Quotation Format for Indian Businesses (Free Template)
A quotation is an offer, not a tax document, so GST law does not prescribe its contents. What it must do commercially is remove every reason for the buyer to come back with a question: scope, price, tax treatment, validity and what happens next.
Quotation, proforma invoice or tax invoice?
A quotation is your offer to supply at a price. A proforma invoice is a commitment document the buyer uses to raise a purchase order or release an advance, and it still is not a tax document. The tax invoice comes at or after supply, and it is the only one of the three that carries input tax credit. Quoting GST as a separate line in the quotation avoids the most common argument in Indian B2B sales, which is whether the quoted price included tax.
What the document must contain
- Quotation number and date (required): Your own series. Buyers reference it on their purchase order.
- Your details and GSTIN (required): Signals you can issue a compliant invoice later.
- Buyer details (required): Name of the person who will approve it, not just the company.
- Item description and quantity (required): Specific enough that scope cannot be argued later.
- Rate, amount, GST shown separately (required): State clearly whether the price is inclusive or exclusive of GST.
- Payment terms (required): Advance, on delivery, or credit days.
- Delivery timeline (optional): Stated in working days from the purchase order, not calendar dates.
- Terms and conditions (optional): Warranty, freight, installation, and what is excluded.
Frequently asked questions
Is GST charged on a quotation?
No. A quotation is an offer, so no tax is payable on it. You show the GST that will apply so the buyer sees the final cost, but the liability arises on supply, with the tax invoice.
How long should a quotation be valid?
Fifteen to thirty days is normal in Indian B2B. Keep it shorter when your input costs move with commodity prices.
Can a quotation become a binding contract?
It can, once the buyer accepts it on its terms, typically by issuing a purchase order against it. That is why validity and exclusions belong in writing.
What is the difference between a quotation and a proforma invoice?
A quotation opens the negotiation. A proforma invoice is issued once terms are agreed, so the buyer can raise a purchase order or pay an advance. Neither carries input tax credit.