PROFORMA INVOICE
Proforma invoice: meaning, format and how it differs from a tax invoice
Updated 11 November 2026 · CoreAnalytiq team
A proforma invoice is a draft bill you send before the sale happens. It tells the customer exactly what they will get and what they will pay, so they can approve the order, arrange a payment, or apply for a loan or import licence.
Is a proforma invoice a GST document?
No. GST law does not recognise a proforma invoice as a tax invoice. That means:
- No GST liability arises when you send it.
- It is not reported in GSTR-1.
- The customer cannot claim input tax credit on it.
When the goods or services are actually supplied, you issue a proper tax invoice. If you take an advance for services, a receipt voucher is issued and GST is payable on that advance. For goods, GST on advances is not payable at the time of receipt.
What to include
- The words "Proforma Invoice" clearly at the top.
- Your details and GSTIN, and the customer's details.
- A proforma number and date, and a validity date.
- Items, quantity, rate, HSN, discount and the GST that will apply.
- Payment terms, delivery time and bank or UPI details for any advance.
Quotation vs proforma vs tax invoice
| Quotation | Proforma invoice | Tax invoice | |
|---|---|---|---|
| When | Customer is comparing prices | Customer has agreed, before supply | At or after supply |
| Purpose | Offer a price | Confirm order, request advance | Record the sale, collect tax |
| GST liability | No | No | Yes |
| In GSTR-1 | No | No | Yes |
From proforma to invoice in one click
In CoreAnalytiq you can make a quotation or proforma and, once the customer confirms, convert it into a numbered tax invoice with the same items and prices. Nothing has to be typed again.
Questions people ask
Proforma invoice kya hota hai?
Proforma invoice sale se pehle diya jaane wala ek draft bill hai. Isse customer ko pata chalta hai ki use kya milega aur kitna dena hoga. Isme GST ki liability nahi banti.
Is GST charged on a proforma invoice?
The proforma shows the GST that will apply, but no tax is payable because of the proforma itself. Tax becomes payable when the actual tax invoice is issued, or on an advance received for services.
Does a proforma invoice need a number?
It is good practice to number proformas in their own series, separate from tax invoices, so the tax invoice series stays continuous.
Related guides
This guide explains GST rules in simple words for small businesses. It is not legal or tax advice. Rules and due dates can change, so confirm with your CA or the GST portal before you file.