Quotation format

A quotation (or estimate) tells a customer what you will supply, at what price and on what terms, before they commit. It creates no sale and no tax liability. If the customer accepts, you make the tax invoice later, usually from the same lines.

Since GST law does not cover quotations, you are free to choose the layout. What matters is that the customer sees the full cost, including GST, and how long the price holds.

A good quotation answers the questions a buyer would otherwise phone you about: exact specification or brand, what is included (delivery, installation, freight), how long the price holds, how much advance you need and when the goods will reach them. Number your quotations in their own series so you can track which ones turned into orders.

When to use it

• A customer asks for prices before ordering: furniture, building material, printing, repairs, bulk orders.
• You bid for a contract or reply to a request for quotation.
• Prices change often and you want a written validity date.
• You want to turn the accepted offer into an invoice without typing it again.

A quotation is not a document under the CGST Act or Rules: no invoice number series, no reporting in GSTR-1 and no tax becomes due when you send it. Tax is due only when you supply the goods or services and issue the tax invoice.

Still, show the GST rate and amount on the quotation. If the buyer is registered, the GSTIN on both sides helps them check whether CGST+SGST or IGST will apply. Under the Indian Contract Act, an accepted offer can become a binding contract, so state the validity, delivery and payment terms you mean.