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Yes, a pro forma invoice is a negotiable document. A customer can negotiate on various details like price, shipping costs, delivery time etc. It can be amended even after both parties sign it.

With regard to a valid tax invoice, section 1(1) provides that it is document provided as required by section 20.If a 'pro forma invoice' notifies an obligation to make payment, it would be an invoice as envisaged in the Value-Added Tax Act.

Since it is a quotation for goods under question, the buyer is not required to make payment against such an invoice. In other words, such an invoice is not a tax invoice as it does not lead to recording of accounts receivable for seller and accounts payable for buyer. Thus, Pro Forma GST Invoice is not legally binding.

Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.

Importers use pro forma invoices when declaring the value of goods in a shipment for customs clearance.The customer will use this statement to pay the bill, and will keep it for tax and accounting purposes.

Proforma invoices are not legally binding and are not counted as official sales in your accounting department. Traditional invoices confirm a purchase or sale, whereas proforma invoices are just a way to establish the terms of the sale.

Proforma applies to invoices that are not yet completed which means that the invoices do not have an invoice number that is needed for every legal invoice. Unlike an invoice, a proforma invoice is an estimate or a quote that outlines the goods and services that a seller commits to selling.