Proforma Invoice Requirements for Indian Exporters: Essential Guide with HSN, SAC & Compliance

A **proforma invoice** is a preliminary document issued by Indian exporters to outline the details of a proposed transaction before finalizing the sale. It serves as a quote, helping buyers understand costs, terms, and specifications while aiding in customs clearance, financing, and insurance processes.[1][3]

Key Components of a Proforma Invoice

Every proforma invoice must include essential elements to ensure clarity and compliance. Start with a clear header labeled 'Proforma Invoice' and a unique reference number, such as PI/2026/001. Include the date of issue and validity period, typically 30 days to protect against forex fluctuations.[1][2]

Seller details should feature the legal name as per PAN, Indian address, GSTIN (if registered), IEC (Import Export Code), email, and phone. Buyer's details must list their legal name, full address including country, contact person, and any purchase order reference.[2][3]

Description of Goods or Services

Provide a detailed breakdown: description, quantity, unit price, HSN codes for goods, SAC codes for services, total amount, weights, dimensions (for goods), and country of origin. For example, include HS codes to facilitate customs clearance.[1][4]

Pricing must specify currency (e.g., USD, EUR), payment terms (e.g., bank transfer, Letter of Credit), and Incoterms like FOB, CIF. Mention estimated delivery timelines and shipping information.[1][5]

Tax, Payment, and Compliance Details

Include applicable taxes like GST (often zero-rated for exports), VAT if relevant, and note LUT (Letter of Undertaking) status. Add RBI purpose code for foreign currency transactions. For service exports, freelancers should include PAN/GSTIN and bank details like SWIFT/BIC, IBAN.[1][2]

Even though not legally mandatory under GST or RBI, best practices demand HSN/SAC codes, GST registration number, and taxation info. Declare it as a non-final invoice with disclaimers.[1]

Legal and Regulatory Compliance for Indian Exporters

Comply with GST guidelines, RBI requirements, and export documentation standards. The proforma invoice precedes commercial invoices and supports e-FIRA for remittances. For controlled goods, include export licenses.[4][2]

Digital signatures enhance credibility. Account for currency conversion and use providers for cross-border payments. Add certifications, signatures, and company seals.[1]

Special Considerations: Rent Invoice in Export Contexts

In some export scenarios involving leased equipment or premises, a **rent invoice** may be referenced alongside the proforma to detail rental components. Ensure the rent invoice aligns with proforma terms, including HSN codes for services and zero-rated GST status to avoid mismatches.[1][2]

Benefits for Indian Exporters and Freelancers

For manufacturers and freelancers, it sets expectations, enables financing, and eases customs. Upon acceptance, it converts to a commercial invoice matching bank and shipping formats.[1][2]

Best Practices and Common Mistakes to Avoid

Avoid vague scopes, missing IDs, unclear bank fields, or no validity. Digitally sign, use consistent numbering, and include dispute resolution clauses. For samples to India, use 'sample invoice' not commercial.[1][6]

Proforma invoices streamline exports, ensuring smooth international trade for Indian businesses. Prepare meticulously to minimize risks and disputes.[3][4]