A quotation (or quote) is a formal document sent by a seller to a potential buyer stating the prices for goods or services. It's a pre-sale document — once accepted by the buyer, it can be converted into a proforma invoice or sales order.

What's the difference between a quotation and an invoice?

A quotation is an offer/estimate sent before a sale — it's negotiable and non-binding. An invoice is issued after a sale or delivery of goods/services — it's a demand for payment and has legal/tax implications under GST.

Should quotations include GST?

Yes, it's good practice to show GST separately on quotations so the buyer knows the total cost including tax. Mention whether the prices are inclusive or exclusive of GST. For B2B customers, showing the GST breakup helps them calculate their ITC.

How long should a quotation be valid?

Typically 15–30 days, but it depends on your industry and market conditions. For volatile markets (e.g., metals, fuel), shorter validity (7 days) is common. Always clearly state the validity period to avoid disputes.

Can a quotation be converted to an invoice?

Yes — once the customer accepts the quotation, you can convert it into a proforma invoice or directly into a tax invoice. Billing software like myBillPlease allows one-click conversion from quotation to invoice, carrying over all details.

Is a quotation legally binding?

A quotation by itself is generally not legally binding — it's an offer. However, once the buyer accepts it (in writing or by placing an order), it can form part of a contractual agreement. Include clear terms and conditions to protect your interests.

Free Quotation Format

Create professional quotations with proper format — choose from 8 beautiful templates.

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Key Components of a Quotation

A proper quotation should include these essential sections.

1. Header Section

Business identity and quotation metadata

Company name and logoGSTINAddress and contact detailsQuotation number and dateReference number (if any)

2. Client Details

Prospective customer information

Client name and companyContact personAddressEmail and phoneGSTIN (if applicable)

3. Items / Services Table

Detailed pricing breakdown

Item/service descriptionHSN/SAC codeQuantity and unitRate per unitDiscount (if any)AmountGST rate

4. Terms & Conditions

Commercial and payment terms

Payment terms (advance %, due date)Delivery timelineWarranty/guarantee termsCancellation policyAdditional charges

5. Validity & Terms

Offer expiration and conditions

Quotation valid until (date)Validity periodCancellation/revision policy

6. Authorization

Sign-off and acceptance

Authorized signatoryCompany stamp/sealNotes/remarks

How to Create a Quotation

Get your quotation ready in under 2 minutes.

Choose a Template

Pick from our professionally designed quotation templates

Add Your Business Details

Enter company name, GSTIN, address, and logo

Fill in Items & Tax

Add line items with HSN codes, quantities, and GST rates

Download & Share

Export as PDF, print, or share via WhatsApp/email

When to Use a Quotation

When a potential customer requests pricing for your products or services
Before issuing a proforma invoice — quotations are the first step in the sales cycle
For tender or bid submissions where formal pricing documentation is required
When comparing pricing with competitors — a professional format builds trust
For recording negotiations and agreed-upon terms before finalizing a deal

Why Use a Professional Quotation Format

Stand out with documents that build trust and ensure compliance.

GST Compliant

All mandatory fields per GST Rules included

Professional Look

Impress clients with polished, branded documents

Save Time

Pre-designed templates, just fill and send

Error-Free

Auto-calculated totals, no manual mistakes

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No hidden charges, no signup for basic use

Print & Share

Download PDF, print, or share via WhatsApp & email

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Creating Professional Quotations

A well-structured quotation format is your first impression on potential customers. It should clearly communicate your pricing, terms, and professionalism. A good quotation increases your chances of winning the deal.

Best Practices for Quotations

Be specific: Break down pricing by line item — avoid lump-sum quotes
Include GST: Show tax separately so B2B customers can calculate ITC
Set validity: Always mention how long the quote is valid
Terms upfront: Include payment terms, delivery timeline, and warranty
Professional branding: Use your logo, consistent colors, and clean layout

Quotation Workflow

Receive inquiry from potential customer
Prepare quotation with detailed pricing and terms
Send quotation and follow up
Negotiate if needed — revise and resend
Customer accepts → Convert to proforma invoice or sales order
Deliver goods/services → Issue tax invoice

Frequently Asked Questions

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Quotation Format Free Download — GST Quotation Template PDF Excel | myBillPlease