What is Quotation?
A quotation is your formal answer to the question "How much will this cost?" It sets out what you will deliver, at what price, in which currency, with what taxes, for how long the offer stands and on what payment terms. A good quotation leaves little room for argument later, because both sides can point to the same document when the invoice arrives.
A quotation has no tax or regulatory status of its own. It does not create a GST liability, and it is not reported anywhere. Its value is commercial: it shapes the contract and the invoices that follow.
Why it matters for exporters
For foreign clients, the quotation is where you fix the details that later flow into your compliance papers. State the currency clearly (USD, EUR, GBP or INR), because the EDF records the currency and amount of each invoice. Say who bears bank charges, since deductions abroad affect the amount you finally realise. Mention payment timing, because services exports must be realised within 9 months from the invoice date. If the client signs the quotation or issues a purchase order against it, note that reference: the EDF's Part 2B has a column for contract number and date.
Example
Lotus Localisation Pvt Ltd quotes a Paris publisher EUR 4,800 for translating a training manual into Hindi and Tamil, valid for 30 days, 50 percent advance and the balance on delivery, with bank charges on the sender's side. The publisher accepts and returns the signed quotation, reference Q-2026-112. Lotus later uses Q-2026-112 and its date in the contract column when it fills the EDF form. The quotation itself was made with the free quotation tool.
Common confusion
A quotation, an estimate and a proforma invoice are often used interchangeably. An estimate is approximate, a quotation is a firm offer and a proforma is usually sent once terms are agreed. See quotation vs estimate vs proforma.