GSTIN Requirements on Proforma Invoices: Essential Compliance Guide for Businesses in India

A **proforma invoice** under GST is a preliminary document issued before the actual supply of goods or services. Unlike a tax invoice, it does not create any GST liability but must include specific details like **GSTIN** for compliance. This guide explores the **GSTIN requirements on proforma invoices**, their format, key features, and common pitfalls to avoid.

What is a Proforma Invoice Under GST?

A proforma invoice serves as an estimate of prices, taxes, and delivery terms to help buyers obtain approvals or issue purchase orders. It is not a legal invoice and is not reported in GST returns. However, including the supplier's and recipient's **GSTIN** is critical for meeting GST framework requirements[1][2].

Mandatory GSTIN Requirements on Proforma Invoices

Every proforma invoice must prominently display:

• Supplier's GSTIN: Legal name, address, and GSTIN of the seller.
• Recipient's GSTIN: If applicable, include the buyer's GSTIN for transparency[1][2].

Omitting GSTIN can lead to compliance issues, especially in interstate or export transactions. Unlike pre-GST era, GST proforma invoices require **HSN/SAC codes** alongside GSTIN for proper classification[1][2].

Key Contents of a GST-Compliant Proforma Invoice

A standard format includes:

• Clear title: "Proforma Invoice" to distinguish from tax invoices.
• Unique invoice number and date.
• Description of goods/services with HSN/SAC codes.
• Estimated quantities, rates, and totals (excluding actual taxes).
• Tax classification: CGST, SGST, or IGST based on intra/inter-state supply.
• Validity period, payment terms, and delivery conditions.
• Authorized signature[1][2][3].

For **rent invoice** scenarios, such as leasing commercial space, the proforma must include SAC codes for rental services (e.g., SAC 9972), supplier/recipient GSTIN, and estimated rent amounts with applicable GST rates. This ensures clarity before issuing the final tax invoice[1].

Differences from Tax Invoices and Pre-GST Invoices

Proforma invoices differ from tax invoices as they do not trigger GST payment or input tax credit. Pre-GST versions used VAT/CST numbers, but now **GSTIN** and HSN/SAC are mandatory. Always label it "Proforma" to avoid it being treated as a taxable document[1][3].

Importance in Advance Payments and Exports

When advances are received against a proforma invoice, GST liability arises only upon issuing the final tax invoice. For exports, include GSTIN, PAN, and customs certifications. Proper GSTIN documentation aids in record-keeping and ITC claims later[2][6].

Common Mistakes to Avoid

• Using it as a tax invoice for payments.
• Missing GSTIN, HSN/SAC, or buyer details.
• Incorrect tax estimates (CGST/SGST/IGST).
• Not updating terms or validity periods[1].

Sample Proforma Invoice Template

Here's a basic HTML-like structure for reference:

Proforma Invoice
No: PI/2026/001 | Date: [Date]
Seller: [Name, Address, GSTIN]
Buyer: [Name, Address, GSTIN]
Description | HSN/SAC | Qty | Rate | Total
[Item Details]
Subtotal: Rs. XXX | Estimated GST: CGST XX%, SGST XX%
Total Est: Rs. XXX
Validity: 30 days | Terms: [Details]
Signature: [Authorized Person]

Businesses dealing in **rent invoice** for properties should customize with SAC codes and state-specific GST rates (e.g., 18% for commercial rent).

Legal Status and Compliance Tips

Under GST law, proforma invoices are not recognized as tax documents, so no GST payment is due on issuance. Maintain records with GSTIN for audits. Use GST-compliant software for accuracy[1][3]. For service exports by freelancers, include PAN and GSTIN explicitly[6].

Integrating **rent invoice** keywords in proformas for rental services ensures buyers understand GST implications upfront, facilitating smoother transactions.

Conclusion: Stay Compliant with Proper GSTIN Usage

Adhering to **GSTIN requirements on proforma invoices** prevents errors and builds trust. Always consult GST portals or experts for updates. Download free templates from reliable sources to streamline your invoicing[5].