Quotation › Quotation format

What to put on a quotation

No law fixes the format of a quotation, so customers judge it by how clear it is. A good quotation answers every question before it is asked: what exactly is offered, at what price, with how much tax, until when, and on what terms.

The parts of a clear quotation

1. Your business: name, address, state, phone and email, and your GSTIN if you are registered. A logo makes it look like it came from a real business, which matters when the customer compares three quotations.
2. The word "Quotation" (or "Estimate") at the top, so nobody mistakes it for a bill.
3. Quotation number and date. A number such as QT/26-27/014 lets the customer refer to it in their purchase order, and lets you find it again.
4. Valid until. The last date on which you promise these prices.
5. The customer: name, address, state and, for a business customer, their GSTIN. Their state decides whether the tax will be CGST + SGST or IGST.
6. Enquiry reference: their enquiry number, tender number or the date of their call, so the purchase officer can match your quotation to their request.
7. Items: a description precise enough to compare (brand, model, size, grade), HSN or SAC code, quantity with unit, rate, any discount and the GST rate.
8. Totals: the value before tax, the tax, any round off and the total, plus the total in words.
9. Terms: payment, delivery time, freight and installation, warranty, and what is not included. See ready-to-use terms.
10. Signature of the person authorised to make the offer, with your business name.

An example

A Ludhiana supplier quotes office chairs to a company in Chandigarh:

Item	HSN	Qty	Rate	Value	GST
Mesh office chair, model MX-20, black	9401	25 Nos	₹4,200.00	₹1,05,000.00	18%
Delivery and assembly at site	9967	1 Job	₹2,500.00	₹2,500.00	18%

Punjab (03) to Chandigarh (04) is a supply to another state or UT, so the quotation shows IGST 18%: ₹19,350.00 and a total of ₹1,26,850.00. Valid for 15 days, 30% advance with order, delivery in 10 days after the advance.

Common mistakes

• No validity date. The customer comes back three months later and expects the old price.
• "Rates plus GST extra" without the amount. The customer compares your price before tax with someone else's price with tax and thinks you are cheaper or dearer than you are. Show the tax.
• Vague descriptions like "chair" or "painting work". If the item isn't exact, the customer can't compare, and an argument starts after delivery.
• Hidden extras. Freight, loading, installation and travel should be either a line in the quotation or a clear term ("Freight extra at actual").