A proforma invoice is the polite, precise way to say "this is what it will cost, and here is how to pay" before a sale is final. Exporters use it to open letters of credit, service firms use it to collect advances, and manufacturers use it to lock a quote into a document the buyer's finance team can process. This generator produces a clean, numbered proforma in your browser with your logo, GST breakup, bank details and an optional UPI QR — ready to send as a PDF or on WhatsApp.
What a proforma invoice is (and is not)
A proforma is a commitment to sell at stated terms, issued before goods are dispatched or services delivered. It is not a tax invoice: it does not create a GST liability, cannot be used by the buyer to claim input tax credit, and does not enter your GSTR-1. Once the buyer accepts and pays (or the goods move), you issue the actual GST tax invoice, which should mirror the proforma's line items so the two reconcile.
Because it looks like an invoice, label it clearly — the generator prints "PROFORMA INVOICE" in the header and a footer note that it is not a demand for tax. Give it its own numbering series (PI-2609-0001, for instance) so it never collides with your tax-invoice numbers.
When Indian businesses use one
- Advance payment requests. Interior contractors, event planners, and custom manufacturers ask for 30–50% upfront against a proforma. When the advance arrives, issue a payment receipt; GST on advances for goods is not payable until supply, while advances for services are taxable when received.
- Exports and imports. Banks need a proforma to process LC applications and outward remittances; customs brokers use it to pre-classify HSN codes.
- Corporate buyers. Many companies cannot raise a purchase order without a proforma from the vendor. Match their purchase order to your proforma line by line.
- Government tenders and institutional sales, where a "quotation-cum-proforma" is the expected format.
If you only need to state a price without payment instructions, a service quote or estimate is lighter. The differences are covered in Invoice vs bill vs receipt vs quotation.
What to include
| Section | Details |
|---|---|
| Header | "Proforma Invoice", your legal name, address, GSTIN, logo |
| Numbering | Unique series and date; validity date (e.g. 15 days) |
| Buyer | Name, billing and shipping address, GSTIN if registered |
| Items | Description, HSN/SAC, quantity, unit, rate, discount, taxable value |
| Tax | CGST + SGST or IGST by slab; total in words |
| Terms | Advance %, delivery lead time, payment mode, bank account and IFSC, UPI ID |
| Sign-off | Authorised signatory, "This is not a tax invoice" note |
How to use the generator
- Enter your business profile once — it is stored locally in the browser and reused across all Kaagazo invoice tools.
- Add the buyer, then the line items with HSN/SAC and GST rate. Use the HSN finder if you are unsure of the code.
- Set the validity period and the advance percentage you expect; the tool shows the advance amount separately.
- Add bank details or a UPI ID. The QR embeds the total (or the advance, if you choose) so the buyer can pay from the PDF.
- Download as PDF or share. When the deal closes, open the GST Invoice tool — your profile and items can be re-entered in a minute.
Practical tips
- Validity dates protect you from steel, copper or fuel price swings. Thirty days is normal; seven for volatile inputs.
- Quote inclusive of GST for consumers, exclusive for businesses. B2B buyers reclaim GST and want the taxable value visible.
- State delivery terms ("ex-works Ludhiana", "door delivery Mumbai, freight extra") to avoid arguments about who pays transport.
- Number sequentially and store PDFs; auditors sometimes ask to see the proforma behind a large advance.
Related tools
- Service quote & estimate — scoped quotations for projects with labour and material lines.
- GST invoice generator — the tax invoice you raise on supply.
- Payment receipt — acknowledge the advance.
- Purchase order — what the buyer sends back.
- Currency converter — for export proformas priced in USD, EUR or AED.