Free template
Proforma invoice format
Download a free proforma invoice format for India in Excel, Word and PDF. Use it as a pre-sale quotation or advance bill before dispatch — clearly marked as proforma, not a tax invoice.
Proforma invoice vs. tax invoice — key differences
| Feature | Proforma Invoice | Tax Invoice |
|---|---|---|
| GST liability | No | Yes |
| ITC claimable by buyer | No | Yes |
| Appears in GSTR-1 | No | Yes |
| Issued when | Before dispatch / confirmation | At / after dispatch |
| Heading must say | PROFORMA INVOICE | TAX INVOICE |
Proforma invoice format in Excel — preview
| # | Description | HSN | Qty | Unit Price (₹) | GST% | IGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|---|
| 1 | Air Compressor 10HP | 8414 | 5 Nos | 45,000.00 | 18% | 40,500.00 | 2,65,500.00 |
| 2 | Spare Parts Kit | 8487 | 10 Set | 3,200.00 | 18% | 5,760.00 | 37,760.00 |
| Grand Total (indicative) | ₹ 3,05,760 | ||||||
Proforma invoice — mandatory rules
- Heading must read "PROFORMA INVOICE" — never "Tax Invoice".
- State the validity period (e.g. "Valid for 30 days").
- Include payment terms (advance %, balance on delivery).
- Do not report in GSTR-1 or use to claim ITC.
- Issue a proper Tax Invoice once supply is made.
When businesses use proforma invoices
- Requesting advance payments from buyers
- Import/export shipments requiring customs clearance before sale
- Giving buyers a cost estimate to arrange funding or board approval
- Construction and project billing (progress billing before completion)
Frequently asked questions
What is a proforma invoice?
A proforma invoice is a preliminary bill sent to a buyer before goods are shipped or a service is delivered. It shows expected items, quantities, prices and GST but does not create a GST liability. Used for advance payments, import/export, cost estimates and project billing.
Does a proforma invoice create a GST liability?
No. A proforma invoice is not a tax document under the GST Act. It does not appear in GSTR-1 and the buyer cannot claim ITC on it. Once goods are dispatched or payment received, you must issue a formal Tax Invoice.
What is the difference between a proforma invoice and a purchase order?
A proforma invoice is sent by the seller as a preliminary bill or quotation. A purchase order (PO) is sent by the buyer to confirm the order. Both are used before the final tax invoice and often reference each other.
Can a proforma invoice be used for an advance payment?
Yes. Once any payment is received you must issue a Receipt Voucher, and when supply is made you must issue the final Tax Invoice. The proforma is not a substitute for these GST documents.
Is this proforma invoice template free?
Yes. Download Excel, Word or PDF at no cost. BillRaja lets you convert a proforma into a final tax invoice with one tap once the order is confirmed.
Related tools & guides
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