Key Differences Between Quotation, Proforma, and Tax Invoice

When running a small business in India, understanding the different types of documents under GST is crucial. Many entrepreneurs confuse GST proforma invoice format, free gst billing software for small business, and tax invoice. While these may seem similar, each has a unique role in the sales cycle. Let’s break down the key differences every business owner should know.

 What is a GST Quotation?

A GST quotation is a document issued by sellers to potential buyers before a deal is finalized. It is not legally binding but serves as a price proposal.

Businesses typically use:

• GST quotation format in Excel for bulk entries.
• GST quotation format in Word for professional presentations.
• GST quotation format PDF for secure sharing.
• Important GST quotation requirements include buyer and seller details, description of goods/services, HSN/SAC codes, GST rate, and validity period.

👉 Ready-to-use templates: create gst invoice online free

 What is a GST Proforma Invoice?

A GST proforma invoice is a preliminary bill issued before a tax invoice. It’s often used when goods/services are agreed upon but delivery/payment is pending.

It includes:

• Description of products/services
• Applicable GST ratesExpected payment termsAdvance billing detailsPopular formats include:
• Proforma invoice format in Excel for easy calculations.
• Proforma invoice format in Word for formal layouts.Proforma invoice format PDF for secure records.

👉 Explore samples here: GST Proforma Invoice Format

 What is a GST Tax Invoice?

A tax invoice is the final document issued after the supply of goods or services. It is legally binding and mandatory for claiming input tax credit (ITC).

It must include:

Invoice number and date

GSTIN of buyer and seller

HSN/SAC code

GST rate and amount

Total value

👉 Learn more here: Free GST invoicing software