Proforma Invoice Format and When to Use One

A proforma invoice is a preliminary bill you send before the actual sale or service, showing what the buyer will be charged so they can approve it, arrange payment or pay an advance. It is not a tax invoice — it doesn't record a supply for GST, and it doesn't go on your EDF — but a well-laid-out proforma makes the real invoice, and the payment, much smoother.

Key takeaways

• Use a proforma to request an advance, to get internal approval at the client's end, or to set out final terms before work starts.
• It should look like an invoice but be clearly titled "Proforma Invoice" and numbered in a separate series.
• For exports, the tax invoice (not the proforma) is what goes in Part 2B of the EDF.
• Once the supply happens, issue a proper tax invoice that matches or explains any difference from the proforma.

When a proforma invoice makes sense

If none of these applies — you've done the work and want to be paid — skip the proforma and issue a tax invoice. A quotation is the right document even earlier, when the client is still deciding.

What a proforma invoice should include

There is no single mandated layout, but a professional proforma mirrors your tax invoice closely so the client sees no surprises later.

• Title: "Proforma Invoice", prominently. This prevents it being mistaken for a tax invoice.
• Your details: business name, address, GSTIN, PAN, contact.
• Client details: name, billing address (overseas address for foreign clients), tax ID if they want it shown.
• Proforma number and date: from a separate series, e.g. PI/26-27/014.
• Validity: how long the prices hold — "Valid for 30 days".
• Line items: description, quantity or hours, rate, amount; SAC code for services.
• Taxes: the GST that would apply on the final invoice; for exports under LUT, a note that the final invoice will be issued under LUT without IGST.
• Total: in figures and in words.
• Payment terms and bank details: advance percentage, due date, account details including SWIFT for foreign clients.
• A note: "This is a proforma invoice and not a tax invoice. A tax invoice will be issued on supply."

Our proforma invoice generator lays these out and calculates totals for you.

Proforma invoices and foreign clients

For service exporters, the proforma's main job is getting paid upfront. A foreign client's accounts team often won't send money without a document that looks like a bill.

Here is how the paperwork flows when you take an advance:

1. Proforma invoice — sent to the client, requesting, say, 30% advance.
2. Advance arrives — your bank credits it and issues a FIRA or advice. You may issue an advance receipt; ask your CA about the GST side.
3. Work is delivered.
4. Tax invoice / export invoice — raised for the full value, showing the advance already received.
5. EDF — the tax invoice goes in Part 2B of the EDF for the month it's dated, due 30 days from the end of that month.

The proforma itself never appears on the EDF. The EDF records your export invoices; the proforma is just the request that came before.

Worked example

Sundial Learning Pvt Ltd, an e-learning studio in Bhubaneswar, agrees to build a compliance-training course for a company in Toronto for CAD 18,000, with 40% upfront.

Proforma invoice PI/26-27/022, dated 2 November 2026:

Note on the proforma: "Final tax invoice will be issued under LUT without payment of IGST."

The client pays CAD 7,200 on 9 November. Sundial delivers on 20 December and raises export invoice SL/26-27/119 for CAD 18,000, showing the advance received and CAD 10,800 due. That invoice — not the proforma — goes on the December EDF, due 30 January 2027.

Proforma vs tax invoice at a glance

Our article on proforma vs tax invoices goes deeper into the differences.

Mistakes to avoid

• Using your tax invoice series for proformas. It leaves gaps when proformas don't convert. Keep the series separate.
• Forgetting the "not a tax invoice" note. Some clients book proformas as bills by mistake.
• Letting it go stale. Prices, exchange rates and scope change. Add a validity date.
• Never issuing the tax invoice. After an advance, it's easy to forget. Without a tax invoice, your GST records and EDF are incomplete.
• Different figures on the proforma and tax invoice with no explanation. If scope changes, say so on the tax invoice.

This is general information, not legal or tax advice. Ask your CA about GST treatment of advances specific to your business.

Frequently asked questions

Is a proforma invoice legally required?

No. It's a commercial document, used when it helps — to secure an advance, support the client's approval, or confirm terms. A tax invoice is what GST law requires once the supply is made.

Can I receive payment against a proforma invoice?

Yes, many businesses take advances against a proforma. When the supply is made, issue a tax invoice that shows the advance already received. Your CA can advise on any GST documentation needed for the advance itself.

Does a proforma invoice go on the EDF?

No. The EDF lists your export invoices. The proforma is a preliminary document; the tax invoice issued later is the one that goes in Part 2B.

Should a proforma invoice show GST?

It's helpful to show the GST that would apply on the final invoice, so the client knows the total. For exports under LUT, state that the final invoice will be issued under LUT without IGST.

How long is a proforma invoice valid?

As long as you say it is. Put a validity period on it, such as 15 or 30 days, especially if prices or exchange rates might move.

Bottom line

Send a proforma when you need an advance or the client needs approval, then issue a proper tax or export invoice when you deliver. Build a clean one in a minute with the free proforma invoice generator, and use the export invoice tool for the final bill.