Is a proforma invoice legally binding?

No. A proforma invoice is a commitment on price and terms for the stated validity period, not a contract or a demand for payment. Neither party can be forced to complete the sale on its basis alone, and it cannot be used to claim input tax credit. The binding document is the tax invoice issued on supply.

Is GST charged on a proforma invoice?

GST is shown on a proforma so the buyer knows the final amount, but no tax liability arises because no supply has happened. You do not report a proforma in GSTR-1. If you receive an advance against it for services, you must issue a receipt voucher and pay GST on the advance in that month.

Does a proforma invoice affect my customer ledger or stock?

No. VyaparKit records a proforma as a sales document only, so the customer's outstanding balance and your stock levels stay unchanged. The ledger entry and stock reduction happen when you convert it into a GST or tax invoice, which is when the actual supply is recorded.

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

A quotation is an offer made while the buyer is still deciding, often one of several they compare. A proforma invoice comes after the buyer has decided and needs a document that looks like the final invoice, for an advance, a bank, customs or an internal PO. In VyaparKit a quotation can be converted into a proforma, and a proforma into an invoice.

Can a buyer pay an advance against a proforma invoice?

Yes, that is one of its main uses. Share the proforma link on WhatsApp; it includes a Pay via UPI button and a QR for the exact amount. Record the advance with a payment receipt. Remember that GST on advances for services is payable when the advance is received, so check with your CA.

Should proforma invoices use a separate number series?

Yes. Keep proformas in their own series so they never break the consecutive numbering of your tax invoices, which Rule 46 requires. VyaparKit uses a PI prefix by default, for example PI/26-27/0007, and lets you edit the prefix. The converted tax invoice takes the next number in the INV series.

Proforma Invoice

Create professional proforma invoices in seconds. Free PDF download for Indian businesses.

Free account · 5 invoices a month freeMade for India · ₹, GST, UPI, WhatsApp

In short

A proforma invoice is a preliminary bill sent before goods or services are delivered, showing the buyer what the final invoice will look like, including items, prices, GST and terms. It is not a demand for payment and does not enter the books. VyaparKit's proforma invoice generator creates it in seconds and converts it into a GST or tax invoice once the buyer confirms.

Free account required

Create a Proforma Invoice in under a minute

Sign in once with Google or email. Your business name, GSTIN, logo, bank details and saved customers fill in automatically. Download a PDF or share a link on WhatsApp. 5 invoices a month are free, forever.

Start free See what's free

✓Beautiful PDF with your logo and details
✓GST calculated automatically where applicable
✓Saved customers, vendors and items, so no retyping
✓Share link with WhatsApp button and UPI QR
✓Converts to related documents in one click

About the proforma invoice tool

Buyers in India often ask for a proforma invoice before releasing an advance, opening a letter of credit, raising an internal purchase order, or applying for a bank loan to buy machinery. The document mirrors a real invoice with the same items, rates, GST and totals, but it is numbered separately, usually with a PI prefix, and it creates no tax liability. Exporters use it to lock prices with overseas buyers; equipment dealers use it so the customer's bank can disburse funds.

Typing a proforma in Word and then retyping the same lines into the final invoice invites mismatches: a rate changes, a GST percentage is missed, the customer's GSTIN is typed wrong the second time. VyaparKit keeps proforma invoices in their own PI/26-27 series with a Valid until date, calculates GST exactly as the final invoice will, and lets you convert the proforma into a GST invoice or tax invoice with one click, so the two documents never disagree.

A proforma does not touch the customer ledger or stock, which is correct because nothing has been supplied yet. Once converted, the real invoice carries the ledger entry and stays linked to the proforma. Send it as a link on WhatsApp with a UPI QR if you want the advance paid immediately. Free accounts get 5 invoices a month, proformas included.

How to create a proforma invoice

1
Add the buyer
In Bill to, choose a saved customer or enter a new one with GSTIN and address. Set the Place of supply so GST is shown correctly.
2
Add items and terms
Click Add line for each product or service with HSN/SAC, Qty, Rate and GST. Fill Delivery terms and the Reference / enquiry no. the buyer gave you.
3
Set validity
Choose a Valid until date (15 days by default). Add payment terms such as 50% advance in the terms and conditions.
4
Create and send
Click Create proforma, then Download PDF or share via WhatsApp. The share link lets the buyer pay the advance via UPI.
5
Convert on confirmation
When the buyer confirms, open the proforma and choose GST Invoice or Tax Invoice under Create from this proforma. The final invoice inherits every line.

What a proforma invoice should contain

The words 'Proforma Invoice' clearly in the title so it is not mistaken for a tax invoice.
A separate number series (PI/26-27/0001) and the date of issue.
Seller and buyer names, addresses and GSTINs, so the final invoice can copy them.
Item descriptions with HSN or SAC, quantity, unit, rate and expected GST rate.
Estimated CGST, SGST or IGST and the total, marked as indicative.
Validity date, delivery terms and payment terms such as advance percentage.
Bank details or UPI ID if you expect an advance against it.
A note that this is not a tax invoice and does not entitle the buyer to input tax credit.

Who uses the proforma invoice

Machinery dealer whose customer needs a bank loan

A Coimbatore pump dealer issues a proforma so the buyer's bank can sanction and disburse the equipment loan before dispatch.

Exporter agreeing terms with an overseas buyer

The proforma fixes quantity, price, Incoterms and validity so the buyer can open a letter of credit.

Interior design firm collecting an advance

Send a proforma with 50% advance terms and a UPI link; convert to a tax invoice when the project starts.

IT hardware reseller responding to a corporate PO request

Corporate buyers raise their internal PO against a proforma; the final invoice then quotes that PO number.