Proforma invoice format: what to include and how it differs from a tax invoice
A sample proforma invoice layout, the details buyers expect, and why a proforma is not a GST invoice.
Last updated 21 October 2026
What is a proforma invoice?
A proforma invoice is a preliminary bill sent before a sale is confirmed, showing the goods or services, quantities, prices, expected taxes and terms. It is not a GST document: it creates no tax liability, gives the buyer no input tax credit and is not reported in GST returns. The tax invoice follows the supply.
What should a proforma invoice include?
No law prescribes the format, because a proforma invoice is a commercial document. Buyers and banks expect it to look like the final invoice, so include:
- The words “Proforma invoice”, clearly, so it cannot be mistaken for a tax invoice.
- Your business name, address and GSTIN, and the buyer’s details.
- A reference number and date, and how long the prices are valid.
- Description, HSN or SAC code, quantity, unit price and value for each item.
- The GST rate and estimated tax, split as it will be on the final invoice.
- Delivery terms, payment terms and bank details if you expect an advance.
Proforma invoice
Seller
[Business name]
[Address, state]
GSTIN: [15-character GSTIN]
Proforma
Proforma no.: [e.g. PI/26-27/0015]
Date: [DD-MM-YYYY]
Valid until: [DD-MM-YYYY]
Buyer
[Name]
[Address]
GSTIN: [if registered]
| Description | HSN/SAC | Qty | Unit price | Value | GST % | Estimated GST |
|---|---|---|---|---|---|---|
| [Item] | [Code] | [50] | [₹] | [₹] | [18] | [₹] |
This is not a tax invoice. A GST tax invoice will be issued on supply.
Payment terms: [e.g. 50% advance] Delivery: [e.g. 15 days from order]
When do businesses use a proforma invoice?
- Collecting an advance. The buyer’s accounts team needs a document to release a payment before delivery.
- Imports and letters of credit. Importers and banks often ask for a proforma invoice to open a letter of credit or apply for a licence.
- Internal approvals. A buyer’s purchase committee approves spending against the proforma.
- Custom or made-to-order work. The proforma fixes specifications and price before production starts.
In each case, the proforma is replaced by a GST tax invoice when the goods are supplied or the service is provided, with its own serial number from your invoice series.
How is a proforma invoice different from a tax invoice?
| Proforma invoice | GST tax invoice | |
|---|---|---|
| Purpose | Confirm terms and price before the sale | Record the supply and the tax charged |
| When issued | Before supply, often before payment | At or before supply (goods) or within 30 days (services) |
| GST liability | None | Yes |
| Input tax credit for buyer | Not available | Available if all conditions are met |
| Reported in GSTR-1 | No | Yes |
| Serial number rules | Your own numbering | Consecutive and unique for the financial year (Rule 46) |
If the buyer pays an advance against a proforma for services, GST is due on that advance and you issue a receipt voucher; for goods, GST on advances does not apply. Ask your CA how this affects your business.
Keep proforma numbering separate from tax invoice numbering so the invoice series stays consecutive. In ERPStack, a proforma is being designed to convert into a sales order and then a tax invoice that keeps the same items and prices; see GST billing software.
This page is general guidance, not tax or legal advice. Checked on 21 October 2026.
Proforma invoices, answered
Is GST charged on a proforma invoice?
No tax becomes payable because of a proforma invoice. It usually shows the GST that will apply so the buyer knows the full cost, but the liability arises on the actual supply or on an advance received for services, and it is the tax invoice (or receipt voucher for an advance) that records it.
Can a buyer claim input tax credit on a proforma invoice?
No. Input tax credit needs a valid tax invoice or debit note that meets the GST rules. A proforma invoice is a commercial document, not a tax document.
What is the difference between a proforma invoice and a quotation?
Both are sent before a sale. A quotation answers a request for prices and may be one of several the buyer compares. A proforma invoice usually comes once the buyer intends to buy, looks like the final invoice, and is often used to arrange payment, an import licence or a letter of credit.
From proforma to tax invoice in one step
ERPStack is being built so an accepted proforma becomes a sales order and then a tax invoice without re-typing. Sign up to follow the build.
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