Proforma Invoice Generator
A proforma invoice is a preliminary bill sent before goods are shipped or services delivered. It tells the buyer exactly what they will pay — item-wise price, GST, freight and total — so they can arrange funds, raise a purchase order or open a letter of credit. It is not a tax invoice: no GST liability arises, it is not reported in GSTR-1, and the buyer cannot claim ITC on it. Once the order is confirmed and supplied, you issue the actual tax invoice.
When a proforma invoice is used
- Requesting an advance payment before dispatch (the tool calculates the advance from a percentage you set).
- Exports and imports — customs and banks often ask for a proforma invoice for valuation and remittance.
- Government or corporate buyers who need a formal quote to process internal approvals.
- Confirming price, quantity and specifications in writing to avoid disputes.
Proforma invoice vs quotation vs tax invoice
A quotation is an offer and may be loosely formatted. A proforma invoice looks like the final invoice and commits the seller to the stated terms until the validity date. A tax invoice is the legal document that creates a GST liability and a receivable in your books. Numbering should be kept in a separate series (for example PI-2026-001) so that proforma numbers never clash with tax invoice numbers.
Worked example
A furniture maker quotes 4 office tables at ₹9,000 each with 18% GST and ₹1,500 freight. Taxable value = ₹36,000; GST = ₹6,480; freight = ₹1,500; total = ₹43,980. With a 50% advance requirement, the proforma shows ₹21,990 payable now and ₹21,990 on delivery, valid for 15 days. After the buyer pays the advance, the maker issues a receipt voucher for ₹21,990 and, on delivery, a tax invoice for the full ₹43,980 adjusting the advance.
Tips
Always mention "This is not a tax invoice" and a clear validity date. If prices depend on exchange rates or raw material costs, add that as a note. Keep the proforma and the final invoice item-for-item identical so the buyer's accounts team can match them easily.
Frequently Asked Questions
Is GST payable when I issue a proforma invoice?
No. GST liability arises on the tax invoice or on receipt of advance (for services), not on a proforma invoice.
Should the proforma number match the final invoice number?
No. Use a separate series for proforma invoices and reference it on the final invoice.
Can a buyer pay against a proforma invoice?
Yes. Many buyers release advances against it. Issue a receipt voucher for the amount received.
How long should a proforma invoice be valid?
Typically 7 to 30 days. Set the validity date in the Details section and it prints on the document.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.