What should a quotation include?

A complete quotation includes your business name and contact details, the customer's details, a unique quote number, the date, a validity period, a clear list of items or services with quantities and rates, applicable taxes such as GST, the total amount, and your terms covering payment, delivery and any conditions. A signature or authorised name at the end makes it look professional and accountable.

Is a quotation legally binding?

A quotation on its own is an offer, not a contract, so it does not bind either side until the customer accepts it. That is why every quote should carry a validity period, for example valid for 15 days, after which your prices can change. Once the customer accepts a quotation in writing and you begin work or delivery, it starts to carry contractual weight.

What is the difference between a quotation and an invoice?

A quotation is sent before a sale to tell the customer what something will cost, so they can decide whether to buy. An invoice is sent after the sale is agreed to demand payment for goods or services already supplied or committed. A quote is a proposal, an invoice is a bill.

Do I need to add GST on a quotation?

If your business is registered under GST, you should show the applicable GST clearly on the quotation so the customer sees the full price they will pay. Splitting out CGST and SGST, or IGST for interstate supply, avoids arguments later when the invoice arrives. If you are not GST registered, state that prices are inclusive and no tax will be added.

How do I send a quotation quickly?

The fastest way is to keep a reusable template with your logo, terms and numbering already set, so you only fill in the customer and the items. Software that stores your product list and rates lets you build a quote in a minute and send it as a PDF over email or WhatsApp, and later convert the accepted quote straight into an invoice without retyping anything.

Quotation Format: Free Templates & What to Include (2026)

A good quotation wins business. It is often the first formal document a customer sees from you, and a clear, professional quote signals that you are organised and serious, while a scribbled figure on WhatsApp signals the opposite. A quotation is a written offer that tells a prospective customer exactly what you will supply and at what price, so they can decide whether to go ahead. This guide explains what a quotation must contain, gives you a sample format you can copy, shows how it differs from a proforma invoice, and covers how to send quotes fast so you close deals before a competitor does.

What is a quotation?

A quotation, sometimes called a quote or an estimate, is a document you send to a customer before any sale is agreed. It lists the goods or services you are offering, the price of each, the taxes that apply, and the conditions under which the offer holds. Unlike an invoice, a quotation does not demand payment. It is an invitation for the customer to say yes. Because it is an offer and not yet a contract, a good quotation always states how long the prices are valid, protecting you from being held to an old rate months later.

Must have fields in a quotation

Whether you sell tiles, tuition or transport, a professional quotation carries the same core fields. Missing any of them creates confusion and slows the deal down.

Your business details: name, address, phone, email, and your GSTIN and Udyam number if you have them.
Customer details: the name and contact of the person or company you are quoting.
Quotation number and date: a unique number for your records and the date you issued it.
Validity period: how long the quoted prices stay firm, such as valid for 15 days.
Line items: a clear list of each product or service, with quantity, unit rate and line total.
Taxes: GST shown clearly, split into CGST and SGST for local supply or IGST for interstate.
Grand total: the final amount the customer will pay, in figures and ideally in words.
Terms and conditions: payment terms, delivery timeline, warranty and anything else that governs the deal.
Authorised signature: your name and sign off so the quote looks accountable.

A sample quotation format

Here is a plain, complete layout you can adapt. Replace the sample details with your own and keep the structure.

QUOTATION

Sharma Interiors Quotation No: QTN-2026-058
12 MG Road, Pune 411001 Date: 14 August 2026
GSTIN: 27ABCDE1234F1Z5 Valid until: 29 August 2026
Phone: 98765 43210

To:
Green Valley Apartments Assoc.
Baner, Pune 411045

-------------------------------------------------------------
No. Description Qty Rate (Rs) Amount (Rs)
-------------------------------------------------------------
1 Modular kitchen cabinets 1 85,000 85,000
2 False ceiling (per sq ft) 300 120 36,000
3 Interior painting (labour) 1 18,000 18,000
-------------------------------------------------------------
 Subtotal 1,39,000
 CGST @ 9% 12,510
 SGST @ 9% 12,510
-------------------------------------------------------------
 Grand Total 1,64,020
-------------------------------------------------------------
Amount in words: One lakh sixty four thousand twenty rupees.

Terms:
1. 50% advance, balance on completion.
2. Work to begin within 7 days of advance.
3. Prices valid for 15 days from date above.

For Sharma Interiors
Authorised Signatory

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Quotation versus proforma invoice

People often mix these up, so it helps to be precise. A quotation is an offer sent early, to help a customer decide whether to buy at all. A proforma invoice comes a step later, once the customer has shown clear intent to buy, and it looks almost like a real invoice with a near final breakdown of costs. A proforma is commonly used for advance payments, for import and export paperwork, or to help a buyer arrange funds. The key point both share is that neither is a tax invoice, so neither creates a GST liability or lets the buyer claim input tax credit. Only the final tax invoice does that.

Sending professional quotes fast

Speed matters. Customers often ask several suppliers at once, and the one who sends a clean quote first is frequently remembered best. The trick is to stop rebuilding quotes from scratch. Keep a template with your logo, GSTIN, numbering and standard terms already in place, so each new quote only needs the customer and the items. Better still, use software that stores your product list and rates, calculates GST automatically, and sends the quote as a neat PDF over email or WhatsApp.

The real time saver comes at the next stage. When the customer accepts, you should not retype everything into an invoice. A tool that turns an accepted quotation directly into a GST invoice with one click removes errors and gets you paid faster. IndiaCRM keeps your quotes, invoices and customer history together, so you can quote in a minute, follow up on pending quotes, and convert the winners into bills without touching a spreadsheet. If you are weighing your options, our guide to billing software for small business compares the practical choices.

Following up on quotes you have sent

Most quotes do not turn into orders on the first day, and most owners never follow up, which is where business quietly leaks away. A polite follow up two or three days after sending a quote reminds the customer you are keen and gives them a chance to raise objections you can answer. Keep a simple list of which quotes are still open, which have been accepted and which have gone cold, and check it every week. A short message such as, may I answer any questions on the quotation I sent, often revives a deal the customer had merely forgotten. The businesses that follow up consistently close noticeably more of the quotes they send, without lowering their prices to do it.

Common mistakes to avoid

Three errors sink otherwise good quotes. First, leaving out a validity date, which lets a customer come back months later demanding your old price. Second, hiding the tax, so the total on the quote does not match the final invoice and trust breaks. Third, vague line items like miscellaneous work, which invite disputes about what was included. Spell out each item, show the tax, date the offer, and you will look more professional than most of your competition and argue less about scope later.