Quotation Format: Free Templates + Complete Guide (2026)

Quick Answer: A quotation format is a structured business document that outlines the price, quantity, and terms of products or services offered to a potential buyer. It must include your company details, client details, itemized pricing, applicable taxes (GST in India), payment terms, and an authorized signature. Download our free Word and Excel quotation format templates below.

What Is a Quotation Format? 

A quotation format — also called a price quotation, business quote, or sales quotation — is a formal document a seller sends to a potential buyer before any transaction takes place. It communicates exactly what products or services will be delivered, at what price, and under what conditions.

Think of it as your business's first official answer to the question: "How much will it cost?"

A quotation is not legally binding by itself. It becomes binding only when both parties sign a contract or the buyer issues a Purchase Order (PO) in response. However, a well-structured quotation dramatically increases the chance of winning a deal — because it signals professionalism, transparency, and trust.

Why Does Your Quotation Format Matter?

Most businesses lose deals not because their price is too high, but because their quotation looks unprofessional. A sloppy, poorly formatted quote creates doubt. A clean, structured one builds confidence.

Consider these real business scenarios:

• A construction contractor sends a handwritten estimate on plain paper. His competitor sends a PDF with clear line items, GST breakdown, and a validity date. The client picks the competitor — even at a slightly higher price.
• A freelance designer sends a quote without a validity period. The client comes back two months later expecting the same rate. Dispute follows.
• An IT vendor sends a quote without HSN codes. Their GST invoice later doesn't match — causing compliance headaches for both parties.

The right quotation format prevents all of these problems.

Key Elements of a Professional Quotation 

Every professional quotation — regardless of industry — must contain the following sections:

1. Header Information

• Your company name, logo, and registered address
• Phone number and email address
• GSTIN (mandatory for GST-registered businesses in India)
• A unique Quotation Number (example: QT-2026-001)
• Quotation Date — the date it was created
• Valid Until Date — the expiry date of this quote (typically 15–30 days)

2. Client / Buyer Details

• Client's full name or business name
• Client's billing address
• Client's phone and email
• Client's GSTIN (if they are a registered business)

3. Subject Line

A one-line description of what this quotation is for. Example: "Quotation for Supply and Installation of CCTV Surveillance System — XYZ Office, Delhi"

This saves time and avoids confusion, especially when multiple quotes are exchanged.

4. Itemized Table

The most important section. Must include:

5. Tax Section

• Subtotal (before tax)
• CGST % and amount
• SGST % and amount (or IGST if inter-state supply)
• Any applicable cess
• Grand Total

6. Terms and Conditions

• Payment terms (advance percentage, payment mode, due dates)
• Delivery timeline
• Warranty or guarantee (if any)
• What happens if scope changes
• Jurisdiction for disputes

7. Bank Details (Optional but Recommended)

Including bank details in the quotation makes it easy for the client to transfer advance payment immediately upon approval.

8. Authorized Signature

• Name and designation of the authorized person
• Company seal or stamp
• Date of signing

Simple Quotation Format — Step by Step 

Here is the simplest, cleanest quotation format you can use today — even as a small business or freelancer:

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

              QUOTATION

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

FROM:                         TO:

[Your Company Name]           [Client Name]

[Address]                     [Client Company]

[City, State, PIN]            [Client Address]

Phone: [+91-XXXXXXXXXX]       Phone: [+91-XXXXXXXXXX]

Email: [your@email.com]       GSTIN: [Client GSTIN]

GSTIN: [Your GSTIN]

Quotation No: QT-2026-001

Date: 01 June 2026

Valid Until: 30 June 2026

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Subject: [Brief description of what this quotation covers]

S.No | Description        | Qty | Unit | Rate   | Amount

-----|--------------------|----|------|--------|--------

  1  | [Product/Service]  |  5  | Nos  | 2,000  | 10,000

  2  | [Installation]     |  1  | Job  | 1,500  |  1,500

  3  | [AMC - 1 Year]     |  1  | Year | 3,000  |  3,000

-----|--------------------|----|------|--------|--------

                                    Subtotal  | 14,500

                                    CGST 9%   |  1,305

                                    SGST 9%   |  1,305

                                    Grand Total| 17,110

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Amount in Words: Seventeen Thousand One Hundred Ten Rupees Only

TERMS & CONDITIONS:

1. Payment: 50% advance, 50% before delivery

2. Delivery: 7–10 working days from order confirmation

3. Warranty: 1 year on parts and labor

4. This quotation is valid for 30 days from the date above

                              For [Your Company Name]

                              ______________________

                              Authorized Signatory

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

This format works for almost any business. It covers every element a client needs to make a decision and every detail you need for compliance.

GST Quotation Format for India (2026) 

If you are GST-registered, your quotation format must include specific tax details. India's GST system introduced in 2017 has made accurate tax breakup non-negotiable in business documents.

CGST vs SGST vs IGST — Which One to Use?

This is one of the most common sources of confusion. Here is the rule:

Example: If you are in Delhi and your client is also in Delhi, you charge CGST 9% + SGST 9% = 18% total. If your client is in Mumbai, you charge IGST 18%.

GST Tax Slabs — Quick Reference

HSN and SAC Codes — Why They Are Mandatory

Under GST rules, every product must have an HSN code (Harmonized System of Nomenclature) and every service must have a SAC code (Services Accounting Code). These codes must appear in your quotation and must match your invoice exactly.

Why it matters: If the HSN/SAC on your quotation does not match the invoice, your client cannot claim Input Tax Credit (ITC) — which is a serious issue for B2B transactions. Clients will reject your invoice and ask for a corrected one.

Common SAC codes for service businesses:

• 998314 — IT consulting services
• 995411 — Construction services
• 998211 — Legal advisory services
• 996111 — Retail trade services

Pro Tip: Always confirm the HSN/SAC code from the GST portal or consult your CA before quoting a new product category.

Quotation Format in Word — Free Download 

Our free Word quotation format template includes:

 Professional two-column header (your details + client details)
 Auto-formatted itemized table with HSN/SAC column
 GST breakup rows — CGST, SGST, and IGST
 Terms and Conditions section
 Authorized Signatory block with stamp space
 Works with Microsoft Word 2013 and above
 Fully editable — replace our placeholder text with your details

[⬇ Download Free Word Quotation Format Template]

How to Use the Word Template

Step 1: Download the .docx file and open it in Microsoft Word.

Step 2: Replace the placeholder company details in the header section with your actual company name, address, GSTIN, and contact information.

Step 3: Fill in your client's details on the right side of the header.

Step 4: Update the Quotation Number and dates. Use a consistent numbering system: QT-YYYY-001, QT-YYYY-002, and so on.

Step 5: Delete the sample items in the table and add your actual products or services, along with HSN/SAC codes, quantities, and rates.

Step 6: Update the tax rows based on whether the transaction is intra-state or inter-state.

Step 7: Review the Terms and Conditions and edit them to reflect your actual business policies.

Step 8: Save and export to PDF before sending to the client. Always send as PDF — never as an editable Word file. A Word file can be accidentally edited by the client, creating disputes.

Quotation Format in Excel — Free Download

The Excel quotation format template is ideal if you want automatic calculations and plan to send multiple quotations per month.

 Qty × Rate = Amount calculated automatically
 GST calculated automatically based on subtotal
 Grand Total formula updates as you add or remove line items
 Alternating row colors for readability
 Print-ready A4 format
 Works with Microsoft Excel 2013 and Google Sheets

[⬇ Download Free Excel Quotation Format Template]

When to Use Excel vs Word

Industry-Wise Quotation Format Examples

Different industries have specific requirements. Here is what to include for the most common sectors:

Construction Work Quotation Format

Construction quotations tend to be complex because they involve both materials and labour. Always separate these clearly.

Your itemized table should distinguish:

• Material supply — sand, cement, steel, tiles, etc. (HSN code required)
• Labour charges — mason, carpenter, electrician, etc. (SAC code: 995411)
• Equipment hire — JCB, scaffolding, concrete mixer, etc.
• Overhead and site charges — power connection, water supply, site office

GST rate for construction services is typically 12% under SAC 9954, but this varies based on the nature of the project (residential affordable housing has different rates). Always confirm before quoting.

Also include:

• Site measurement date and drawings reference
• Scope of work limitations (what is NOT included)
• Penalty clauses for delayed handover (optional but builds trust)

Electrical Work Quotation Format

Electrical quotations must be very specific because materials and labour have different tax rates.

• Wiring and cables — mention brand, gauge, and ISI marking
• Switches and sockets — brand and model
• MCBs and distribution boards — brand, ampere rating
• Installation and labour — per point charges clearly mentioned
• Testing and commissioning — included or charged separately?

Always mention whether the quote includes supply of materials or labour only, because this changes the entire tax treatment.

IT Services Quotation Format

IT service quotations are typically cleaner and simpler but require SAC codes.

Recommended structure:

• Development charges (break down by module or milestone)
• Design charges (UI/UX, wireframing)
• Server/hosting (monthly or annual)
• Licenses and third-party APIs (pass-through cost — clarify markup)
• Training and handover
• Annual Maintenance Contract (AMC) — separate line item
• Payment linked to milestones, not just calendar dates

SAC code for most IT services: 998314 (IT consulting) or 998313 (software development). Check the exact code with your CA.

Freelancer Quotation Format

Freelancers often undersell themselves because their quotations look informal. A professional quotation format changes the perception of your work.

Include:

• Project title and brief description of deliverables
• Number of revisions included
• What is out of scope (anything not explicitly in scope)
• Intellectual property — who owns the final work?
• Milestone-based payment schedule
• Cancellation policy — what happens if the client cancels midway?

Even as a freelancer, a quotation that clearly answers these questions will dramatically reduce disputes and speed up payment.

Trading / Wholesale Quotation Format

Traders dealing in goods need to be especially careful with HSN codes and GST rates, as these directly affect the client's ITC claims.

Include:

• Product name with full specification (brand, model, grade, size)
• HSN code for each product
• MRP vs your selling rate (if applicable)
• Freight and packing charges — stated separately
• Payment terms and credit period
• Delivery location and mode (EX-Works, FOR destination, etc.)
• Validity — raw material prices fluctuate; use a shorter validity of 7–15 days

Quotation Format vs Invoice — Key Differences

People often confuse quotations with invoices. They serve completely different purposes.

Important: Never call your quotation an invoice. If a client raises a dispute or claims the quotation was a confirmed sale, having two separate documents — a clearly dated quotation and a separately numbered invoice — protects you legally.

7 Common Quotation Format Mistakes to Avoid

These mistakes cost businesses deals, create disputes, and in some cases lead to GST compliance issues.

Mistake 1: No Validity Date

If you do not mention when the quotation expires, the client can come back six months later and demand the same prices — even if your costs have changed. Always include a Valid Until date. Standard practice is 15–30 days. For commodity traders where prices change daily, even 7 days is reasonable.

Mistake 2: Vague Item Descriptions

"Work charges — ₹80,000" tells the client nothing. What work? How many units? What is included? Vague descriptions invite negotiation, create disputes, and signal that you are not organized.

Be specific: "Supply and installation of 32-channel DVR with 2TB hard drive — 1 No — ₹15,000"

Mistake 3: Wrong GST Type (CGST vs IGST)

A surprisingly common error. Applying CGST + SGST on an inter-state supply — or applying IGST on an intra-state supply — creates an invalid tax document. Your client will reject the invoice, and you will need to issue a corrected document. Always check the delivery state before selecting the tax type.

Mistake 4: Missing HSN / SAC Codes

Without HSN/SAC codes, your B2B client cannot claim Input Tax Credit on your invoice. They will refuse to accept it. Add the codes to your quotation from the start so there is no mismatch later.

Mistake 5: No Terms and Conditions

Payment terms, delivery timelines, and revision policies seem like legal formalities — until a dispute happens. At that point, a quotation with clear T&Cs becomes your best defense. Spend five minutes writing them once, then reuse the same block in every quotation.

Mistake 6: Sending an Editable File

Sending a Word or Excel quotation file to a client is risky. Prices or quantities can be edited — accidentally or otherwise — and you have no way to prove what you originally quoted. Always convert to PDF before sending.

Mistake 7: No Quotation Number

If you cannot track your own quotations, you cannot run a business efficiently. Use a simple sequential numbering system: QT-2026-001, QT-2026-002, and so on. This makes follow-up calls faster, connects the quotation to the final invoice, and signals that you are an organized, professional operation.

How to Send a Quotation Professionally 

Writing a great quotation is only half the job. How you send it matters just as much.

The Covering Email

Never send a quotation as a silent attachment. Always write a short, professional covering email. Here is a template:

Subject: Quotation No. QT-2026-001 — [Brief Project Description]

Dear [Client Name],

Thank you for your interest. Please find attached our quotation QT-2026-001 for [project/product description].

Key highlights: • Total value: ₹[amount] (inclusive of GST) • Delivery timeline: [X] working days • Validity: 30 days from the date of this quotation

Please review and let us know if you have any questions. We are happy to discuss any adjustments to the scope or pricing.

Best regards, [Your Name] | [Your Designation] [Company] | [Phone]

Follow-Up Timeline

Most businesses send a quotation and then wait. Most deals are won or lost during the follow-up phase.

The client who seems quiet is often still evaluating. A professional, non-pushy follow-up at Day 3 closes a surprising number of deals.

Automate Your Quotation Process with ZYNO

If you are sending more than 10 quotations a month, the manual process — designing the document, calculating GST, tracking approvals, following up — starts consuming significant time and introducing errors.

ZYNO Procurement is a procurement and operations platform built for exactly this problem.

Here is what changes when you move from manual to ZYNO:

ZYNO is designed for businesses that deal with multiple vendors, multiple approvers, and high quote volumes. It eliminates data re-entry, reduces approval time, and gives management real-time visibility into procurement spend.

Result: Companies using ZYNO report a 40% reduction in procurement processing time and near-zero errors on GST documents.

Frequently Asked Questions 

Q: Is a quotation legally binding in India?

A quotation is generally not legally binding on its own. It becomes binding only when both parties execute a formal contract or when the buyer issues a Purchase Order (PO) accepting the quoted terms. However, if a client pays an advance based on the quotation, that advance can create an implied agreement. Always issue a formal contract for high-value engagements.

Q: What is the difference between a quotation and a purchase order?

A quotation is sent by the seller to the buyer, proposing a price. A purchase order (PO) is sent by the buyer to the seller, accepting that price and formally committing to the purchase. The flow is: Enquiry → Quotation → PO → Invoice → Payment.

Q: How many days should a quotation be valid for?

Standard practice in India is 15 to 30 days. For businesses where input costs fluctuate frequently — commodity traders, contractors dependent on raw material prices — a validity of 7 to 15 days is more appropriate. Always state the validity explicitly. Never leave it open-ended.

Q: Do I need to include GST in a quotation if I am not GST-registered?

No. If your annual turnover is below the GST registration threshold (₹20 lakh for most businesses, ₹10 lakh in special category states), you are not required to charge or collect GST. Do not mention GST in your quotation. Simply quote your final price without any tax breakup.

Q: Can I change the price after sending a quotation?

Yes, but only before the client has accepted it or placed a purchase order. If you need to revise a quotation, issue a new revised version with the same quotation number followed by a revision indicator: QT-2026-001-R1. Clearly mark it as a revision so there is no confusion about which version applies.

Q: What is HSN code and is it mandatory in a quotation?

HSN (Harmonized System of Nomenclature) is a standardized code system used to classify goods under GST. SAC (Services Accounting Code) serves the same purpose for services. While technically mandatory on tax invoices — not quotations — including them in your quotation is strongly recommended. It prevents mismatches with your final invoice and avoids ITC disputes for your B2B clients.

Q: Can a quotation be sent via WhatsApp or email?

Yes. There is no legal requirement for a quotation to be delivered in any specific way. However, always send it as a PDF attachment rather than a screenshot or text message. A PDF looks professional, cannot be accidentally edited, and can be easily filed by both parties for future reference.

Q: What is the difference between a quotation and a proforma invoice?

A quotation is an offer that invites negotiation. A proforma invoice is a more formal pre-shipment document that looks like an invoice and is often used for customs purposes, import/export, or requesting advance payment. In practice, many businesses use the terms interchangeably, but technically a proforma invoice is a more committed document than a quotation.

Summary: Quotation Format Checklist

Before you send any quotation, run through this quick checklist:

• Unique quotation number assigned
• Quotation date and valid until date mentioned
• Your company name, address, and GSTIN included
• Client's full name, company, and GSTIN included
• Subject line describing the scope of work
• Each item has a clear description, HSN/SAC code, quantity, unit, and rate
• Tax type is correct (CGST+SGST for intra-state, IGST for inter-state)
• Grand Total is correct and matches the itemized amounts
• Amount in words written out
• Terms and conditions cover payment, delivery, and validity
• Document saved as PDF before sending
• Covering email written and quotation attached
• Follow-up reminder set for Day 3