# Proforma invoice

> A proforma invoice is a preliminary bill sent before the sale is final, showing the goods or services, the price and the GST the customer will be charged. It is an offer or a request for advance payment, not a tax invoice, so it creates no GST liability and no input tax credit.

In EaseDesk: In EaseDesk a proforma invoice is a document of its own with its own number series. A quotation converts into a proforma, and the proforma into a sales order, delivery challan and tax invoice with one click each, so nothing is typed twice.

## Why it matters to your business

A proforma invoice lets your customer see exactly what they will pay before you commit stock or
start work, and gives them a document to release an advance against. Because it is not a tax
invoice, sending one does not start your GST liability or use up an invoice number.

## How it works

As of October 2026:

- A proforma invoice looks like the final bill: your details and [GSTIN](/glossary/gstin), the
  customer's, the items with [HSN codes](/glossary/hsn-code), quantity, rate, GST and the total,
  with payment terms and validity.
- It should be clearly headed "Proforma invoice" and numbered in its own series.
- It is not reported in [GSTR-1](/glossary/gstr-1) and is never registered as an
  [e-invoice](/glossary/e-invoice).
- When the goods are dispatched or the service is provided, you issue the
  [tax invoice](/glossary/tax-invoice). The amounts may differ from the proforma if quantities or
  prices have changed.
- An advance received for goods carries no GST until the invoice. An advance for services does.

## An example

A Rajkot machine-tool maker agrees to supply a lathe for ₹4,00,000 plus 18% GST. It sends a
proforma invoice for ₹4,72,000 asking for a 30% advance. The customer pays ₹1,41,600. On dispatch
six weeks later, the maker issues the tax invoice for ₹4,72,000, sets the advance against it and
collects the balance.

## Common mistakes

- Numbering proforma invoices in the tax invoice series, which leaves gaps in it.
- Reporting a proforma invoice in GSTR-1.
- A customer claiming credit on a proforma invoice.
- Forgetting to issue the tax invoice once the goods have gone.

## Questions

### Is a proforma invoice valid under GST?

It is a valid commercial document, but GST law does not treat it as an invoice. You do not report it in GSTR-1, and your customer cannot claim input tax credit on it.

### What is the difference between a quotation and a proforma invoice?

A quotation offers a price for the customer to consider. A proforma invoice is sent once the customer has agreed, in the form of the final bill, usually to collect an advance or to arrange a letter of credit or import paperwork.

### Do I pay GST when I receive an advance against a proforma invoice?

For goods, no. GST on goods is due when the tax invoice is issued. For services, GST is due on the advance, and you issue a receipt voucher for it.

### Should a proforma invoice have a number?

Yes, from a series of its own, kept separate from your tax invoice numbers.

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Source: https://www.easedesk.com/glossary/proforma-invoice · Updated 2026-10-02 · EaseDesk