Proforma Invoice Format Under Indian GST Rules: Complete Guide with Sample Template

A **proforma invoice** is a preliminary document issued before finalizing a sale, outlining estimated costs, quantities, and terms for goods or services. Unlike a tax invoice, it is not a legal document under GST and does not attract GST liability.[1][2]

What is a Proforma Invoice Under GST?

Under Indian GST rules, a proforma invoice serves as a quotation-like document to inform buyers about proposed prices, quantities, taxes, and conditions prior to actual supply. It must clearly state "Pro Forma Invoice" at the top to avoid being treated as a taxable sales invoice. If labeled as a sales invoice, it becomes legally binding and reportable in GST returns.[1][3]

Proforma invoices are not recorded in accounting ledgers and no GST is payable on them. They help buyers review details like total costs including **rent invoice** components if applicable in service agreements, such as leasing or rental services, before committing.[1][2]

Legal Status of Proforma Invoice in GST

The GST Act does not explicitly define proforma invoices, placing them outside the scope of mandatory GST reporting. Sellers are not required to pay GST or upload them in returns like GSTR-1. However, best practices recommend including GST-related details for transparency, especially for exports or interstate supplies.[1][4]

Essential Elements of Proforma Invoice Format

There is no prescribed format under GST laws, but a standard proforma invoice should include:[2][3]

• Clear header: "Proforma Invoice"
• Unique invoice number and date of issue
• Seller's details: Name, address, GSTIN, contact info
• Buyer's details: Name, address, GSTIN (if applicable)
• Description of goods/services: HSN/SAC codes, quantity, unit price, line totals
• Subtotal, discounts, applicable taxes (CGST, SGST, IGST), total amount
• Validity period
• Terms of sale, payment terms, delivery conditions
• Bank details of supplier
• Signature of authorized person
• Customs certifications if for exports

For services like **rent invoice** in commercial rentals, include SAC codes (e.g., 9972 for real estate services) and specify GST rates (18% typically).[2][5]

Sample Proforma Invoice Template Under GST

Here's a basic HTML-like representation of a proforma invoice format compliant with Indian GST rules:

Terms: Payment within 30 days. Subject to Mumbai jurisdiction. No warranty on rented items.

Authorized Signatory
ABC Enterprises

Differences Between Proforma Invoice and Tax Invoice

• Proforma: Preliminary, non-binding, no GST payment.[1]
• Tax Invoice: Issued on actual supply, legally binding, GST applicable and reportable.[7]

GST-Specific Inclusions in Proforma Invoice

Modern proforma invoices under GST include GSTIN, HSN/SAC codes, and tax breakdowns (CGST/SGST for intra-state, IGST for inter-state). This differs from pre-GST era which used VAT/CST numbers.[2][5]

Best Practices for Creating Proforma Invoices

Use billing software for generation. Always specify validity (e.g., 30 days) to prevent misuse. For **rent invoice** scenarios, detail lease terms, security deposits, and GST clearly. Maintain records for audits despite non-legal status.[3][6]

Common Mistakes to Avoid

• Using "Tax Invoice" or "Sales Invoice" header – makes it taxable.[1]
• Omitting GST details – reduces credibility.
• No validity period – leads to disputes.
• Ignoring HSN/SAC codes – essential for classification.[4]

Proforma invoices streamline business by setting clear expectations. Consult a GST expert for complex transactions involving **rent invoice** or exports.