Proforma invoice guide: what to send before the supply
A proforma invoice is the document you send before you actually deliver — to confirm scope, to request an advance, or to satisfy a buyer who needs a proforma for an import or tender. It looks like a bill, with GST and a total, but it is not a demand for payment and it is not the document your customer claims input tax credit on. This free generator produces a complete Indian proforma invoice with GSTIN, HSN/SAC and an automatic CGST, SGST or IGST breakup, then hands you a clean PDF.
Proforma invoice meaning: what it is, and what it is not
The meaning of a proforma invoice is simple once you separate it from the bill. It is a pre-supply document that shows a buyer exactly what you plan to supply, at what price, and under which tax treatment, so they can approve the scope and release an advance. It carries the same visual structure as a real bill — seller, buyer, line items, HSN or SAC code, tax breakup and total — which is precisely why people mistake it for the final invoice. Three things distinguish it. First, timing: a proforma comes before the supply exists, a tax invoice comes at the moment of supply. Second, legal weight: only the tax invoice supports input tax credit in your recipient’s GSTR-1, so a proforma can never be used to claim credit. Third, obligation: a proforma invites payment, it does not demand it, and it carries no independent right to recover money. In practice the term is also used loosely for a PIG invoice, and in foreign trade for a proforma invoice used to open an import licence or letter of credit. Know which one your buyer actually needs before you issue it.
Proforma invoice format and template: the layout to use
A usable proforma invoice template follows the same order every time, so the buyer can compare two of them without effort. Start with the words Proforma Invoice in the header, then a number and date. On the left, the supplier’s legal name, registered address and GSTIN; on the right, the customer’s name, billing address and GSTIN if they are registered. Follow with a line-item table carrying the description, HSN code for goods or SAC code for services, quantity, rate per unit, taxable value and GST rate. Close the document with the CGST and SGST breakup or a single IGST line, the total in figures, the total in words, the advance amount requested, a validity date, and your standard terms. This generator ships that layout in four ready designs — Standard, Modern, Service and Evergreen — and fills every field for you, including the automatic CGST, SGST and IGST split. It exports a print-ready PDF plus PNG and JPG images. If your finance team insists on an editable file, reproduce the same column order in Word or Excel: keep the taxable value in its own column so the tax breakup never has to be back-calculated, and leave the amount in words visible rather than hidden in a formula, because buyers and auditors read it.
Proforma invoice and tax invoice are not interchangeable
A tax invoice is issued at the time of supply and is the only document that supports input tax credit in your recipient’s GSTR-1. A proforma invoice is issued before supply. If a buyer asks for one, they usually want to see the price structure, the goods or services listed, and the advance they need to release. Issuing a proforma instead of a tax invoice, or treating a proforma as a final bill, creates problems at filing time, so raise a separate tax invoice once the supply actually happens.
The fields an Indian proforma invoice should carry
Start with a sequential serial number and the date, then the supplier’s legal name, address and GSTIN, and the customer’s name, address and GSTIN where the customer is registered. For each line, give the description, the HSN code for goods or SAC code for services, the quantity, the rate per unit and the GST rate. Finish with the taxable value, the discount if any, the CGST and SGST or IGST breakup, the total value in figures, the amount in words, and the advance amount you are requesting. Bank details are optional here, since a proforma is not a payment demand.
Choosing the correct tax split
For a supply within your own state, GST is divided equally into CGST and SGST. For a supply to another state, the whole amount is charged as IGST. The place of supply decides this, and for goods it usually follows the movement of the goods rather than the address of the buyer. Set the toggle before you generate the PDF, because changing it later changes the total your customer sees.
Keeping the number series clean
Number your proforma invoices in a separate series from your tax invoices, for example PI-001, PI-002, and never reuse a number. This makes it obvious at a glance which documents are pre-supply references and which are real tax invoices in your books, and it keeps the trail clean if the buyer’s auditor or your CA asks for both. Once the supply happens, reference the proforma number in the notes of the tax invoice so the two stay linked.
How to use this tool
- Enter the proforma number (for example PI-001), the date, and a valid-until date.
- Add your business name, address and GSTIN, then the customer’s name, address and GSTIN.
- Add line items with description, HSN or SAC code, quantity, rate and GST rate.
- Set the supply as intra-state or inter-state so CGST/SGST or IGST is split correctly.
- Add the advance amount and any terms, then download the PDF or share it on WhatsApp.
Example scenario
Send a proforma for ₹1,00,000 plus 18% GST, split as CGST ₹9,000 and SGST ₹9,000, with a total of ₹1,18,000 and an advance request of ₹50,000.
Note: A proforma invoice is a preliminary document. It is not a demand for payment and cannot be used to claim input tax credit. Raise a tax invoice at the time of supply.
Frequently asked questions
What is a proforma invoice?
A proforma invoice is a preview of the bill you send before goods or services are supplied. It shows items, qty, rate, GST and terms so the buyer can approve. It is not a request that must be paid, and it is not a GST tax invoice.
Is a proforma invoice the same as a GST tax invoice?
No. A tax invoice is issued after supply and is used for ITC and GSTR. A proforma is only an estimate of that invoice. Do not give the buyer a proforma if they need a tax invoice for GST.
Proforma invoice vs quotation vs estimate — what should I send?
A quotation / estimate is a price offer. A proforma looks like the final invoice (seller, buyer, HSN/SAC, tax split) but is still not the legal tax invoice. Use quotation when you are pitching. Use proforma when the buyer wants a document that looks like the bill for approval, LC, or advance. Use the GST invoice generator after you actually supply.
Can I show GST on a proforma invoice?
Yes, show CGST+SGST or IGST as you expect it on the final bill so there are no surprises. That does not make the document a tax invoice. Issue the real tax invoice with a proper invoice number after supply.
Does a proforma invoice have an invoice number?
Give it a separate series, e.g. PI/26-27/014. Do not reuse your tax-invoice numbers. When the order is confirmed, raise a new tax invoice from the GST invoice tool.
Can Indian exporters use this?
Yes. Exporters often send a proforma so the buyer can arrange payment or paperwork before shipment. Add currency, delivery terms and validity. After shipment, issue the commercial / tax invoice separately.
Is this free? Do I need to sign up?
Yes. Create and download the PDF in the browser. No account. Data stays on your device.
How do I turn this into a GST invoice?
Open the GST invoice generator, copy the same parties and line items (or use convert if you shipped that), then download the tax invoice with a real invoice number.