A good quotation format answers three questions before the client asks them: what exactly you will do, what it will cost including taxes, and how long the price holds. Clear scope, a validity date and payment terms do more to win the job than a low number, because they tell the client you have done this before. Everything else on the page (logo, numbering, bank details) supports that.
Key takeaways
- Every quotation needs your details, the client's details, a quote number and date, an itemised scope, prices, taxes, validity and payment terms.
- Write scope as deliverables, not effort. "Five-page website with CMS" beats "web development".
- State taxes plainly. For domestic clients show GST; for foreign clients, show the currency and note that GST treatment depends on export conditions.
- A quotation is an offer, not a demand for payment. If the client needs a document to pay an advance against, send a proforma invoice.
- Number your quotations and keep them; they become the reference for your invoice and, for exports, your contract details.
The fields a professional quotation includes
| Section | What to include | Why it matters |
|---|---|---|
| Header | Business name, logo, address, GSTIN (if registered), contact | Identifies you; GSTIN reassures domestic business clients |
| Quote details | Quotation number, date, validity date | Lets both sides refer to one version |
| Client details | Legal name, address, contact person; country for foreign clients | Becomes the "bill to" on the invoice later |
| Scope | Itemised deliverables, quantities, assumptions, exclusions | Prevents scope creep and disputes |
| Pricing | Unit rate, quantity, line amounts, subtotal | Easy to compare and approve |
| Taxes | GST rate and amount for domestic; treatment note for exports | No surprises on the invoice |
| Total | In figures and words | Removes ambiguity |
| Terms | Payment schedule, advance, timelines, revisions, cancellation | Sets expectations |
| Acceptance | Signature block or "reply to accept" line | Turns the quote into an agreement |
The free quotation maker lays these out for you and calculates totals and taxes.
Writing scope that protects you
Most quotation disputes start with vague scope. Compare:
- Weak: "Logo design – ₹25,000"
- Strong: "Logo design: three initial concepts, two rounds of revisions on one chosen concept, final files in SVG, PNG and PDF, basic usage guide – ₹25,000. Excludes stationery design and trademark search."
The strong version lists the deliverables, the number of revisions and what is excluded. When the client asks for a fourth concept, you can point to the quote and price it separately.
Add a short assumptions list: content supplied by client, feedback within five working days, one point of contact. Assumptions explain why a timeline slips without anyone arguing about it.
Validity and pricing terms
Always state how long the price holds: "Valid for 30 days from the date of this quotation" is common. Without a validity date, a client might accept a year-old quote at last year's rates.
Payment terms belong on the quotation, not just the invoice. A typical structure for project work:
| Stage | Share | Trigger |
|---|---|---|
| Advance | 40% | On acceptance |
| Milestone | 40% | On delivery of first draft or phase |
| Balance | 20% | On final delivery |
For retainers, state the monthly fee, what it covers, the billing date and notice period.
Taxes on domestic and foreign quotations
Domestic clients. If you are GST-registered, show the GST rate and amount separately, or state clearly that prices are exclusive of GST. Business clients want to know the input tax they can claim. If you are not registered, do not show GST.
Foreign clients. Quote in the currency you intend to invoice in (USD, EUR, GBP and so on) and say so. Exports of services can be zero-rated under GST when all the export conditions are met, typically under an LUT. A quotation is not the place to promise tax outcomes, so a neutral line works: "Prices are in USD. Applicable Indian taxes, if any, will be shown on the invoice." When you invoice, the export invoice generator adds LUT wording if it applies.
For foreign work, the accepted quote often serves as the contract. Its number and date can then be quoted in the contract column of your EDF.
A worked example
Lotus Lane Studio, a proprietorship in Bhopal, is quoting for a UK café chain's brand refresh.
Quotation LLS/Q/26-27/018, dated 12 October 2026, valid until 11 November 2026
| Item | Deliverable | Qty | Rate (GBP) | Amount (GBP) |
|---|---|---|---|---|
| 1 | Brand discovery workshop (online, 2 hours) and summary | 1 | 300 | 300 |
| 2 | Logo refresh: 3 concepts, 2 revision rounds | 1 | 1,200 | 1,200 |
| 3 | Menu template design (A4 and A5) | 2 | 250 | 500 |
| 4 | Social media template pack (10 templates) | 1 | 450 | 450 |
| Total | 2,450 |
Total in words: Pounds Sterling Two Thousand Four Hundred Fifty Only.
Terms: 40% advance on acceptance, 60% on final delivery; delivery within five weeks of the workshop; prices in GBP; applicable Indian taxes, if any, shown on the invoice; printing and stock photography excluded.
The client accepts by email. Lotus Lane sends a proforma invoice for the 40% advance, then tax invoices as work is delivered.
Quotation, estimate or proforma?
| Document | Purpose | Binding? |
|---|---|---|
| Estimate | A rough cost range for planning | Usually not |
| Quotation | A firm offer for defined scope | Binding once accepted, within validity |
| Proforma invoice | A request for advance payment, before a tax invoice | Not a tax invoice |
| Tax invoice | The actual bill once supply happens | Yes |
Our article on quotation vs estimate vs proforma explains when to send each.
Small habits that make you look established
- Use a numbering series (for example LLS/Q/26-27/018) and never reuse numbers.
- Put the client's legal entity name, not just a contact's first name.
- Send as a PDF, not an editable file.
- Follow up three or four working days after sending, and again before validity ends.
- Keep a log of quotes sent, accepted and lost. It tells you what to charge.
This is general information, not legal or tax advice.
Frequently asked questions
What should a quotation format include?
Your details, the client's details, a quotation number and date, a validity date, itemised scope, prices, taxes, total in figures and words, payment terms and an acceptance line. Clear exclusions and assumptions prevent most disputes.
Is a quotation legally binding?
A quotation is an offer. Once the client accepts it within the validity period, it generally forms an agreement on those terms. If you need certainty, ask for written acceptance or a signed copy.
Should I add GST to a quotation?
If you are GST-registered and quoting a domestic client, show GST separately or state that prices exclude it. For foreign clients, quote in the invoice currency and note that applicable taxes, if any, will appear on the invoice.
How long should a quotation be valid?
Thirty days is common, but choose what suits your costs. For volatile pricing or long sales cycles, a shorter validity protects you. Always write the validity date on the quote.
Can a quotation be used to collect an advance?
It is better to send a proforma invoice for the advance, referencing the accepted quotation. The proforma is a payment request; the quotation is the offer.
Bottom line
A professional quotation is specific about scope, honest about taxes and clear about how long the price holds. Get those right and you win more work at better rates. Build one in minutes with the free quotation maker.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.