Frequently Asked Questions
What is a proforma invoice? ＋
A proforma invoice is a preliminary invoice sent to buyers before goods/services are delivered. It shows estimated costs, quantities, and terms but is not a demand for payment. Unlike a tax invoice, it does not trigger GST liability.
Is GST applicable on a proforma invoice? ＋
No, a proforma invoice does not attract GST. GST is charged only on the final tax invoice issued after delivery. A proforma is a quotation or estimate, not a tax document.
What is the difference between a proforma invoice and a quotation? ＋
A quotation is an offer to sell at a stated price. A proforma invoice looks like an invoice and is used when the buyer needs a formal document for internal approvals, import/export purposes, or bank letter of credit, but the sale is not yet confirmed.
Can a proforma invoice be used for customs clearance? ＋
Yes. For imports and exports, customs often require a proforma invoice to assess the value of goods before the actual shipment. It is not a final commercial invoice but serves as an advance document.
How long is a proforma invoice valid? ＋
Typically 30–60 days, as prices and availability can change. Always mention the validity date on your proforma invoice to avoid disputes.