How to use it
- Add your business. Name, address, GSTIN and bank details for the advance. Details saved in the invoice generator on this browser are filled in for you.
- Add the buyer. Name, address and GSTIN of the buyer. The State decides whether GST is shown as CGST + SGST or IGST.
- Number it and set validity. Use a separate series (PI/26-27/001) so proformas never mix with tax invoice numbers, and add a Valid until date.
- Add the items and terms. Items with HSN, quantity, rate, discount and GST rate. In Terms, write the advance asked, bank or UPI details and the delivery date.
- Send, then bill. Send the PDF. When you supply the goods, make the tax invoice in the GST invoice generator; that invoice, not the proforma, goes in your GST return.
Proforma invoice vs tax invoice
| Proforma invoice | Tax invoice |
|---|
| When | Before supply, after the order is agreed | At or before supply (s.31) |
|---|
| Heading | PROFORMA INVOICE | TAX INVOICE (Rule 46) |
|---|
| Number series | Separate, e.g. PI/26-27/001 | Consecutive, up to 16 characters, unique for the year |
|---|
| In GSTR-1? | No | Yes |
|---|
| Buyer's input tax credit | No | Yes, if the conditions in s.16 are met |
|---|
| Can be changed? | Yes, issue a revised proforma | Only through a credit or debit note |
|---|
Advance against a proforma: what GST law says
| Advance for | GST on the advance? | Document when the advance comes |
|---|
| Goods, regular registered seller | No; GST at the time of supply (Notification 66/2017-CT, s.12(2)(a)) | Receipt voucher (s.31(3)(d), Rule 50); tax invoice at supply |
|---|
| Services | Yes, on receipt (s.13) | Receipt voucher (s.31(3)(d), Rule 50) showing the GST; tax invoice at supply |
|---|
Compare all the pre-sale documents in quotation vs proforma invoice vs tax invoice. For the bill at the time of supply, use the GST invoice generator.
Sections and rules as published on taxinformation.cbic.gov.in, read on 25 October 2026. A proforma made here is for your buyer; it is not reported to the GST portal. Confirm advance and composition cases with your CA.
Questions
What is a proforma invoice?
A proforma invoice is a confirmed price document sent to a buyer before the goods or services are supplied, usually to collect an advance, for the buyer's internal purchase approval, or for a bank or import process. It looks like an invoice and shows GST, but it is not a tax invoice under the CGST Act.
Is a proforma invoice valid under GST?
It is a commercial document, not a GST document. GST law prescribes the contents of a tax invoice (Rule 46), bill of supply (Rule 49), receipt voucher for advances (Rule 50), credit and debit notes (Rule 53) and delivery challan (Rule 55). A proforma is none of these, so it is not reported in GSTR-1 and the buyer cannot claim input tax credit on it.
Do I pay GST when I receive an advance against a proforma?
For goods, a regular registered supplier does not: Notification 66/2017-Central Tax (15 November 2017) makes registered persons other than composition dealers pay GST on goods at the time of supply under Section 12(2)(a), so tax is paid on the invoice, not on the advance. For services, GST is due when the advance is received, under Section 13. In both cases Section 31(3)(d) asks for a receipt voucher (contents in Rule 50) when an advance comes in. Check your case with your CA.
When should I convert a proforma into a tax invoice?
At the time of supply. Section 31(1) says a tax invoice for goods is issued before or at the time of removal or delivery. Use a new number from your tax invoice series; do not reuse the proforma number.
Can the buyer claim input tax credit on a proforma invoice?
No. Section 16(2) of the CGST Act ties input tax credit to possession of a tax invoice or debit note issued by a registered supplier, plus receipt of the goods or services. A proforma does not qualify.
Should a proforma invoice have its own number series?
Yes. Keep it separate (for example PI/26-27/001) so it never takes a number from your tax invoice series. Rule 46 asks for tax invoice numbers to be consecutive and unique for the financial year.
Is my proforma saved anywhere?
Only in this browser's local storage, separately from your invoices and quotations. Nothing is sent to our server. Delete saved data wipes it.
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