Quotation Template (India)

Under the Indian Contract Act 1872, a quotation (also called an offer or tender) is generally an 'invitation to treat' or a firm offer depending on how it is framed, and the legal analysis determines whether it constitutes a binding contract when accepted. If the quotation is framed as a firm offer — stating a specific price, a defined validity period, and clear terms — acceptance of the quotation by the buyer (by signing and returning the quotation, issuing a purchase order referencing the quotation, or commencing performance) creates a binding contract under Section 4 of the Contract Act. The acceptance must be absolute and unqualified under Section 7 of the Contract Act — if the buyer accepts the quotation but alters terms (different quantity, changed price, different delivery date), this constitutes a counter-offer and the original quotation lapses. If the quotation has a validity period and the buyer accepts within that period, the contract is formed on the original quoted terms. If the buyer accepts after the validity period expires, acceptance is ineffective unless the seller confirms the extended validity. For GST purposes, a quotation is not a prescribed document under the CGST Act 2017 — it is a pre-supply commercial document and does not trigger GST liability. GST becomes payable when the tax invoice is issued at the time of supply. The quotation should clearly state that the quoted prices are subject to applicable GST at the rates specified, to avoid disputes when the tax invoice is issued with GST added to the quoted price.

While a quotation is not a tax document under the CGST Act 2017, including accurate GST information in the quotation prevents disputes and facilitates the buyer's procurement approval process. The quotation should state: the seller's GSTIN (enabling the buyer to verify the seller's registration on the GST portal and confirm the tax rate applicable to the supply); the HSN code (for goods) or SAC code (for services) applicable to the quoted items, as the GST rate is determined by the HSN/SAC classification; whether the supply is intra-state (attracting CGST and SGST) or inter-state (attracting IGST) based on the seller's and buyer's state of registration — this determines the applicable tax type; the GST rate applicable to each item (0%, 5%, 12%, 18%, or 28%, or exempt); the quoted price exclusive of GST (base price); the calculated GST amount (CGST + SGST or IGST); and the total amount inclusive of GST. Including a clear statement such as 'Prices are exclusive of GST, which will be charged at the applicable rate as per the CGST Act 2017' is standard commercial practice. For reverse charge mechanism (RCM) supplies under Section 9(3) or 9(4) of the CGST Act, the quotation should note that the supply is subject to RCM and the buyer will be responsible for self-assessment and payment of GST. For composition scheme suppliers, the quotation should note that the supplier is registered under the composition scheme and GST is not charged separately — the buyer cannot claim ITC on such purchases.

A quotation and a proforma invoice serve similar commercial purposes in India — both communicate a seller's proposed price and terms for goods or services — but there are important distinctions in their usage, format, and legal implications. A quotation is typically the seller's first formal response to an inquiry or tender by the buyer, stating the price, terms, and validity period. It is an offer that requires the buyer's acceptance to create a contract. Quotations are common in B2B commercial transactions, government tenders, and competitive procurement processes where multiple suppliers are invited to submit their prices. A proforma invoice, while also a pre-supply document, is structurally formatted like an invoice and is used in more advanced stages of a transaction — often when the parties have already agreed in principle and the proforma invoice is being issued to enable the buyer to make an advance payment, open a Letter of Credit, or obtain import/export approvals from regulatory authorities. For RBI and AD bank purposes under FEMA 1999, a proforma invoice (rather than a quotation) is the accepted format for authorising advance remittances in import transactions. Customs authorities in India and abroad typically require a proforma invoice (not a quotation) for customs valuation and import licence purposes. In practical terms: a buyer receives a quotation, compares it with other quotations, and if satisfied, issues a purchase order or asks the seller to convert the quotation into a proforma invoice.

A Quotation Template (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Negotiable Instruments Act, 1881 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.

A Quotation Template (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Negotiable Instruments Act, 1881, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.