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Proforma Invoice Format

A proforma invoice is what you send before the work — to collect an advance or confirm a price. Fill it in below and download the PDF.

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Proforma invoice vs tax invoice

A proforma is issued before supply. It commits to a price and is commonly used to collect an advance, but it is an offer rather than a demand, so it does not create a GST liability and your client cannot claim input credit from it. The tax invoice is raised when supply actually happens — that is the document that carries the liability and the credit.

When a proforma is the right document

  • Collecting an advance before starting work
  • Giving a buyer something to raise a purchase order against
  • Confirming a price for import or export paperwork
  • Sending a payment request where the supply has not happened yet

The mistake that costs money

Raising a tax invoice to collect a 40% advance puts the GST liability into that month, even though the work has not happened. Send a proforma instead, and raise the tax invoice when you deliver. Confirm the treatment with your CA for your own situation.

Common mistakes

  • Sending a tax invoice for an advance
  • Numbering proformas in the same series as tax invoices
  • Not marking the document clearly as a proforma
  • Leaving out validity, so the quoted price never expires

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Questions

Does a proforma invoice create GST liability?
No. It is an offer, not a supply. The liability arises with the tax invoice. Confirm the treatment for your business with your CA.
Can a client pay against a proforma invoice?
Yes, that is the normal use — it is how most advances are collected. You then raise a tax invoice when the supply happens.
Should proforma invoices use a separate number series?
Yes, keep them separate from your tax invoice series so the tax series stays clean and continuous.
Is this really free?
Yes. Every document type, all eight templates and unlimited documents are free, and you do not need an account to make your first one.

This page is general information, not tax or legal advice. Rules change and what applies depends on your business — confirm anything important with your CA.