01At a glance
| Quotation | Proforma invoice | Tax invoice | |
|---|---|---|---|
| Purpose | Offer a price | Confirm terms before supply or advance payment | Bill a completed supply |
| Legally binding? | An offer until accepted | Not a demand for payment under GST | Yes |
| GST document? | No | No | Yes |
| Input tax credit for buyer? | No | No | Yes |
| Numbered in GST series? | No | No | Yes, consecutive |
02Quotation
A quotation (or estimate) tells the customer what you'll charge. It can include tax for clarity, but it isn't a tax document.
03Proforma invoice
A proforma invoice looks like an invoice and is often used to request an advance or for import paperwork. It is not a tax invoice, so the buyer can't claim input tax credit on it.
04Tax invoice
The tax invoice is issued for the actual supply and must follow Rule 46 of the CGST Rules. See our GST invoice format guide for the mandatory fields.
05The usual flow
- Send a quotation.
- On acceptance, optionally send a proforma for an advance.
- Issue the tax invoice when you supply.
In SuperForge, a quote converts to a GST invoice in one click.
06Questions
Can I claim GST on a proforma invoice?
No. Input tax credit needs a valid tax invoice.
Is a quotation the same as a proforma invoice?
No. A quotation is an offer; a proforma confirms agreed terms, often before an advance payment.
This article is general information, not tax or legal advice. GST rules change; confirm details with your chartered accountant or the official GST portal.
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