Proforma Invoice Format

Proforma invoice format

Mark it clearly so nobody books it as a sale. FundRaksha Book lets you issue a proforma invoice and convert it into a tax invoice in one click when you ship; the first 300 invoices are free.

PROFORMA INVOICE
(This is not a tax invoice. A tax invoice will be issued at the time of supply.)

Seller: [YOUR COMPANY NAME]
Address: [ADDRESS]
GSTIN: [YOUR GSTIN]   State: [STATE NAME]   State code: [CODE]
Phone: [PHONE]   Email: [EMAIL]

Proforma Invoice No.: [PI NO., e.g. PI/25-26/045]
Date: [DATE]
Valid until: [VALIDITY DATE]

Buyer: [BUYER NAME]
Address: [BUYER ADDRESS]
GSTIN: [BUYER GSTIN]   Place of supply: [STATE NAME AND CODE]
Buyer reference / enquiry no.: [REF NO.] dated [DATE]

S.No. | Description             | HSN/SAC   | Qty   | Unit | Rate (Rs.) | Amount (Rs.)
1     | [DESCRIPTION]           | [HSN/SAC] | [QTY] | [UOM]| [RATE]     | [AMOUNT]
2     | [DESCRIPTION]           | [HSN/SAC] | [QTY] | [UOM]| [RATE]     | [AMOUNT]

Taxable value:                    Rs. [AMOUNT]
CGST @ [RATE]% / SGST @ [RATE]% (or) IGST @ [RATE]%:  Rs. [AMOUNT]
Freight / packing:                Rs. [AMOUNT]
Total (estimated):                Rs. [AMOUNT]
Amount in words: Rupees [AMOUNT IN WORDS] only

Terms:
1. Payment: [X]% advance (Rs. [ADVANCE AMOUNT]) with order; balance [before dispatch / within [CREDIT DAYS] days of the tax invoice].
2. Delivery: within [NUMBER] days of receipt of advance, [ex-works / delivered] [PLACE].
3. Prices and taxes are as on the date above; GST will be charged at the rate applicable on the date of supply.
4. This proforma invoice is valid until [VALIDITY DATE].

Bank details for payment:
Account name: [ACCOUNT NAME]   Bank: [BANK NAME]
Account No.: [ACCOUNT NO.]     IFSC: [IFSC]

For [YOUR COMPANY NAME]
Authorised signatory: ____________________

Proforma invoice vs tax invoice

See the proforma invoice glossary entry for more on its legal status, and the tax invoice format for the document you issue at supply.

How to fill it

1. Use a separate PI number series so proforma and tax invoices never mix in your books or GST returns.
2. Write 'Proforma Invoice' at the top and add the line that it is not a tax invoice.
3. Give full item details, HSN/SAC and the GST rate, so the buyer's finance team can budget the full cost.
4. State the advance, the balance terms and the validity date.
5. When you receive an advance for services, issue a receipt voucher under Rule 50 and pay GST on it. For goods, GST on advances is not payable on receipt, but record the advance against the PI.
6. When the supply is made, issue a tax invoice that refers to the PI and shows the advance adjusted.

Common mistakes

• Shipping against a proforma invoice and never issuing a tax invoice. The buyer cannot claim ITC, and will often refuse to pay the balance until a proper invoice arrives.
• Booking a proforma invoice as a sale in your accounts or including it in GSTR-1.
• No validity date, so the buyer insists on old prices months later.
• Dispatching the full order on a promise of the advance, with nothing in writing.

What happens next, and when the buyer does not pay

A proforma invoice that the buyer accepts in writing, or pays an advance against, is evidence of the agreed price and terms. If the buyer later refuses the balance, the accepted PI, the advance receipt, the tax invoice and the proof of delivery together make the claim. A PI on its own, never accepted and with no supply, proves very little.

Where a buyer paid the advance and then stopped paying, the partial payment then stopped page explains the options. FundRaksha has handled ₹50 Cr+ of invoices for 1,000+ businesses; a free consultation costs nothing.