What Is A Proforma Invoice And Why Is It Important In Business?

A proforma invoice is a pre-sale document that helps buyers and sellers agree on pricing, payment terms, taxes, and delivery details before the actual transaction happens. This article explains the meaning of a proforma invoice, its role in GST and exports, how it differs from a tax invoice, and why businesses use it for advance payments, customs, and purchase approvals. Learn the correct format, common mistakes to avoid, and practical examples used in real business transactions.

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