No. Input Tax Credit can only be claimed on a valid tax invoice, debit note, or other prescribed document. A proforma is not a tax document.
Do I need to maintain proforma numbering separately?+
Yes — it is good practice to keep a separate proforma series (PRO-) so it never gets confused with your tax invoice series (INV-). Our builder does this by default.
How long should a proforma be valid?+
Typically 7 to 30 days. Set whatever you can honor — after the validity date you can issue a fresh proforma with revised pricing.
Can a proforma be converted into a tax invoice?+
Yes. Once the buyer accepts, you issue a fresh tax invoice (with a tax-invoice number from your INV series). Our builder has a one-click convert flow.
Free to use
Generate your Proforma Invoice now
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