Proforma Invoice Maker

When do you need this document

A proforma invoice is an estimated commercial invoice sent by a seller to a buyer in advance of product shipment or service delivery. You need a proforma invoice when a customer requires an official pricing document to authorize advance payments, release corporate budget allocations, or establish an international letter of credit through their commercial bank. Importers and customs brokers also rely on proforma invoices for declaration and valuation purposes under the Customs Act, 1962 before shipments arrive.

It is essential to understand why a proforma invoice is not a statutory tax invoice. Under Indian GST law, a proforma invoice is purely an informational document. It does not record a completed taxable supply under Section 7 of the CGST Act, does not create an immediate tax remittance liability, and cannot be used by the buyer to claim Input Tax Credit under Section 16. A formal tax invoice must always be issued under Section 31 at or before delivery of goods, or within 30 days of service delivery.

What the document must contain

A well-constructed proforma invoice contains all critical terms necessary to facilitate advance funding and foreign trade:

• Prominent document title clearly marked as Proforma Invoice to prevent accounting confusion
• Unique proforma serial number and calendar date of issuance
• Seller entity name, trading address, tax identifier, and contact credentials
• Buyer legal name, billing address, and foreign port or domestic destination
• Currency indicator, such as Indian Rupee, US Dollar, Euro, British Pound, or UAE Dirham
• Itemized description of products or services, including HSN or SAC classification codes
• Estimated quantities, unit rates, subtotal amounts, and applicable delivery or shipping charges
• Estimated delivery timeline and applicable international trade terms such as CIF or FOB
• Seller banking coordinates, including account number, IFSC code, or international SWIFT code

How to fill it step by step with this tool

Creating an export-ready or domestic proforma invoice is fast and simple:

Step 1: Enter your business trading information, address, and GSTIN or commercial tax code.

Step 2: Enter buyer information, specifying their corporate billing address and delivery jurisdiction.

Step 3: Choose your operating currency, such as INR, USD, EUR, GBP, or AED, to match your client contract.

Step 4: Under the items grid, enter item descriptions, HSN/SAC codes, ordered quantities, and agreed prices.

Step 5: Record advance payment percentages, bank wire instructions, and delivery estimates in the notes area.

Step 6: Review the paper preview on the right and download the clean A4 PDF to deliver to your client or customs agent.

Common mistakes

Avoid these common commercial and tax errors regarding proforma invoices:

• Treating a proforma invoice as a tax invoice in accounting ledgers: Booking a proforma invoice as final sales turnover distorts revenue figures and creates tax reconciliation errors.
• Attempting to claim Input Tax Credit: Buyers who claim ITC based on a proforma invoice face disallowance under Section 16(2) of the CGST Act, as tax credit requires a formal tax invoice.
• Failing to issue a tax invoice after supply: After advance funds are received and goods are delivered, suppliers must issue a final tax invoice under Section 31 to properly discharge GST liabilities.
• Omitting international payment wire details: Leaving out SWIFT or IBAN details delays foreign currency inward remittances.

Frequently asked questions