What is the difference between a quotation and an estimate?

In everyday Indian business the two words mean the same thing, a written offer of your price before the work. Some trades use estimate for an approximate figure and quotation for a firm price, but the format is identical.

Do I need to add GST on a quotation?

If you are GST registered, show the GST amount separately on the quote so the customer sees the real total they will pay. If you are not registered, quote your price without GST and say so.

How long should a quotation be valid?

Most small businesses keep quotes valid for 7 to 30 days. Add a clear validity line so you can re-quote fairly if raw material or transport costs change.

Can I turn a quotation into an invoice later?

Yes. In an app like IndiaCRM you convert an accepted quotation into a GST invoice with one tap, so you do not re-type the items and nothing gets missed.

Is a quotation legally binding in India?

A quotation is an offer, not a contract, so on its own it does not force either side. It becomes binding once the customer accepts it in writing and you both act on the agreed terms.

How to Make a Quotation: A Simple Guide for Indian Small Businesses

Why a proper quotation wins you the order

When a customer asks "what will this cost", the way you answer decides whether you get the job. A price mumbled over the phone gets forgotten by evening. A clean written quotation with your business name, an itemised price and clear terms tells the customer you are serious, and it stays in their WhatsApp for them to compare and approve.

A quotation, also called an estimate, is simply a written offer of your price before you do the work or supply the goods. It is not a bill, so the customer does not owe you money yet. But a good one does two jobs at once. It makes you look professional, and it protects you from arguments later because everything was agreed in writing.

What every quotation should include

Whether you run a workshop, a print shop, a catering service or a trading business, a solid quotation has these parts:

Your business details. Name, address, phone, and GSTIN if registered.
A quotation number and date. QTN-2026-018 style, so both sides can refer to it.
The customer's name and details. Who the quote is for.
An itemised list. Each product or service, quantity, rate and amount, not one vague lump sum.
Taxes shown clearly. The GST amount separately, so the customer sees the total they will actually pay.
Validity. "This quote is valid for 15 days." This stops a customer coming back in three months expecting the old price.
Terms. Advance required, delivery time, and payment terms in plain words.

Step by step: make a quotation in minutes

You can do this on paper, but an app makes it faster and lets you convert the quote into a bill later. Here is the flow:

Step 1: Add the customer. Enter their name and number once so it is ready for the quote and any future invoice.
Step 2: List the items. Add each product or service with quantity and rate. Keep descriptions clear, for example "Vinyl banner 6x4 ft, full colour".
Step 3: Set the tax. Pick the GST rate for each item and the app works out the tax and total.
Step 4: Add terms and validity. State the advance, delivery time and how long the price holds.
Step 5: Generate the PDF. The app makes a numbered quotation that looks professional.
Step 6: Send it on WhatsApp. Share the PDF in the customer's chat. When they say yes, convert the same quote into a GST invoice with one tap.

Get the free IndiaCRM app

IndiaCRM does billing, inventory, khata and CRM in one free app for iPhone and Android, no per-user fees. Download the app or see the features.

Quotation vs proforma invoice vs invoice

People mix these up, so here is the difference in one look:

If a customer wants a document to release an advance or process an order internally, a proforma invoice is the right next step after the quote. Once the job is done, turn it into a full bill using our guide on how to make an invoice.

A sample quotation you can copy

Here is a simple structure that works for most Indian small businesses:

Header: Sharma Prints, 12 MG Road, Pune. GSTIN 27ABCDE1234F1Z5. Quotation QTN-2026-018, dated 28 Aug 2026.
For: Green Cafe, Kothrud, Pune.
Items: Menu cards A4, 200 nos at 18 each = 3,600. Table standees, 20 nos at 90 each = 1,800.
Subtotal: 5,400. GST at 18% = 972. Total = 6,372.
Terms: 50% advance, delivery in 4 working days, quote valid 15 days.

Always add a validity date

The single most useful line on a quotation is "valid for 15 days". Prices of paper, raw material and transport move fast in India. A validity date lets you re-quote fairly instead of being held to an old rate.

Turn the quote into an order and a bill

The best reason to make quotations in an app is that the moment the customer approves, you convert the quote into a GST invoice without re-typing anything. You can then send that bill and a UPI link on WhatsApp and get paid. See the full features to understand how quotes, bills and payments connect.

This how-to is part of a set. Once the quote is accepted, learn how to send an invoice on WhatsApp, stay on top of dues with how to track payments, and if you sell stock, read how to manage inventory for a small business.

IndiaCRM lets you make a professional quotation, share it on WhatsApp and convert it to a bill in the same free app. Get it from the mobile app page and start quoting like a proper business.