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Quotation format

A quotation states the price at which you will supply goods or services, and Indian buyers expect it to show GST the same way the tax invoice will. Fill in the quotation below; when the purchase order arrives, raise the tax invoice with the same lines.

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Quotation format · example

FromSahyadri Steel Fabricators
ToKonkan Logistics Pvt Ltd
CurrencyINR
DescriptionQtyPriceAmount
Heavy-duty steel storage rack, 5 shelves, 2000 x 900 x 450 mm (HSN 9403)40₹6,250.00₹2,50,000.00
Freight to Bhiwandi warehouse1₹8,000.00₹8,000.00
Total₹3,04,440.00

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How to use the quotation format

  1. Add your business name, address and GSTIN.
  2. Add the buyer, with their GSTIN if they are registered.
  3. List items with HSN or SAC, rate and GST, and state the delivery period.
  4. Set validity and payment terms, then save and send.

Quotation format: what to include

SectionDetails
HeaderThe word "Quotation", quotation number and date
SellerBusiness name, address, GSTIN, phone and email
BuyerName, address, GSTIN if registered, contact person
ItemsDescription, HSN or SAC, quantity, unit, rate, discount, taxable value
TaxGST rate per item: CGST and SGST within the state, IGST across states
TotalsTaxable value, GST and grand total
TermsValidity, delivery period, freight, payment terms, warranty

Commercial terms Indian buyers expect

  • Validity: 15 or 30 days
  • Payment: 50% advance with the purchase order and the balance before dispatch, or 30 days' credit for established buyers
  • Delivery: a stated number of days from the purchase order and advance
  • Freight: ex-works, FOR destination, or extra at actuals
  • Taxes: GST at the rate in force on the date of invoice
  • Warranty: the period and what it covers

Worked example

A Pune fabricator quotes 40 steel storage racks at ₹6,250 each for a warehouse in Bhiwandi, with ₹8,000 freight. Freight charged with the goods is part of a composite supply and takes the goods' 18% rate. Both parties are in Maharashtra, so on a taxable value of ₹2,58,000 the quotation shows CGST ₹23,220 and SGST ₹23,220, a total of ₹3,04,440.

Questions

Is GST charged on a quotation?

No tax is payable on a quotation; it is only an offer. Show the GST that will apply so the buyer sees the full cost. GST becomes payable when you issue the tax invoice.

Is a quotation legally binding in India?

Once the buyer accepts it, usually by issuing a purchase order, it forms a contract under the Indian Contract Act on the quoted terms. State validity and exclusions clearly.

What is the difference between a quotation and a proforma invoice?

A quotation is an offer made before the order. A proforma invoice usually follows the order and asks for an advance or supports an import or bank process.

Should I quote rates inclusive or exclusive of GST?

For business buyers, quote exclusive of GST with the rate shown, since they claim input tax credit. For consumers, give the inclusive price as well.

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