A quotation format is a document a seller sends to a buyer setting out the goods or services offered, quantity, unit price, applicable GST, total, delivery period, payment terms, validity and conditions. It should carry the seller's name, GSTIN, a quotation number and date, and the buyer's details. Once the buyer accepts it in writing or by issuing a purchase order against it, it forms part of a binding contract under the Indian Contract Act.
Quotation format (GST)
Send it on letterhead as a PDF. FundRaksha Book creates numbered quotations, tracks which ones were accepted, and turns them into tax invoices without retyping; the first 300 invoices are free.
QUOTATION [YOUR COMPANY NAME] [ADDRESS] GSTIN: [YOUR GSTIN] Udyam Registration No.: [UDYAM NO., if MSME] Phone: [PHONE] Email: [EMAIL] Quotation No.: [QTN NO., e.g. QTN/25-26/112] Date: [DATE] Valid until: [VALIDITY DATE] To, [BUYER NAME] [BUYER ADDRESS] GSTIN: [BUYER GSTIN] Kind attention: [CONTACT PERSON] Your enquiry: [ENQUIRY REF / EMAIL] dated [DATE] Dear Sir/Madam, Thank you for your enquiry. We are pleased to quote as follows: S.No. | Description / specification | HSN/SAC | Qty | Unit | Rate (Rs.) | Amount (Rs.) 1 | [DESCRIPTION] | [HSN/SAC] | [QTY] | [UOM]| [RATE] | [AMOUNT] 2 | [DESCRIPTION] | [HSN/SAC] | [QTY] | [UOM]| [RATE] | [AMOUNT] Sub-total: Rs. [AMOUNT] GST @ [RATE]%: Rs. [AMOUNT] Freight / installation: Rs. [AMOUNT or "Included"] Total: Rs. [AMOUNT] Amount in words: Rupees [AMOUNT IN WORDS] only TERMS AND CONDITIONS 1. Prices: [inclusive / exclusive] of GST at the rate applicable on the date of supply. 2. Delivery: within [NUMBER] days of receipt of your purchase order [and advance], [ex-works / delivered to [PLACE]]. 3. Payment: [[X]% advance with order, balance] within [CREDIT DAYS] days of the invoice date, by NEFT/RTGS. 4. Late payment: interest at [RATE]% per annum on amounts unpaid after the due date. [For micro/small suppliers: interest under Section 16 of the MSMED Act, 2006 applies to payments delayed beyond the agreed period.] 5. Inspection and claims: any shortage or defect must be notified in writing within [NUMBER] days of delivery; after that the goods are deemed accepted. 6. Ownership: goods remain our property until paid for in full. 7. Validity: this quotation is valid until [VALIDITY DATE]. 8. Jurisdiction: [CITY] courts [or arbitration at [CITY]]. These terms will form part of any order placed against this quotation. Please quote our quotation number on your purchase order. For [YOUR COMPANY NAME] [NAME], [DESIGNATION] Authorised signatory
How to fill it
- Number every quotation and keep a register; the buyer's PO should quote your number.
- Describe exactly what is included and what is not (installation, freight, testing, spares).
- Show GST separately with the rate, so there is no argument later that the price was inclusive.
- Set a validity date, especially if your input prices move.
- Write payment terms as a number of days from the invoice date, plus the advance if any.
- Add the inspection window, interest and jurisdiction clauses. For ready wording see the payment terms clause format.
Common mistakes
- No validity period, so the buyer accepts an old rate months later.
- 'Payment: as usual' or 'Payment: against delivery' with no number of days.
- Accepting the buyer's PO with 90-day terms without objecting, when your quotation said 30. Under Indian law the later document that is accepted usually governs, so reply in writing before dispatch.
- Quoting a micro or small enterprise credit period above 45 days. Section 15 of the MSMED Act caps it, and the buyer's late-payment interest liability starts after 45 days in any case.
How an accepted quotation helps if the buyer does not pay
An accepted quotation, with the PO and delivery proof, is a written contract for a fixed price. That is what allows a summary suit under Order XXXVII, where the buyer needs the court's leave to defend. It also proves the agreed credit period, the date from which interest runs, and the inspection window that defeats late quality complaints. If there is no PO at all, an email from the buyer saying 'please go ahead' on your quotation is still evidence of acceptance; keep it.
When an accepted order is not paid, FundRaksha Legal can send a notice within 24 hours. FundRaksha is trusted by 1,000+ businesses and charges a 30% success fee only on recovery. Start with a free consultation.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.