Free Proforma Invoice Generator

Proforma invoice or tax invoice?

A proforma sets out what an order will cost. It carries no tax liability, it goes into no GST return, and the buyer cannot claim input tax credit on it. A tax invoice comes later, at the time of supply, and that document carries the legal weight.

Because of this, the proforma made here prints the heading “Proforma Invoice” and a footer line saying a tax invoice will follow. Keep a different number series, such as PI-001, so proformas never mix with your tax invoice numbers.

When businesses send one

The most common reason is to collect an advance. A buyer’s accounts team often needs a document with your bank details and an exact amount before it releases money, and a proforma gives them that.

Exporters and importers use proformas for letters of credit, import licences and foreign exchange paperwork. Government and corporate buyers may ask for one to raise an internal purchase approval. Some sellers also send one when stock is booked but not yet dispatched, so the buyer knows the final bill in advance.

Showing GST on a proforma

Show the GST you expect to charge so the buyer sees the full outlay. The rate choices follow GST 2.0, which removed the 12% and 28% slabs from 22 September 2025, and each line can take its own rate.

If the tax rate or place of supply changes before delivery, the tax invoice must use the figures that apply on the day of supply, not those on the proforma. An advance received for services can create GST liability when it arrives, and the law expects a receipt voucher for it; check the treatment with your CA.

Keeping proformas under control

Once proformas pile up, it becomes hard to see which ones turned into orders, which advances arrived and which tax invoices are still due. An ERP links each proforma to its payment and final invoice so nothing falls through. Our ERP development service covers that flow.