A quotation is a sales document and a legal one at the same time. Written well, it closes the deal and protects you when the client's memory of "what was included" drifts. "Quotation format" is a top business search every month because most templates are just price lists — they miss the parts that matter.
The nine parts of a good quotation
- Header — your business name, address, GSTIN, phone, email; quotation number and date. The quotation builder fills these from your saved profile.
- Client details — name, company, address, GSTIN if B2B (they'll want it for their PO).
- Reference / project — "Interior work, 2BHK, Sector 21" or the client's enquiry reference.
- Scope of work — what exactly is included, in plain sentences. This is the paragraph that ends arguments.
- Itemised prices — description, quantity, unit, rate, amount. Separate materials and labour for contractors; separate deliverables and revisions for agencies.
- Taxes — show GST per line or state "plus GST @ 18%". Never leave tax ambiguous; a "₹1,00,000 all-inclusive" quote silently costs you 15% if the client assumes GST is inside.
- Validity — "valid for 15 days"; materials prices move.
- Terms — payment schedule (advance / milestones / on delivery), timeline, what happens on change of scope, warranty, exclusions (civil damage, transport, statutory approvals).
- Acceptance — a line for the client to sign/date, or "reply 'Approved' to this email to accept".
Example wording that works
Scope: "Supply and installation of modular kitchen as per drawing K-02 dated 12 Sep 2026, including 18 mm BWP ply carcass, laminate shutters, SS baskets (3), soft-close hinges. Excludes countertop, plumbing, electrical points and painting."
Payment: "40% advance to confirm order; 40% on delivery of material to site; 20% on completion and handover. Payments by UPI/NEFT to the account below."
Validity & changes: "Prices valid till 5 October 2026. Any change in scope, material or quantity will be quoted separately before execution."
Timeline: "3–4 weeks from receipt of advance and site readiness."
GST on quotations
A quotation itself has no GST effect — nothing is supplied yet. But state the GST treatment clearly:
- B2B: "plus GST @ 18% (SAC 9954)". Use the GST calculator to show inclusive totals if the client prefers.
- B2C: many customers prefer an all-inclusive number; show the breakup in small print so the invoice matches.
- Composition dealers: state "GST not applicable — composition taxable person".
When the client accepts and pays an advance, issue a proforma invoice or receipt voucher; the tax invoice comes at supply. See invoice vs bill vs receipt vs quotation.
Pricing structure that improves acceptance
- Three options (basic / standard / premium) raise average order value; most clients pick the middle.
- Round totals but itemised lines — clients trust detail and remember round numbers.
- Show the discount as a line ("Festive discount −₹5,000") rather than a silently lower rate; it anchors the value.
- Optional add-ons at the bottom ("Extra coat of paint: ₹6,000") sell themselves.
Mistakes that cost money
- No validity date — material prices rise, client accepts three months later at the old price.
- "Approx." in prices — legally a quotation with "approx." is not an offer capable of acceptance; use fixed prices with a change clause.
- Missing exclusions — the client assumes transport, taxes and approvals are included.
- No revision limit for creative work — "unlimited revisions" is how agencies lose margin.
- Quoting from WhatsApp chat without a document — unenforceable and unprofessional.
Follow-up rhythm
Day 2: "Did the quotation reach you? Happy to walk you through it." Day 7: value reminder (a photo of similar work). Day 14: validity reminder. After expiry: re-quote at current prices — not the old ones.
FAQ
Is a quotation legally binding?
Once accepted (signature, email, or advance payment), it forms a contract on those terms. Until then it is an offer you can withdraw.
Should a quotation have GST?
It should state the GST treatment; it doesn't create GST liability. Tax is charged on the invoice at supply.
What is the difference between an estimate and a quotation?
An estimate is an approximate figure that may change; a quotation is a fixed offer. Use "quotation" when you are ready to commit to a price.
Can I revise a quotation after sending it?
Yes, before acceptance — issue a new version with a new number and date, and withdraw the old one in writing.