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Proforma invoice: format, meaning, GST rules and a free template

A proforma invoice is a seller's advance bill. Under GST it is not a tax invoice, so issuing one creates no tax liability and the buyer cannot claim input tax credit on it.

By , co-founder of Autobot 7 min read

What is a proforma invoice?

A proforma invoice (PI) is the bill a seller sends before the sale is final, laid out like the invoice that will follow. The buyer uses it to approve the purchase, pay an advance, open a letter of credit or complete import paperwork.

A CBIC flyer lists the proforma as one type of invoice [3]. It is also spelt "pro forma" or, wrongly, "performa". In Hindi it is प्रोफ़ॉर्मा इनवॉइस, an advance bill (अग्रिम बिल).

When do Indian businesses use a proforma invoice?

Use a proforma when the buyer needs a firm, itemised price before you deliver: a quote to approve, an advance before dispatch, an export order, a letter of credit (LC) or import paperwork abroad.

Situation Why it helps Make sure it shows
Quote to approve The buyer raises a purchase order against it Rates, GST, validity
Advance payment The buyer's accounts team pays against it Advance, bank and UPI details
Export order HDFC Bank asks for one when an export advance arrives [12] Currency, Incoterm, port, HS code
Letter of credit The buyer's bank opens the LC from it. Karur Vysya Bank wants it, or a contract, signed by both sides [13] Supplier's bank, HS code, tenor, Incoterm
Import paperwork abroad A Nigerian bank processes the importer's Form M against a signed proforma valid for up to 90 days [14] Signature, validity

Importing? Your bank will want the supplier's proforma or contract before an import LC or advance payment [12][13]. For government buyers, see GeM registration and tenders.

Proforma invoice vs tax invoice vs quotation: what is the difference?

A quotation offers prices, and a proforma invoice states the exact bill the buyer will get if they go ahead. A tax invoice records the actual sale under GST. Only the tax invoice follows rule 46, goes into GSTR-1 and supports the buyer's input tax credit.

Quotation Proforma invoice Tax invoice
When Early Before supply Goods: at or before removal. Services: within 30 days of supply [1][2]
Contents set by law No No Yes, rule 46 [2]
Numbering Your own Own series Consecutive, up to 16 characters, unique per financial year [2]
GST Optional Estimate Charged
Buyer's input tax credit No No Yes, if section 16 is met [1]
In GSTR-1 No No Yes [3]
E-invoice (IRN) No No Above ₹5 crore turnover [8]

A purchase invoice is the supplier's tax invoice in the buyer's books (see vendor invoice management). A commercial invoice is the final customs invoice; with the packing list, it is a mandatory export document [10].

Is GST charged on a proforma invoice?

Show GST on a proforma so the buyer sees the full amount, but issuing it creates no liability. Tax falls due at the time of supply. For goods, an advance attracts no GST until the tax invoice (Notification 66/2017-CT). For services, GST is due when the advance arrives (section 13(2)) [1][4][5].

  • Any advance needs a receipt voucher (section 31(3)(d), rule 50). If the rate is unknown, use 18%; if it is unclear whether the supply is inter-state, treat it as inter-state [1][2].
  • No supply after all? Issue a refund voucher (section 31(3)(e)) [1].
  • Composition taxpayers cannot collect tax (section 10(4)), so their proforma shows no GST, and the goods-advance relief does not cover them [1][4].

What should a proforma invoice include?

Copy the tax invoice particulars from rule 46 so the proforma converts cleanly later, then add a clear title, a validity date, payment terms and bank details. An export proforma also needs the Incoterm, ports, currency, HS codes and packing details, and shows no GST.

Field Domestic Export
"Proforma invoice" title, "This is not a tax invoice" Yes Yes
Seller name, address, GSTIN Yes Plus IEC, which is your PAN [10]
Buyer name, address, GSTIN; delivery address Yes Buyer, consignee, country
Place of supply (state and code) Yes Final destination
PI number (own series), date, validity Yes Yes
Description, quantity, unit, rate, discount Yes In the agreed currency
HSN or SAC 4 digits up to ₹5 crore turnover, 6 above [7] 8-digit ITC(HS) [10]
CGST and SGST, or IGST Yes None, as exports are zero-rated [5]
Total in figures and words Yes Yes
Incoterm and named place, ports, origin, packing No Yes [11]
Payment terms, bank details IFSC, UPI ID SWIFT code
Signature Yes Plus the buyer's acceptance

Micro or small supplier quoting credit? See the MSME 45 days payment rule and MSME interest calculator.

What is the proforma invoice format?

There is no official format [3]. Lay it out like a tax invoice, top to bottom: seller and buyer, PI number and validity, an item table, GST and total, then terms, bank details and signature. Both samples below use made-up names, GSTINs and numbers.

Sample 1: GST sale inside Karnataka (CGST and SGST)

PI/26-27/0142, 18 Oct 2026, valid till 25 Oct 2026. Seller: Kaveri Build Supplies, Bengaluru, GSTIN 29ABCDE1234F1Z5. Buyer: Chamundi Homes Pvt Ltd, Mysuru, GSTIN 29PQRDE5678K1Z2, delivery at its Mysuru site. Place of supply: Karnataka (29).

# Description HSN Qty Rate (₹) Disc. Taxable value (₹)
1 OPC 53 grade cement, 50 kg bags 2523 600 bags 325.00 2% 1,91,100.00
2 Delivery to the Mysuru site 2523 1 trip 5,000.00 5,000.00
CGST 9% + SGST 9% 35,298.00
Total 2,31,398.00

Rupees Two Lakh Thirty-One Thousand Three Hundred Ninety-Eight only. Terms: 50% advance (₹1,15,699) with the order, balance before dispatch. Bank details and signature go below.

  • Seller and place of supply are both in Karnataka, so CGST and SGST apply [5][9]. Delivered to Hosur in Tamil Nadu, it would be IGST 18%, same total.
  • Freight charged with the goods takes the goods' rate as part of a composite supply (sections 2(30) and 8) [1].
  • The advance carries no GST, as cement is goods, but needs a receipt voucher [1][4]. If it is late, use our payment reminder messages.

Sample 2: proforma invoice for export (FOB Kolkata, US dollars)

EXP/26-27/031, 18 Oct 2026, valid till 17 Nov 2026. Exporter: Ganga Jute Works, Howrah, GSTIN 19GHIDE9012L1Z8, IEC GHIDE9012L. Buyer and consignee: Noord Retail B.V., Rotterdam. Origin India, by sea from Kolkata to Rotterdam, FOB Kolkata (Incoterms 2020).

# Description HS code Qty Unit price (USD) Amount (USD)
1 Jute shopping bag, 40 × 35 × 12 cm, two-colour print 4202 22 30 8,000 pcs 1.85 14,800.00
2 Jute shopping bag, 30 × 30 × 10 cm, same finish 4202 22 30 4,000 pcs 1.45 5,800.00
Total, FOB Kolkata 12,000 pcs 20,600.00

US Dollars Twenty Thousand Six Hundred only. Terms: 30% advance by telegraphic transfer (USD 6,180), balance against a scanned bill of lading, shipment within 45 days of the advance. Bank details with the SWIFT code and both signatures go below.

  • No GST line: exports are zero-rated, shipped under a Letter of Undertaking without IGST, or with IGST paid and refunded [5].
  • 4202 22 30 is India's 8-digit code for jute shopping bags [6]; the first 6 digits are the international HS code [10].
  • Need buyers first? Read how to find buyers for export from India.

How do you convert a proforma invoice into a tax invoice?

Do not edit the proforma. When the buyer confirms, issue a new tax invoice from your tax invoice series, with the final quantities and rates. Goods need it before or at dispatch, services within 30 days of supply. Quote the PI number and adjust any advance.

  1. Match the buyer's PO to the proforma and recheck HSN, rate and place of supply.
  2. Issue the tax invoice with the next number in your series and every rule 46 particular, on time [1][2]. Add "Against PI no. PI/26-27/0142".
  3. Show the advance and the balance. For services, adjust the GST paid on the advance in GSTR-1 Table 11 [5].
  4. Turnover above ₹5 crore in any year since 2017-18? Get an IRN and QR code from the e-invoice portal [8].
  5. Exports: add the LUT or IGST-paid endorsement and destination country [2], and prepare the commercial invoice cum packing list [10].
  6. Mark the proforma "converted" in your register.

What mistakes should you avoid on a proforma invoice?

Most proforma mistakes come from treating it like a tax invoice. The costly ones are wrong numbering, dispatching goods on a proforma, wrong GST on advances, and export terms that do not match the buyer's letter of credit.

  • Calling it a tax invoice, or using your tax invoice series, which must run consecutively [2].
  • Dispatching goods on it. The tax invoice must come before or at removal [1].
  • Taxing a goods advance, or not taxing a services advance [4][5].
  • Choosing IGST or CGST and SGST by billing address. For goods that move, the place of supply is where the movement ends [5].
  • No validity date, so an old price is paid months later.
  • Export terms that do not match the LC. At Karur Vysya Bank, an amendment costs at least ₹2,000 plus GST [13].

How do you make a proforma invoice format in Excel or Word?

Build one sheet or table with fixed blocks, fill it in for each order and save it as a PDF. This proforma invoice template fits one A4 page. In Excel, CGST and SGST each take half the rate when the place of supply is in your state. Otherwise IGST takes the full rate.

LayoutOne-page proforma invoice layout

PROFORMA INVOICE This is not a tax invoice
Seller: name, address, GSTIN (IEC for exports)
PI no. ____ Date ____ Valid till ____
Buyer: name, address, GSTIN Place of supply: state, code
# Description HSN/SAC Qty Unit Rate Disc % Taxable value
Taxable value, CGST + SGST or IGST, total, amount in words
Terms, bank details (exports: Incoterm, ports, SWIFT, packing)
For (seller name) Authorised signatory

Row 12 formulas (quantity D, rate F, discount % G, GST % H, your state code B3, place of supply code B6):

  • Taxable value (I12): =ROUND(D12*F12*(1-G12/100),2)
  • CGST (J12) and SGST (K12): =IF($B$3=$B$6,ROUND(I12*H12/200,2),0)
  • IGST (L12): =IF($B$3=$B$6,0,ROUND(I12*H12/100,2))

These match the e-invoice system's tax formulas [9]. For the amount in words in lakh and crore, use our free proforma invoice generator.

FAQ

Can I claim input tax credit on a proforma invoice?

No. Section 16(2)(a) allows it only against a tax invoice or debit note, and rule 36 lists the documents that qualify [1][2].

Is a proforma invoice legally valid?

It is a commercial document with no standing under GST. Treat it as your offer and write only terms you will honour, since the buyer may pay or open an LC against it.

How long is a proforma invoice valid?

As long as you say. No GST rule sets a period, so print a "valid till" date.

Can I revise or cancel a proforma invoice?

Yes. It is not in your GST returns, so issue a revised one with a new number and cancel the old one. An LC opened on the old one may need a modified proforma signed by both sides [13].

Is a proforma invoice mandatory for export?

No. DGFT's mandatory export documents are the transport document, the commercial invoice cum packing list and the shipping bill [10]. Buyers and banks still ask for one before advances and LCs [12][13].

About the author

Rahul Vijay is a co-founder of Autobot (Convogenie Technologies, Bengaluru), an AI assistant with its own computer that works like an employee while you are away.

Sources

General information, not tax or legal advice.

All pages opened on 18 Oct 2026.

  1. Central Goods and Services Tax Act, 2017, CBIC consolidated text as amended up to 31 Aug 2021: sections 2(30) with its illustration, 2(66), 8, 10(4), 12, 13, 16(2), 31(1), 31(2) and 31(3)(c) to (e). The word "proforma" does not appear in it. https://cbic-gst.gov.in/pdf/CGST-Act-Updated-31082021.pdf
  2. Central Goods and Services Tax Rules, 2017, CBIC consolidated text as amended up to 24 Sep 2021: rules 36, 46 (including the export endorsement proviso), 47 and 50. The word "proforma" does not appear in it. https://cbic-gst.gov.in/pdf/24092021-CGST-Rules-2017-Part-A-Rules.pdf
  3. CBIC (prepared by NACIN), GST flyer "Tax Invoice and other such instruments in GST": proforma listed as a type of invoice, no format prescribed, receipt vouchers, GST on advances for services only, invoice serial numbers furnished in GSTR-1. https://www.gstcouncil.gov.in/sites/default/files/e-version-gst-flyers/Tax_Invoice_and_other_new.pdf
  4. Notification No. 66/2017-Central Tax, 15 Nov 2017 (tax on goods at the time in section 12(2)(a), for registered persons other than composition taxpayers). https://www.gstcouncil.gov.in/sites/default/files/2024-05/notfctn-66-central-tax-english.pdf
  5. CBIC, Frequently Asked Questions on GST, 3rd edition, 15 Dec 2018: time of supply (questions 2 and 7), advances in GSTR-1 Table 11 (question 19), exports as zero-rated supplies, place of supply of goods. https://www.gstcouncil.gov.in/sites/default/files/2024-02/final-gst-fq-31218.pdf
  6. PIB, "Recommendations of the 56th Meeting of the GST Council", 3 Sep 2025, with annexures (5% and 18% rates and a 40% rate, effective 22 Sep 2025; HSN 2523 cement from 28% to 18%; HSN 4202 22 30 handbags and shopping bags of jute). https://gstcouncil.gov.in/sites/default/files/2025-09/press_release_press_information_bureau.pdf
  7. Notification No. 78/2020-Central Tax, 15 Oct 2020 (HSN digits on tax invoices from 1 Apr 2021). https://www.gstcouncil.gov.in/sites/default/files/2024-05/notfctn-78-central-tax-english-2020.pdf
  8. E-invoicing notifications: No. 13/2020-Central Tax (21 Mar 2020), as amended by No. 70/2020-Central Tax (any preceding financial year from 2017-18, and exports) and No. 10/2023-Central Tax (five crore rupees from 1 Aug 2023). https://www.gstcouncil.gov.in/sites/default/files/2024-05/notfctn-13-central-tax-english-2020.pdf , https://www.gstcouncil.gov.in/sites/default/files/2024-05/notfctn-70-central-tax-english-2020.pdf , https://www.gstcouncil.gov.in/sites/default/files/2024-05/10ct_eng.pdf
  9. NIC, e-invoice API documentation, Generate IRN: document types (invoice, credit note, debit note), intra-state and inter-state rule (validations 23, 31 and 32) and calculation of tax values. https://einv-apisandbox.nic.in/version1.03/generate-irn.html
  10. DGFT, Foreign Trade Policy, Chapter 2 (v1.2.2): paragraphs 2.02 (ITC(HS) codes), 2.05 (IEC, same as PAN, mandatory for export and import) and 2.06 (mandatory export documents). https://content.dgft.gov.in/Website/Chapter_2_Revised_FTP_v1.2.2.pdf
  11. ICC, Incoterms rules (Incoterms 2020 is the most recent version, in force from 1 Jan 2020), https://iccwbo.org/business-solutions/incoterms-rules/ , and US International Trade Administration, "Know your Incoterms" (the 11 rules; FAS, FOB, CFR and CIF for sea and inland waterway only), https://www.trade.gov/know-your-incoterms
  12. HDFC Bank, Export and Import products, documentation requirements (export advance payment, import LC issuance, import advance remittance). https://www.hdfc.bank.in/wholesale-banking/export-import-products
  13. Karur Vysya Bank, forex import services: documents and charges for import LC issuance and amendment. https://www.kvb.bank.in/docs/customer-service-forex-import.pdf
  14. Sterling Bank (Nigeria), Trade Services: Form M, signed proforma invoices with a maximum validity of 90 days. https://sterling.ng/tradeservices/