A builder calls your shop and asks for "rate de dijiye" for tiles, pipes and fittings for a three-floor house. A school wants a price for 40 benches. A hospital asks three suppliers for their best offer on cleaning material. In each case the customer is waiting for one thing: a clear written price. A good quotation format can be the difference between winning that order and being ignored, because the customer is usually comparing your quote with two or three others on the same evening.
This guide explains what a quotation is, which fields it must have, a sample quotation you can copy, how a quotation differs from an invoice, and practical tips that help small Indian businesses convert more quotes into confirmed orders.
What is a quotation?
A quotation (also called a quote, estimate or rate list for a specific job) is a document a seller sends to a potential buyer listing the goods or services, quantities, prices, taxes and terms on which the seller is willing to supply. It is an offer, not a demand for payment. Once the customer accepts it, usually by giving a purchase order, a written confirmation or an advance, the deal moves forward and you later issue a tax invoice.
In everyday Indian business, people use "quotation" and "estimate" loosely. A common practical difference is that a quotation is usually treated as a firm price for a set period, while an estimate is an approximate figure that may change once the actual work or quantity is known. Whatever you call it, say clearly on the document whether the prices are fixed or approximate.
Essential fields in a quotation format
A professional quotation does not need to be fancy, but it should answer every question the buyer might have. Include:
- Your business details: name, address, phone, email and GSTIN if registered.
- Title: the word "Quotation" or "Estimate" at the top, so it is never confused with a bill.
- Quotation number and date: a running number such as QT-2026-045 helps both sides refer to it later.
- Customer details: name, company, address, contact person and GSTIN if available.
- Subject or reference: for example, "Supply of plumbing material for site at Kankarbagh".
- Item table: description, brand or specification, HSN/SAC, quantity, unit, rate, discount, GST rate and amount.
- Totals: subtotal, GST amount (CGST/SGST or IGST), any freight or installation charges, and grand total.
- Validity: how long the prices hold, such as 7, 15 or 30 days.
- Terms: payment terms, advance required, delivery time, delivery location, warranty, and what is not included.
- Signature and contact: the name of the person the customer should call.
Sample quotation format
Below is a simple layout for a hardware and sanitary shop quoting to a contractor. The prices are only an example.
| # | Item and specification | Qty | Unit | Rate (₹) | GST | Amount (₹) |
|---|---|---|---|---|---|---|
| 1 | CPVC pipe 1 inch, 3 m length | 40 | Pcs | 420 | 18% | 16,800 |
| 2 | Brass ball valve 1 inch | 12 | Pcs | 650 | 18% | 7,800 |
| 3 | Wall-mounted WC with seat cover | 6 | Set | 5,200 | 18% | 31,200 |
| Subtotal | 55,800 | |||||
| CGST + SGST | 10,044 | |||||
| Grand total | 65,844 |
Below the table, add lines such as: "Prices valid for 15 days. 30% advance with order, balance on delivery. Delivery within 5 working days to site. Loading and unloading extra." Always check the correct GST rate and HSN for each item; you can look them up on this GST rates page or confirm with your CA.
Quotation vs invoice: the key differences
| Point | Quotation | Tax invoice |
|---|---|---|
| When issued | Before the sale, to offer a price | When the supply is made, as per GST rules |
| Purpose | To win the order | To record the sale and charge tax |
| Legal status under GST | Not a GST document | Required document; reported in GST returns |
| Payment | No payment due yet | Payment due as per terms |
| Input tax credit | Buyer cannot claim ITC on it | Registered buyer can claim ITC, subject to rules |
| Numbering | Your own quote series | Unique, consecutive invoice series |
Keep your quotation numbers separate from your invoice numbers. Mixing them creates gaps in your invoice series and confusion during GST filing.
Step-by-step: how to make a quotation
- Understand the requirement. Ask for quantities, brands, sizes, delivery location and the date by which material is needed.
- Check stock and purchase cost. Do not quote a price you cannot sustain if your supplier raises rates next week.
- Fill in the item table carefully. Write specifications clearly so the customer can compare like with like.
- Add GST correctly. Show the tax separately so the buyer sees the real landed cost.
- Write the terms. Validity, advance, delivery, warranty and exclusions.
- Send it quickly. A PDF on WhatsApp the same day often beats a better price sent three days later.
- Follow up. Call after a day or two, answer questions and offer options.
- Convert to an invoice once accepted, without retyping everything.
Tips to win more orders with your quotations
- Be specific about brands and grades. "Pipe" means nothing; "CPVC pipe, 1 inch, SDR 11" is comparable.
- Offer two options where sensible. A premium brand and a value brand let the customer choose without going elsewhere.
- Show what is included. If your price includes delivery or installation, say so; it may justify a higher rate.
- Keep it clean and branded. A neat PDF with your logo and GSTIN looks more trustworthy than a photo of a handwritten page.
- Mention a short validity. It creates gentle urgency and protects you from price changes.
- Track every quote. Note which quotes converted and which did not, and why. Over time you will learn your real competitive price.
How MaterialBill helps you bill once the order is confirmed
Many shopkeepers still type quotations in Word or Excel. That is fine for the offer stage, but the real work starts when the customer says yes. The MaterialBill GST billing app helps you handle what comes after a quotation is accepted:
- Create GST invoices with CGST/SGST/IGST calculated automatically, or bills of supply if you are a composition dealer.
- Keep your product list with prices and HSN codes, or import it from Excel or CSV, so item details are not retyped every time.
- Share invoices instantly on WhatsApp, SMS, email or as a PDF.
- Track dues and advances with udhaar khata, and send payment reminders on WhatsApp or SMS.
- Check stock in real time before you promise quantities in your next quote.
See the full list on the features page. At the time of writing, the free plan allows 30 GST bills a month with no credit card needed.
FAQs
Is a quotation legally binding?
A quotation is an offer. Once the buyer accepts it within the validity period and on the stated terms, it can form the basis of an agreement. For large orders, get a written purchase order or confirmation to avoid disputes.
Should I show GST in a quotation?
Yes. Showing GST separately tells the buyer the real total cost and avoids arguments later about whether the price was inclusive or exclusive of tax.
Is GST payable when I send a quotation?
No. A quotation is not a supply. GST becomes relevant when the supply is made or, in some cases, when an advance is received for services. Ask your CA about advances in your business.
What is the difference between a quotation and a proforma invoice?
A quotation is sent to win the order. A proforma invoice is usually sent after the buyer agrees in principle, often to arrange payment or an advance. Neither is a tax invoice.
How long should a quotation be valid?
Most small businesses use 7 to 30 days. Choose a shorter period for items with volatile prices such as steel or copper.
Conclusion
A clear quotation format with correct items, GST, validity and terms makes you look professional and helps customers decide faster. Once the order is in, move to proper GST invoicing and dues tracking without paperwork. Start free with MaterialBill, and if you need help, call or WhatsApp +91 98359 42411.
