Quotation format

Where a quotation fits

A buyer asks for rates. You send a quotation. If they agree, they send a purchase order or confirm on call, you raise a sales order or proforma invoice, and when the goods go out you issue the tax invoice. The quotation is the first paper in that chain, and the rate on it is what the buyer will hold you to.

Contractors, distributors quoting a new dealer, electrical and hardware suppliers bidding for a project, and service firms all use them daily. A quick, clear quotation often decides who gets the order.

Sample quotation format

The sample uses made-up details. Switch between the Classic, Modern and Compact layouts, Print / PDF it on A4, or print a Blank template to fill by hand. Open in editor loads it into the free quotation maker, where you type straight onto the page and GST, totals and the amount in words are worked out for you.

What to put on it

• Business name, address, GSTIN and contact
• Quotation number and date
• Customer name, contact person and state
• Enquiry or project reference
• Item description, brand/model and HSN
• Quantity, unit, rate and discount
• GST rate and amount
• Freight, packing and installation charges
• Grand total
• Validity period
• Delivery period
• Payment terms
• Signature and name of the person quoting

What a good quotation contains

No law sets a quotation format, so the fields below are good practice:

• Your letterhead with GSTIN, and a quotation number and date.
• The buyer's name, contact person and, if known, GSTIN and state.
• A reference: their enquiry date, tender number or site name.
• Item lines with description, make or brand, HSN, quantity, unit, rate and discount.
• GST shown separately per line or per rate, so the buyer sees the landed cost.
• Validity: "Rates valid for 15 days" protects you from price changes.
• Delivery period, freight (included or extra), installation, warranty.
• Payment terms: advance, credit days, mode of payment.

Worked example

A Ludhiana hardware supplier quotes a builder in Chandigarh for 200 bags of tile adhesive at ₹420 and 50 litres of waterproofing at ₹310.

Chandigarh is a union territory, separate from Punjab, so the supply is inter-state and the quotation shows IGST. Getting this right at the quotation stage avoids a surprised buyer later. Check the tax rate for each item before quoting; rates are notified and can change.

Tips that win orders

• Send it the same day, as a PDF, on the channel the buyer used to ask.
• Quote the exact model or grade asked for, and offer one alternative separately rather than mixing them.
• Round the grand total only at the end, not each line.
• Number your quotations (QT/26-27/052) so you can follow up: "about our quotation 52 of 3 October".
• Revise as R1, R2 rather than issuing a fresh number, so the history is clear.

For more ideas, see quotation best practices.

Following up on a quotation

Most quotations that are lost are simply never chased. Keep a short list of open quotations with the date sent, value and next follow-up date. Call or message on day three to ask whether anything needs changing, and again just before the validity ends. When a quotation is lost, note the reason, such as price, delivery time or brand. After a few months the notes show where you lose orders, which is more useful than any single sale.

Quotation, estimate or proforma?

A quotation is a firm offer at stated rates. An estimate is an approximate cost, common in repair and contract work, where the final bill can differ. A proforma invoice looks like an invoice and is often sent once the order is agreed, to collect an advance. None of the three is a tax invoice, and none is entered in GST returns.

In TallyPrime, a quotation is not an accounting entry. Once accepted it usually becomes a Sales Order voucher, which later converts into the sales invoice.