Quotation › GST on a quotation

GST on a quotation

A quotation is not a tax document, so sending one does not make any GST payable. But the customer will pay GST on the invoice, so a quotation that shows the tax tells them the real cost.

Is GST charged on a quotation?

No. GST becomes payable when the supply happens: generally when you issue the tax invoice, or receive payment for it, whichever comes first (the exact time of supply rules differ for goods and services). A quotation only offers a price. It is not reported in your GST returns, and the customer cannot claim input tax credit on it.

Should I show GST on my quotation?

• You are GST-registered (regular scheme): yes, show it. Keep Show GST on this document ticked. Each line shows its GST rate, the totals show CGST + SGST or IGST, and the customer sees the exact amount they will pay. Business customers who claim input tax credit will also want to see your GSTIN.
• You are not registered: untick Show GST. You cannot charge GST without a GSTIN. Your price is the final price.
• You are in the composition scheme: untick Show GST. A composition dealer cannot collect tax from the customer, so quote one inclusive price. The invoice will be a bill of supply.
• The goods or services are exempt: show them at 0%, or untick Show GST if nothing on the quotation is taxable.

CGST + SGST or IGST?

The same rule as on an invoice. Compare your state with the place of supply (usually the customer's state):

• Same state: CGST + SGST, half each (UTGST instead of SGST in Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar, and Dadra and Nagar Haveli and Daman and Diu).
• Different states: IGST at the full rate.

The quotation maker picks the right one from the states you choose. For the full rule and the special cases (work on property, events, goods shipped to a third party), read CGST, SGST or IGST? on the billing site.

What if the GST rate changes?

The rate that applies is the one in force at the time of supply, not on the date of your quotation. If rates change before you invoice, the invoice must use the new rate. That is why many businesses add the line "GST at the rate applicable on the date of invoice" to their terms. The GST Council revised many rates in 2025, so check current rates on the official CBIC rate list before quoting.

Prices "inclusive of GST"

For shop customers who think in final prices, you may prefer to quote one figure. You can work back the price before tax: price before tax = inclusive price × 100 ÷ (100 + GST rate). For ₹1,180 at 18%, that is ₹1,000 plus ₹180 GST. Type the price before tax as the rate and the maker adds the GST, so the total matches the price you promised.