What a proforma invoice is, and what it must not say
A proforma invoice is issued before the supply happens — to request an advance, to accompany a purchase order, or for a customs or letter-of-credit purpose. That single fact drives every difference between it and a tax invoice. It shows the same commercial detail a buyer needs to approve the spend, including the GST breakup, but it carries no declaration, no reverse charge field and no demand for payment. These templates are the proforma version of the same layout, in Excel, Word and PDF.
Why issue one at all
Three situations come up constantly. A customer needs a document on their letterhead before they can release an advance. A purchase order has to be priced and taxed before anyone commits. Or an export shipment needs a document showing the value and the tax treatment at the time of despatch. In each case the tax invoice is still raised on supply, and the proforma is the document that comes before it.
Proforma invoice vs tax invoice vs quotation
These three are regularly confused, and sending the wrong one creates real friction. A quotation is an offer before the work is agreed, so it carries a validity date and no tax demand. A proforma invoice comes after the work is agreed but before payment, so it carries the price and the tax and asks for an advance. A tax invoice comes on supply and is the only one of the three that carries an input tax credit claim.
| Quotation | Proforma invoice | Tax invoice | |
|---|---|---|---|
| When it is issued | Before the work is agreed | After the work is agreed, before payment | On supply |
| Purpose | Offer a price | Request an advance or accompany a PO | Bill for goods or services supplied |
| GST breakup shown | If the customer is registered | Yes | Yes |
| Demands payment | No | For an advance only | Yes |
| Carries ITC claim | No | No | Yes |
| Valid until / due date | Validity date | Validity date | Payment due date |
Showing the tax without triggering it
A proforma invoice can show the GST that will apply, and often should, because it tells the buyer exactly what they will be charged and helps them budget. Two things must hold. The rate shown must be the rate that actually applies to the supply, and the tax invoice raised later must reconcile with it. A proforma on its own does not make you liable to pay GST before the supply, which is the practical reason it is safe to issue one showing tax.
What the templates include
Each format carries the fields a proforma needs rather than the ones a tax invoice needs: a proforma number and date, place of supply, a reference or purchase order number, a valid-until date, and an advance-required flag instead of a reverse charge flag. The totals block separates the total proforma value from any advance already received and works out the advance still payable, and the bank details block tells the buyer where to send it. There is no declaration, because nothing has been supplied and nothing is being certified as true.
Choosing a format
Excel is the right choice when the advance amount or the line items will change before the tax invoice is raised, because the tax columns are live formulas and the advance payable recalculates from what you enter. Word is right when either side needs to sign or stamp the document, or when it has to carry your letterhead. PDF is right for a fixed copy to send with a purchase order or to a bank — it cannot be altered in transit, which matters for a document that authorises money to move.
Common mistakes to avoid
The recurring problems are all about tone. A proforma invoice that reads as a demand for payment gets escalated as unpaid rather than approved as an advance. One that carries a declaration asserting the particulars are true is overstating what you can certify. One that omits the validity date leaves the buyer unable to tell whether the price still stands. The templates mark the document as not a tax invoice and not a demand for payment in the header, so that framing survives being forwarded.
Frequently asked questions
What is a proforma invoice and when do I need one?
A proforma invoice is issued before the supply happens, usually to request an advance, to accompany a purchase order, or for a customs or letter-of-credit purpose. It shows what the supply will cost and what tax will apply, but it is not a demand for payment and it is not a tax invoice. A proper tax invoice under Section 31 of the CGST Act is raised later, on supply.
How is a proforma invoice different from a GST invoice?
A GST tax invoice is a demand for payment and must carry every particular listed in Rule 46 of the CGST Rules, including a consecutive serial number and a declaration that the particulars are true. A proforma invoice carries the same commercial details — GSTIN, HSN/SAC, the CGST/SGST/IGST breakup — but no declaration and no payment demand, and it is explicitly marked as not being a tax invoice.
Can I collect GST on a proforma invoice?
Yes, and showing the tax breakup is often the reason one is issued, because it tells the buyer exactly what they will be charged. The tax charged must match what is actually levied on the supply, and the tax invoice raised on supply must reconcile with it. A proforma invoice by itself does not make you liable to pay GST before the supply.
Which format should I download for a proforma invoice?
Choose Excel if the advance amount or the line items may change before the tax invoice is raised, because the tax columns are live formulas. Choose Word if the document needs a signature or a stamp from either side. Choose PDF if you want a fixed copy to send with a purchase order or to a bank for an advance.
Does the proforma template include advance payment details?
Yes. The totals block separates the total proforma value from any advance already received and works out the advance still payable, and the bank details block tells the buyer where to send it. That is the main practical purpose of the document.
Do these proforma templates work without signup?
Yes. There is no account step and no email field. Every file is generated in your browser and handed straight to your browser as a download, with no watermark and nothing uploaded.
Can I change the design of the proforma template?
Yes. Five designs are available — Classic, Formal, Minimal, Mono and Compact. They change the typeface, the colours, how the header and the total are set and how many item rows fit on the page, but not a single field of the document. Choose Formal if the proforma will be filed with your accounts, and Compact if the line-item list is long.