Proforma Invoice Kya Hota Hai: Format and Use
*Last updated: 10 October 2026.*
Quick answer
A proforma invoice is a preview of the bill that you send to a customer before the sale. It shows the items, the quantity, the rate, the estimated tax and the total, so the customer can approve the order or pay an advance. It is not a tax invoice. You cannot use it to claim input tax credit, and it is not reported in your GST return. When the sale is done, you make the real tax invoice.
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When do you use a proforma invoice?
- •When the customer wants to see the full amount before ordering.
- •When you ask for an advance payment before you start work or send goods.
- •For custom orders, where the price needs the customer's approval.
- •For export papers and bank paperwork, where a preview of the bill is asked for.
- •For government or large company purchases, where an approval is needed first.
What to write on a proforma invoice
GST law does not give a fixed format for a proforma invoice, so you can use a simple one. Good practice is to show:
- •The words "Proforma Invoice" and a line saying that it is not a tax invoice.
- •A proforma number and the date.
- •Your name, address and GSTIN, and the customer's name, address and GSTIN.
- •The items, with HSN or SAC code, quantity and rate.
- •The estimated GST, and the total amount. You can check rates on the free HSN code finder.
- •The payment terms, the delivery time and how long the price is valid.
- •Your signature.
Proforma invoice vs tax invoice vs quotation
| Quotation | Proforma invoice | Tax invoice | |
|---|---|---|---|
| What it is | A price offer | A preview of the bill | The real bill for a sale |
| When | Before the customer decides | Before the sale, after the customer shows interest | After or at the time of the sale |
| GST document? | No | No | Yes |
| Input tax credit for the buyer? | No | No | Yes |
For quotations, read Quotation vs invoice: when to send which and Convert a quotation to a GST invoice. For the real bill, read Mobile se GST bill kaise banaye.
Is GST payable on a proforma invoice?
Not just because you issued one. GST is linked to the real supply and the tax invoice. But if you receive an advance, there can be GST rules for that advance, and these differ for goods and services. Ask your CA how to handle advances in your business.
Common mistakes
- •Using a proforma invoice as the final bill.
- •Not writing that it is not a tax invoice.
- •Letting the customer pay on a proforma invoice and never issuing the tax invoice.
- •Leaving out the validity date of the price.
- •Writing a different amount on the tax invoice without telling the customer.
Make the real bill fast
When the customer approves, you should be able to make the tax invoice quickly. In Udyog, you can keep your customers, items and HSN codes ready, make the bill and share it on WhatsApp.
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*This post is for general information. GST rules change often, so check the latest notifications or ask your CA before you file.*
Frequently asked questions
Quick answers to common questions.
What is a proforma invoice?
A proforma invoice is a preview of the bill that a seller sends before the sale. It is not a tax invoice.
Is a proforma invoice a tax invoice?
No. It is not a GST tax invoice and it is not reported in your GST return.
Can a buyer claim input tax credit on a proforma invoice?
No. Input tax credit needs a valid tax invoice or a similar document.
Is there a fixed format for a proforma invoice?
GST law does not give a fixed format. Use a clear one, with the items, rates, estimated tax and terms.
What is the difference between a proforma invoice and a quotation?
A quotation is a price offer. A proforma invoice is a more detailed preview of the bill, often used to ask for an advance.
Do I still need a tax invoice after a proforma invoice?
Yes. When the sale happens, you make the tax invoice.