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Quotation format

A quotation shows you and the buyer, each item's rate and GST, the total and a valid-till date. Below: every field, a filled example and a free quotation maker.

By , co-founder of Autobot 10 min read

What is a quotation?

A quotation, or quote, is a written offer to supply goods or services at stated prices, sent before the buyer orders. Nothing is payable until the buyer accepts it.

What should a quotation include?

Field What to write
Title and number "Quotation" and your own series, like QT/26-27/0087.
Your details Name, address, phone, email, GSTIN and state.
Buyer's details Name, address, GSTIN and contact person; only the state if unregistered. Several GSTINs? Ask which to quote [1].
Date and valid till Both as dates, like "valid till 6 Nov 2026". Typical: 7, 15 or 30 days; 7 if prices follow metal, cotton, fuel or currency.
Description Size, grade, make, model, colour, packing and what is not included.
HSN or SAC HSN for goods, SAC for services. Tax invoices need 4 digits up to ₹5 crore turnover, 6 above [8].
Quantity, rate, discount Unit, rate before GST, line discount. GST is charged on the price after any discount shown on the invoice [1].
Freight and packing Charges billed with the supply are part of its value [1]. With mixed rates, build them into the item rates.
Terms Payment, delivery time, warranty and "GST at the rate in force on the date of supply" [1]. Micro and small suppliers: written credit is capped at 45 days [9] (MSME 45 days payment rule).
Signature Authorised signatory and an "Accepted by" line.

How do you show GST on a quotation?

Use each item's own rate, from its HSN or SAC code. Charge CGST and SGST, half the rate each, when your state is the place of supply, and IGST, the whole rate, when it is not [6].

Rate Examples
Nil Exercise books, notebooks, pencils, erasers [10]
5% Garments up to ₹2,500 a piece, textile caps and hats, bamboo or cane furniture [5]
18% Air conditioners, televisions, computers, cement, other furniture, IT design and support services [5][11][12]
40% Cars above the small-car limits, motorcycles above 350 cc, sugary aerated drinks, pan masala and tobacco [5]
3%, 1.5%, 0.25% 3% on gold, silver and jewellery; 1.5% on diamonds other than rough; 0.25% on rough diamonds and precious stones [5]

The 57th GST Council meeting on 8 Oct 2026 recommended no new slabs [13]. To split a price that includes GST, use our GST calculator.

  • Place of supply for goods: the state where delivery ends. A Tiruppur seller delivering to the buyer's Bengaluru plant charges IGST, even if the buyer's office is in Coimbatore [6]. For an unregistered buyer, the state on the invoice [14].
  • Place of supply for services to a registered buyer: the buyer's location, or the property's state for work tied to a property [6].
  • UTGST replaces SGST in Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar, and Dadra and Nagar Haveli and Daman and Diu [15].

Quotation format example with GST

A uniform maker in Tiruppur quotes a factory in Coimbatore, both in Tamil Nadu, so CGST plus SGST apply. Names, GSTINs and numbers are made up.

QT/26-27/0087, 22 Oct 2026, valid till 6 Nov 2026. From: Kongu Uniform Works, Tiruppur, GSTIN 33AQRDE4567K1Z3. To: Nilgiri Precision Parts Pvt Ltd, Coimbatore, GSTIN 33PQRDE5678K1Z2. Subject: embroidered uniforms for 300 staff. Place of supply: Tamil Nadu (33).

# Description HSN Qty Rate (₹) Disc. Taxable value (₹) GST
1 Cotton T-shirt, navy, logo embroidered 6109 300 pcs 380.00 5% 1,08,300.00 5%
2 Cotton cap, navy, logo embroidered 6505 300 pcs 95.00 28,500.00 5%
3 Polyester-viscose blazer, navy, logo embroidered 6203 40 pcs 3,600.00 1,44,000.00 18%
Taxable value 2,80,800.00
CGST 2.5% and SGST 2.5% on ₹1,36,800 6,840.00
CGST 9% and SGST 9% on ₹1,44,000 25,920.00
Total 3,13,560.00

Rupees Three Lakh Thirteen Thousand Five Hundred Sixty only. The 40% advance is ₹1,25,424.

TermsTerms and conditions you can copy

Prices are valid till 6 Nov 2026.
GST is extra, at the rate in force on the date of supply.
Payment: 40% advance with the order, balance before dispatch.
Delivery: within 21 days of the advance and the approved logo artwork. Prices include delivery.
Warranty: manufacturing defects replaced free within 15 days of delivery.

  • Garments of sale value up to ₹2,500 a piece are taxed at 5%, above that at 18% [5]. "Sale value" is the transaction value, not the retail price [16].
  • GST is worked out on ₹1,08,300, the T-shirt value after the discount, not ₹1,14,000. Delivered to a Bengaluru plant, the same lines would carry IGST of ₹6,840 and ₹25,920, with the same total.

Quotation vs proforma invoice vs estimate vs tax invoice

A quotation offers a price. A proforma invoice is the bill you send for an advance. An estimate is a rough cost. Only the tax invoice records the sale and goes into your GST returns.

Quotation Proforma invoice Estimate Tax invoice
When Before the order After the order, before supply While the scope is open Goods: before or at removal or delivery. Services: within 30 days of supply [1][2]
Buyer's input tax credit No No No Yes, if section 16 conditions are met [1]
E-invoice number No No No Yes, above the turnover limit [3][17]

Make a quotation in Word, Excel or PDF

Use Excel or Google Sheets for automatic sums, or the free quotation maker. Send a PDF, which is harder to alter, with a short covering email that gives the total, the validity and one next step. Use Word for a long service proposal.

State code in B3, place of supply code in B6. For row 12, with quantity in D, rate in E, discount % in F, taxable value in G and GST % in H:

  • Taxable value (G12): =ROUND(D12*E12*(1-F12/100),2)
  • CGST (I12) and SGST (J12): =IF($B$3=$B$6,ROUND(G12*H12/200,2),0)
  • IGST (K12): =IF($B$3=$B$6,0,ROUND(G12*H12/100,2))
  • Line total (L12): =G12+I12+J12+K12. Quotation total: =ROUND(SUM(L12:L31),0)

Give the GST column a drop-down of 0, 5, 18 and 40. Excel has no built-in total in words with lakh and crore; the free maker writes it for you.

Quotation format for services and export

  • Services: say what is included and what costs extra, tie payments to milestones, and give a start date and a support period.
  • Services example: a Pune studio quotes a Bengaluru company a website (SAC 998314, ₹81,000 after a 10% discount), hosting (998315, ₹18,000) and support (998313, ₹30,000). Taxable value ₹1,29,000, IGST at 18% ₹23,220, total ₹1,52,220 [11][12].
  • Export, GST: exports are zero-rated, so the quote has no GST line. The export invoice then says whether IGST is paid or the shipment goes under a letter of undertaking [6][2].
  • Export, trade terms: name the currency and an Incoterms 2020 rule with its place, like FOB Chennai. FAS, FOB, CFR and CIF are for sea and inland waterway transport only [18]. Use the 8-digit HS code and your IEC, the same as your PAN [19].

Quotation mistakes to avoid

  • No valid-till date, so an old price comes back months later [7].
  • A GST rate from a template written before 22 Sep 2025, or picked from the product name instead of the HSN or SAC code [5].
  • IGST or CGST and SGST chosen by billing address, not place of supply [6][14].
  • Quotes numbered in your tax invoice series, which must run consecutively [2].
  • An editable file sent out, or a purchase order confirmed at rates that differ from your quote.

FAQ

Is GST mandatory on a quotation?

GST law sets no content for a quotation [1][2]. Show GST if you are registered; composition and unregistered sellers cannot collect it [1].

Is a quotation legally binding?

It can be. An accepted offer becomes a promise (Contract Act, section 2), but you can withdraw it before acceptance [7].

How long should a quotation be valid?

You choose. The GST rules and the Contract Act set no period, and with none written it lapses after a reasonable time, which can be disputed [7]. Typical: 7, 15 or 30 days.

How do I turn a quotation into an invoice?

Do not edit it. Issue a new tax invoice with the final quantities and rates, your next invoice number and the quotation number [1][2].

Which GST rate should I put on a quotation?

The rate for each item's HSN or SAC code, mostly 5% or 18% since 22 Sep 2025 [4][5]. Write "GST at the rate in force on the date of supply" [1].

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 25 Oct 2026.

  1. Central Goods and Services Tax Act, 2017, CBIC consolidated text as amended up to 31 Aug 2021: sections 2(30), 8, 10(4), 14, 15, 16(2), 31 and 37. The word "quotation" 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 10, 46, 46A and 47. The word "quotation" does not appear in it. https://cbic-gst.gov.in/pdf/24092021-CGST-Rules-2017-Part-A-Rules.pdf
  3. NIC, e-invoice API documentation, Generate IRN: the document types are invoice, credit note and debit note. https://einv-apisandbox.nic.in/version1.03/generate-irn.html
  4. PIB, "Recommendations of the 56th Meeting of the GST Council", 3 Sep 2025, with annexures (a 5% and 18% structure with a 40% rate from 22 Sep 2025; air conditioners, televisions and cement from 28% to 18%; uncoated writing and printing paper from 12% to 18%; exercise books and notebooks from 12% to nil). https://gstcouncil.gov.in/sites/default/files/2025-09/press_release_press_information_bureau.pdf
  5. Notification No. 9/2025-Integrated Tax (Rate), 17 Sep 2025 (integrated tax of 5%, 18%, 40%, 3%, 1.5% and 0.25% by HSN code), as amended by No. 19/2025-Integrated Tax (Rate), 31 Dec 2025 (the 28% schedule omitted and tobacco moved to 40% from 1 Feb 2026). https://taxinformation.cbic.gov.in/view-pdf/1010431/ENG/Notifications , https://taxinformation.cbic.gov.in/view-pdf/1010535/ENG/Notifications
  6. CBIC, Frequently Asked Questions on GST, 3rd edition, 15 Dec 2018: chapter 22 on place of supply (goods, services for registered and unregistered recipients, services linked to immovable property) and the answers on zero-rated and composite supplies. https://www.gstcouncil.gov.in/sites/default/files/2024-02/final-gst-fq-31218.pdf
  7. Indian Contract Act, 1872, sections 2(a), 2(b), 5 and 6, bare act text on AdvocateKhoj (India Code did not load when we tried): https://www.advocatekhoj.com/library/bareacts/indiancontract/2.php , https://www.advocatekhoj.com/library/bareacts/indiancontract/5.php , https://www.advocatekhoj.com/library/bareacts/indiancontract/6.php
  8. 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
  9. Micro, Small and Medium Enterprises Development Act, 2006, Gazette text (scanned copy), sections 2(b) and 15. https://samadhaan.msme.gov.in/WriteReadData/DocumentFile/MSMED2006act.pdf
  10. Notification No. 10/2025-Integrated Tax (Rate), 17 Sep 2025 (goods exempt from integrated tax, including erasers, exercise books, notebooks and pencils). https://taxinformation.cbic.gov.in/view-pdf/1010432/ENG/Notifications
  11. Notification No. 11/2017-Central Tax (Rate), 28 Jun 2017, heading 9983, item (ii): 9% central tax, so 18% GST. Notification No. 15/2025-Central Tax (Rate), 17 Sep 2025, left that item unchanged. https://taxinformation.cbic.gov.in/view-pdf/1000997/ENG/Notifications , https://taxinformation.cbic.gov.in/view-pdf/1010453/ENG/Notifications
  12. GST Council, Scheme of Classification of Services (amended): SAC 998313, 998314 and 998315. https://gstcouncil.gov.in/sites/default/files/2024-02/scheme_of_classification_of_services_amended.pdf
  13. PIB, "Recommendations of the 57th Meeting of the GST Council", 8 Oct 2026: process reforms and item-level clarifications; the rate structure from the 56th meeting is not changed. https://www.gstcouncil.gov.in/sites/default/files/2026-10/press_release.pdf
  14. CBIC Circular No. 209/3/2024-GST, 26 Jun 2024, quoting clause (ca) of section 10(1) of the IGST Act (goods supplied to an unregistered person, in force from 1 Oct 2023) and how it applies when the billing and delivery addresses differ. https://gstcouncil.gov.in/sites/default/files/2024-09/circular-no-209-03-2024.pdf
  15. Union Territory Goods and Services Tax Act, 2017, section 1(2) (extends to the Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Chandigarh and other territory), CBIC Tax Information Portal. https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_ut_gst_act/documents/Union_Territory_Goods_And_Services_Tax_Act,_2017_27-March-2020.html
  16. CBIC, GST Rates FAQs, last updated 3 Dec 2021, question 33: the "sale value" of readymade garments is the transaction value, not the retail price. The limit in that FAQ is Rs 1,000; Notification No. 9/2025 sets Rs 2,500 per piece from 22 Sep 2025. https://cbic-gst.gov.in/gst-rates-faq.html
  17. Notification No. 13/2020-Central Tax, 21 Mar 2020 (registered persons above a turnover limit prepare invoices through e-invoicing), as amended by No. 10/2023-Central Tax, 10 May 2023 (a limit of 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/2024-05/10ct_eng.pdf
  18. 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
  19. DGFT, Foreign Trade Policy 2023, Chapter 2 (v1.2.2): paragraph 2.02 (India's 8-digit national HS) and paragraph 2.05 (an IEC is a 10-character number, the same as the PAN). https://content.dgft.gov.in/Website/Chapter_2_Revised_FTP_v1.2.2.pdf